EPA v. JAGIELLA, JOHN

Case summary

BACKGROUND AND NATURE OF THE CASE STEEL CONTAINER CORPORATION, DOING BUSINESS AS CALUMET CONTAINER COMPANY, OPERATED AS A PAIL AND DRUM RECONDI- TIONING BUSINESS FROM THE 1960'S UNTIL AN APRIL 1982 FIRE DESTROYED THE PLANT BUILDING. THE SITE IS UNUSUAL BECAUSE IT IS LOCATED BOTH IN INDIANA AND ILLINOIS. MR. JOHN JAGIELLA, THE OWNER AND OPERATOR, RECONDITIONED DRUMS BY INVERTING THEM ON CONVEYOR BELTS LOCATED OVER PITS AND SENDING THEM THROUGH AN INCINERATOR. DURING THE OPERATION OF THE FACILITY, NUMEROUS AIR AND WATER POLLUTION ACTIONS WERE FILED BY U.S. EPA AND THE STATES OF ILLINOIS AND INDIANA. THESE ACTIONS ARE STILL PENDING. THE ONLY OUTSTANDING FEDERAL ACTION, HOWEVER, IS A CASE FILED UNDER THE CLEAN AIR ACT IN THE U.S. DISTRICT COURT FOR THE NORTHERN DISTRICT OF INDIANA, HAMMOND DIVISION (CAUSE NO. H82-0026). SUBSEQUENT TO THE 1982 FIRE, A FACILITY INSPECTION REVEALED THAT 69 TRUCK TRAILERS ON SITE CONTAIN SOLIDS AND LIQUIDS IN DRUM STORAGE AS WELL AS LIQUIDS IN BULK STORAGE. ANALYSES INDICATE THAT HAZARDOUS SUBSTANCES ON SITE INCLUDE AROMATIC HYDROCARBONS, XYLENE, ADHESIVES, AND PAINT WASTES. ON APRIL 24, 1982, MR. JAGIELLA WAS FORMALLY ASKED TO VOLUNTARILY CLEAN UP THE SITE. ALTHOUGH HE INITIALLY AGREED TO UNDERTAKE CLEAN UP, HE LATER RENEGED ON THIS COMMITTMENT. SEE APPENDIX A OF THE ON SCENE COORDINATORS REPORT APPENDED AS ATTACHMENT 1. IMMEDIATE REMOVAL ACTION BY U.S. EPA REGION V WAS THEN INITIATED ENTAILILNG THE REMOVAL OF 5500 GALLONS OF LIQUID AND 30 CUBIC YARDS OF SLUDGE. THESE ACTIONS WERE COMPLETED ON MAY 21, 1982 AT A COST IN EXCESS OF $12,000. THIS ACTION SEEKS RECOVERY OF THIS MONEY. SEE THE ON SCENE COORDINATOR'S REPORT APPENDED AS ATTACHMENT 1. A FURTHER PLANNED REMOVAL ACTION AT THIS SITE WAS APPROVED ON MARCH 16, 1983 TO REMOVE AN ADDITIONAL 18 TONS OF WASTE MATERIAL STORED IN DRUMS. FUTURE CONSOLI- DATION OF A COST RECOVERY ACTION FOR SUMS EXPENDED PURSUANT TO THE PLANNED REMOVAL WITH THIS IMMEDIATE REMOVAL COST RECOVERY ACTION IS LIKELY. BOTH MR. JAGIELLA AND STEEL CONTAINER CORPORATION HAVE FILED DIVISION. SEE PETITIONS APPENDED AS ATTACHMENT 5. MR. JAGIELLA IS ACTING AS DEBTOR IN POSSESSION. ALTHOUTH MR. JAGIELLA HAS NOT FILED ANY MONTHLY ACCOUNTINGS, U.S. EPA HAS LEARNED THAT MR. JAGIELLA MAY HAVE RECEIVED A $400,000 INSURANCE SETTLEMENT ON THE BURNED BUILDING. CONCURRENT WITH THE FILING OF A CIVIL ACTION, PROOFS OF CLAIM MUST BE FILED WITH THE BANKRUPTCY COURT DESIGNATING U.S. EPA AS A GENERAL UNSECURED CREDITOR FOR COSTS OF THE IMMEDIATE REMOVAL ACTION. A DRAFT PROOF OF CLAIM, ORDER FOR REIM- BURSEMENT, AND SUPPORTING AFFIDAVIT ARE APPENDED AS ATTACH- MENT 2. CONSIDERATION ALSO MUST BE GIVEN TO FILING A MOTION FOR REMOVAL OF THE DEBTOR SO THAT THE ESTATE'S ASSETS WILL BE PROPERLY ADMINISTERED BY A TRUSTEE. SEE DRAFT PETITION FOR TERMINATION OF DEBTOR'S POSSESSION APPENDED AS ATTACH- MENT 3. PROPOSED REMEDY THE REMEDY FOR RECOVERY OF FUNDS EXPENDED PURSUANT TO SECTION 104 OF CERCLA IS A COST RECOVERY UNDER SECTION 107 OF CERCLA. RELIEF CAN BE OBTAINED IN EITHER OR BOTH THE THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF INDIANA, HAMMOND DIVISION AND THE UNITED STATES BANK- RUPTCY COURT FOR THE NORTHERN DISTRICT OF ILLINOIS. ISSUES OF NATIONAL OR PRECEDENTIAL SIGNIFICANCE AS STATED ABOVE, THIS CASE WILL BE UNUSUAL AND MORE POLITICALLY SENSITIVE SINCE IT INVOLVES A SITE LOCATED IN TWO STATES. IN ADDITION, THIS WILL BE ONE OF THE FIRST CASES IN WHICH THE U.S. EPA CAN PURSUE COST RECOVERY BOTH THROUGH A CIVIL ACTION IN UNITED ST

Defendants (4)

• KRUEGER RINGIERNamed in complaintNamed in settlement
• NATIONAL CANNamed in complaintNamed in settlement
• NILES CHEMICAL PLANTNamed in complaintNamed in settlement
• SCMNamed in complaintNamed in settlement

Facilities (1)

• CALUMET CONTAINER

  3631 STATE LINE AVE, HAMMOND, IN, 46327

  Registry ID: 110007569087

Statutes cited

• CERCLA 104A — CERCLA 104(a)
• CERCLA 107 — Superfund

Enforcement conclusions (1)

• JAGIELLA, JOHN, ET ALentered 1989-03-20

  Primary law: CERCLA

Timeline (11 milestones)

• 1982-04-21Enforcement Action Data Entered
• 1983-04-21Referred To Headquarters
• 1987-02-11Referred To Dept Of Justice
• 1987-02-11Returned To Region
• 1987-02-17Referred TO U.S. Attorney
• 1987-02-17Complaint Filed With Court
• 1987-02-17Rereferred
• 1989-03-20Final Order Lodged
• 1989-03-20Final Order Entered
• 1989-03-20Concluded
• 1995-08-28Enforcement Action Closed