EPA v. SHILLMAN, DAVID

Case summary

SUMMARY AND BACKGROUND DAVID SHILLMAN WAS THE OWNER AND OPERATOR OF A RCRA SUBTITLE C TSD FACILITY LOCATED AT 10370 PETERS ROAD, MID- DLEFIELD, OH. HE ABANDONED THE FACILITY IN 1983, LEAVING A SUBSTANTIAL VOLUME OF HAZARDOUS WASTES THAT WERE SUBSE- QUENTLY REMOVED BY THE U.S. EPA'S EMERGENCY RESPONSE STAFF UNDER THE AUTHORITY OF SECTION 107 OF THE COMPREHENSIVE EN- VIRONMENTAL RESPONSE, OMPENSATION AND LIABILITY ACT. RE- SPONSE COSTS, INCLUDING OVERSIGHT AND INDIRECT COSTS, ARE APPROXIMATELY $415,000, TO DATE. SHILLMAN IS A GRADUATE OF HARVARD LAW SCHOOL, WHO WAS SUSPENDED FROM THE PRACTICE OF LAW IN OHIO IN 1981. HE HAS SINCE REGAINED HIS LICENSE. HE OPERATED THE J. V. PETERS FACILITY, FIRST AS A PARTNER AND LATER AS PRESIDENT, AND HELD AN OPTION TO PURCHASE THE FACILITY AND THE LEASE THERE- ON PERSONALLY. IT IS BELIEVED THAT HE EITHER HAS ASSETS THAT CAN AND SHOULD BE APPLIED TO THE COST OF CLEANING UP HIS FACILITY, WHICH WAS OPERATED IN GROSS VIOLATION OF THE REQUIREMENTS OF THE RESOURCE CONSERVATION AND RECOVERY ACT, OR HAS VOIDABLY TRANSFERRED THOSE ASSETS TO FAMILY MEMBERS OR OTHERS. THE REMOVAL ACTION INVOLVED PROPER DISPOSAL OF SEVERAL THOUSAND DRUMS AND THE CONTENTS OF TWO 20,000-GALLON TANKS CONTAINING A WIDE VARIETY OF CHLORINATED AND NONCHLORINATED SOLVENTS AND OTHER MATERIALS. SHILLMAN SUED THE AGENCY TO HALT THE CLEANUP, AND WAS UNSUCCESSFUL AT BOTH THE TRIAL AND APPEAL LEVELS. SHILLMAN FILED A CHAPTER 13 ACTION LATE IN 1986, AFTER THE ADMINISTRATOR REMANDED A RCRA ADMINISTRATIVE ENFORCEMENT ACTION TO THE REGION FOR REFILING TO CORRECT THE LISTING OF PARTIES IN THE COMPLAINT. THE ADMINISTRATIVE LAW JUDGE HAD FOUND SHILLMEN PERSONALLY LIABLE FOR PENALTIES FOR THE MANY VIOLATIONS PROVED AT THE HEARING. NOTICE OF THE BANKRUPTCY PROCEEDING WAS SENT TO REGION V'S WESTLAKE, OHIO OFFICE RATHER THAN TO THE ATTORNEYS KNOWN BY SHILLMAN TO BE IN- VOLVED IN THE COST-RECOVERY ACTION AND THE RCRA PROCEEDING. STATUS OF BNKRUPTCY ACTION THIS MATTER HAS BEEN SET A NUMBER OF TIMES FOR EXAMINA- TION OF SHILLMAN AS DEBTOR AND FOR CONFIRMATION OF THE PLAN OF REPAYMENT, WHICH PLAN PROVIDES FOR PAYMENT OF ONE CENT ON THE DOLLAR. OBLIGATIONS TO THE UNITED STATES, FOR PENAL- TIES IN THE RCRA PROCEEDING AND FOR THE CLEANUP COSTS, WERE NOT LISTED BY SHILLMEN IN HIS SCHEDULES OF DEBTS. ARGUABLY, THE FILING OF THE CHAPTER 13 PROCEEDING BRINGS THE AUTOMATIC STAY PROVISIONS OF THE CODE INTO PLAY, REQUIRING THE FILING OF A MOTION FOR RELIEF FROM THE STAY TO ALLOW THOSE PROCEED- INGS TO MOVE AHEAD AGAINST SHILLMAN. THE U. S. ATTORNEY'S OFFICE FOR THE NORTHERN DISTRICT OF OHIO IS PREPARING THE MO MOTION. THE EXAMINATION OF SHILLMAN HAS BEEN SET FOR APRIL 6, 1987, AND WILL BE CONDUCTED BY KATHLEEN ANN SUTULA OF THE U. S. ATTORNEY'S OFFICE. BECAUSE THE DATE FOR FILING THE PROOF OF CLAIM WAS IM- MINENT, THIS MATTER WAS HANDLED BY TELEPHONIC REFERRAL AND DISCUSSION AMONG THE REGIONAL STAFF, THE U. S. ATTORNEY'S OFFICE AND THE JUSTICE DEPARTMENT. THE REGION PROVIDED THE NECESSARY DOCUMENTATION FOR THE PROOF OF CLAIM, WHICH WAS SIGNED BY F. HENRY HAVICHT II AND FILED ON MARCH 3, 1987. A COPY IS APPENDED AS ATTACHMENT A HERETO.

Defendants (2)

• J. V. PETERS AND CO., INC.Named in complaint
• SHILLMAN, DAVIDNamed in complaint

Facilities (1)

• PETERS J V AND COMPANY

  17030 PETERS RD, MIDDLEFIELD, OH, 44062

  Registry ID: 110019897290

Statutes cited

• CERCLA 107 — Superfund

Timeline (6 milestones)

• 1987-02-27Enforcement Action Data Entered
• 1987-02-27Referred To Headquarters
• 1987-02-27Referred To Dept Of Justice
• 1987-03-03Complaint Filed With Court
• 1987-12-26Concluded
• 1987-12-26Enforcement Action Closed