EPA v. UNION SCRAP IRON AND METALS

Case summary

NATURE OF THE CASE THIS PROPOSED COST RECOVERY CASE CONCERNS THE UNION SCRAP SITE IN MINNEAPOLIS, MN. THE SITE IS LOCATED IN NORTH MIN- NEAPOLIS AND WAS OPERATING AS A BATTERY RECYCLING FACILITY UNTIL THE EARLY 1980S. LEAD CONTAMINATED BY-PRODUCTS FROM THE RECYCLING OPERATION ACCUMULATED ON THE SITE FOR ALMOST A DECADE. LEAD WAS CONTAMINATING THE SOILS ON THE SITE AND AIR AND WATER IN THE AREA SURROUNDING THE SITE. AFTER A DETERMINATION THAT THE LEAD CONTAMINATION POSED A SERIOUS THREAT TO HUMAN HEALTH AND THE ENVIRONMENT, THE U.S. EPA INITIATED A STABILIZATION ON DECEMBER 9, 1985. THE STA- BILIZATION ACTION CONTINUED UNTIL JANUARY 17, 1986. ONCE A PERMANENT REPOSITORY FOR THE LEAD CONTAMINATED WASTES WAS FOUND, A REMOVAL TO THE LEAD CONTAMINATED SOILS AND DEBRIS WAS INITIATED IN APRIL OF 1988. FURTHER SOIL REMOVAL OCCUR- RED IN NOVEMBER 1988. CAUSE OF ACTION USEPA SEEKS THE RECOVERY OF APPROXIMATELY $2.1 MIL EXPEND- ED AT THE SITE PURSUANT TO SECT 107 OF CERCLA, 42 USC SECT 9607. THE RECOMMENDED DEFENDANTS INCLUDE A FORMER OPERATOR OF THE FACILITY AND MANY OF THE GENERATORS OF THE LEAD TO THE SITE. PROPOSED REMEDY THE REMEDY SOUGHT IN THIS ACTION IS THE REIMBURSEMENT OF ALL RESPONSE COSTS EXPENDED BY THE USEPA IN CLEANING THE UNION SCRAP SITE. WE ALSO SEEK A DECLARATORY JUDGMENT ON LIABILITY FOR FUTURE COSTS EXPENDED AT THE UNION SCRAP SITE. ISSUES OF NAT'L OR PRECEDENTIAL IMPORTANCE 1. AFTER JOSLYN CORP. V. T.L. JAMES & CO., CIVIL NO. 87- 2054 (W.D. LA. SEPT. 19, 1988), THE LOW THRESHOLD FOR HOLD- ING CORPORATE OFFICERS PERSONALLY LIABLE ENJOYED UNDER CER- CLA HAS BEEN BROUGHT INTO QUESTION. THE LIABILITY OF RIC- HARD ROSED MAY DEPEND ON WHETHER THE COURT USES THE TRADI- TION CERCLA STANDARD OR THE HIGHER VEIL PIERCING TEST FROM COMMERCIAL LAW. 2. THE BATTERY RECYCLERS COULD CLAIM THAT THEY SOLD WHOLE BATTERIES TO A RECLAIMER OF HAZARDOUS SUBSTANCES AND DID NOT DISPOSE OF THE BATTERIES AS CONTEMPLATED UNDER CERCLA. EXISTING CASE LAW ON THIS POINT DEAL WITH CLEAR-CUT SITUA- TIONS OF USED WASTE OIL BEING SOLD FOR DISPOSAL PURPOSES. THIS CASE COULD BE A GOOD PRECEDENT ADDING A VALUABLE NEW EXAMPLE FOR THE CASE LAW IN THIS DISTRICT OF DISPOSING OF HAZARDOUS SUBSTANCES BY SELLING THEM TO ANOTHER PARTY.

Defendants (14)

• ALBIN IDE (DBA IDE TRUCKING CO.)Named in complaintNamed in settlement
• CHGO AND NORTHWESTERN TRANS CO.Named in complaintNamed in settlement
• EDWARD HARTMAN, DBA HARTMAN HYDE & FURNamed in complaintNamed in settlement
• JERRY' AUTO SALVAGE, INC.Named in complaintNamed in settlement
• LARRY HOVDE (DBA HOVDE SERV.)Named in complaintNamed in settlement
• MANKATO IRON & METAL CO.Named in complaintNamed in settlement
• PAUL HARTMAN, DBA HARTMAN HYDE & FUR CO.Named in complaintNamed in settlement
• RICHARD ROSENNamed in complaintNamed in settlement
• ROGER TOMPKINS (DBA R & M MIDWEST)Named in complaintNamed in settlement
• ROSEN BROTHERS ENTER.Named in complaintNamed in settlement
• SAM BLOOM IRON & METALNamed in complaintNamed in settlement
• SAMUEL HARTMAN (DBA HARTMAN HYDE & FUR)Named in complaintNamed in settlement
• UNION SCRAP IRON & METALSNamed in complaintNamed in settlement
• WHITE METAL CO.Named in complaintNamed in settlement

Facilities (1)

• UNION SCRAP IRON & METAL COMPANY

  1608 WASHINGTON AVENUE NORTH, MINNEAPOLIS, MN, 55411

  Registry ID: 110003793342

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (3)

• UNION SCRAP IRON AND METALentered 1993-01-14

  Primary law: CERCLA

• UNION SCRAP IRON & METALentered 1993-01-15

  Primary law: CERCLA

• UNION SCRAP IRON AND METAentered 1993-01-14

  Primary law: CERCLA

Timeline (8 milestones)

• 1985-11-08Enforcement Action Data Entered
• 1988-12-28Referred To Dept Of Justice
• 1989-01-13Referred TO U.S. Attorney
• 1989-01-13Complaint Filed With Court
• 1993-01-15Final Order Lodged
• 1993-01-15Final Order Entered
• 1993-01-15Concluded
• 1997-09-24Enforcement Action Closed