EPA v. PADGETT, JAMES M. / TRI-STATE PLATING

Case summary

A. BACKGROUND ON JUNE 28, 1988, THE REGION DIRECTLY REFERRED A REQUEST TO FILE ON BEHALF OF THE U.S.EPA AN APPLICATION FOR REIMBURSE- MENT OF ADMINISTRATIVE EXPENSE REGARDING THR PADGETT CHAPTER 11 BANKRUPTCY PROCEEDING. THE OFFICE OF ENFORCEMENT AND COM PLIANCE MONITORING (OECM) CONCURRED IN THE REFERRAL, AND THE DEPT. OF JUSTICE (DOJ) BEGAN WORK ON IT. DOJ REQUESTED THAT THE REGION FURTHER CLARIFY THE COST DOCUMENTATION TO BE USED IN FILING THE CLAIM. THE REGION PROVIDED THAT INFORMATION, AND THE REGION, OECM AND DOJ WERE PROCEEDING TO PREPARE THE CLAIM FOR ADMINISTRATIVE EXPENSE. HOWEVER, ON JANUARY 19, 1989, THE BANKRUPTCY PROCEEDING WAS CONVERTED FROM CHAPTER 11 TO CHAPTER 7. THIS PROMPTED RE-EXAMINATION OF THE ORIGIN- AL REFERRAL. ACCORDING TO THE AMENDED DEBTORS' DISCLOSURE STATEMENT, THE PROPERTY AT 1716 KELLER AVE. (THE TRI-STATE PLATING SITE) WAS VALUED AT $500,000. HOWEVER, THE ACTUAL VALUE OF THE PROPERTY WAS APPROX. $30,000, LESS LIENS AND OTHER INDEBTEDNESS FAR IN EXCESS OF THE PROPERTY'S REAL WORTH. THEREFORE THE LITIGATION TEAM DECIDED IT WOULD NOT BE A WISE USE OF THE UNITED STATES' RESOURCES TO PROCEED WITH AN APPLICATION FOR REIMBURSEMENT OF ADMINISTRATIVE EXPENSES. THE AMOUNT OF MONEY TO BE GAINED FROM SUCH AN EXERCISE WOULD BE SMALLER THAN THE VALUE OF THE ATTORNEY TIME SPENT PURSUING EITHER MOTION. THE REGION REQUESTED THAT THESE MOTIONS NOT BE PURSUED. THE REGION STILL REQUIRED THE ASSISTANCE OF THE JUSTICE DEPT ON A MATTER RELATED TO THE ORIGINAL REFERRAL BUT WHICH AROSE AFTER JUNE 28. THE REGION INTENDED TO PROCEED WITH AN EXPEDITED RESPONSE ACTION (ERA) PURSUANT TO THE COMPREHEN- SIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT AS AMENDED (CERCLA), 42 U.S.C. SECTION 9601 ET SEQ. THE FINAL ENGINEERING EVALUATION/COST ANALYSIS, DESCRIBING THE ERA IN MORE DETAIL, WAS SENT TO AND RECEIVED BY DOJ. AS THE BANKRUPTCY PROCEEDING WAS CONVERTED FROM CHAPTER 11 TO CHAP- TER 7, IT APPEARED THAT IT WOULD BE NECESSARY TO APPROACH THE RECENTLY APPOINTED TRUSTEE IN SOME FORMAL MANNER IN ORDER TO ASSURE CONTINUED ACCESS TO THE SITE. CONTINUED ACCESS WAS NECESSARY TO ALLOW EPA TO ABATE THE IMMINENT AND SUBSTANTIAL ENDANGERMENT WHICH IS PRESENT AT THE 1716 KELLER AVENUE PROPERTY. THIS REQUEST WAS EXPEDITED FOR SEVERAL REASONS. THE ERA IS A REMOVAL ACTION; SUCH ACTIONS MUST PROCEED QUICKLY. BILL BOLEN, THE RPM/OSC FOR THE SITE, HOPED TO BE ON-SITE BY FEBRUARY 15, 1989, BECAUSE THE PROJECT HAD TO BE RE-BID IF WORK DID NOT START BY THEN. RE-SOLICITING BIDS WOULD CON- SUME MORE VALUABLE TIME. DUE IN LARGE PART TO THE COMMENDABLE EFFORTS OF SUSAN SQUIRES, THE DOJ STAFF ATTORNEY, A STIPULATION AND ORDER CONCERNING THE PROPERTY AT 1716 KELLER AVENUE WAS SIGNED BY THE INTERIM TRUSTEE WITH THE CONSENT OF DEBTOR'S ATTORNEY, AND ENTERED BY THE BANKRUPTCY JUDGE ON FEBRUARY 14, 1989. THE STIPULATION AND ORDER ALLOWS EPA TO ENTER THE SITE TO CARRY OUT ALL AUTHORIZED RESPONSE ACTION UNDER CERLCA. (REFER TO CASE NUMBER 05-88-E214 FOR DETAILED SUMMARY.)

Defendants (1)

• JAMES PADGETTNamed in complaintNamed in settlement

Facilities (1)

• PLATING SERVICE CO INC

  1716 KELLER AVE, COLUMBUS, IN, 47201

  Registry ID: 110009326363

Statutes cited

• CERCLA 104E4 — Inspection and Samples
• CERCLA 104E3 — Entry Access

Enforcement conclusions (1)

• JAMES M. PADGETTentered 1989-02-14

  Primary law: CERCLA

Timeline (7 milestones)

• 1989-02-08Enforcement Action Data Entered
• 1989-02-08Referred To Dept Of Justice
• 1989-02-14Enforcement Action Closed
• 1989-02-14Final Order Lodged
• 1989-02-14Final Order Entered
• 1989-02-14Complaint Filed With Court
• 1989-02-14Concluded