EPA v. MCI, INC. SITE

Case summary

MCI, INC., LOCATED IN DETROIT, MI OPERATED A PAINT AND RUST STRIPPING BUSINESS BETWEEN 1970 AND APRIL 21, 1989, WHEN THE CORPORATION FILED FOR BANKRUPTCY UNDER CHAPTER 7 OF THE BANKRUPTCY CODE. AS A SECONDARY PART OF ITS BUSINESS, MCI ALSO OPERATED A PLATING BUSINESS AT THE SAME LOCATION. PAINT AND RUST STRIPPING OPERATIONS RESULTED IN THE ACCUMULATION OF PAINT WASTE AND STRIPPING SLUDGE, INCLUDING HAZARDOUS SUBSTANCES SUCH AS LEAD, CADMIUM, AND CHROMIUM. ON 10/11/89, THE USEPA TECHNICAL ASSISTANCE TEAM CONDUCTED A SITE ASSESSMENT OF THE SITE. APPROX 250 DRUMS WERE OBSERVED OUTSIDE THE FENCE LINE AND APPEARED TO CONTAIN PAINT SLUDGE. AN ADDITIONAL 300 DRUMS OF MATERIAL WERE FOUND INSIDE THE BUILDING. OTHER CONTAINERS ON THE PREMISES INCLUDED 10 ABOVE GROUND STORAGE TANKS AND 20 OPEN VATS, ALL OF WHICH WERE FOUND TO CONTAIN HAZ SUBSTANCES. BETWEEN JUNE AND DECEMBER 1990, USEPA CONDUCTED REMOVAL ACTIVITIES PURSUANT TO SECTION 104 OF CERCLA. ON 9/19/91, THE USEPA REFERRED THE MATTER OF MCI, INC. TO DOJ FOR PROSECUTION OF USEPA'S COST RECOVERY CLAIM UNDER SECTION 107 OF CERCLA, AGAINST SEVERAL OF THE POTENTIALLY RESPONSIBLE PARTIES TO THE SITE. ON 11/4/91, USEPA HELD A MEETING WITH THE PRPS WHO RECEIVED A DEMAND FOR PAYMENT FROM EPA DATED 8/16/91, IN AN ATTEMPT TO RESOLVE THEIR LIABILITY FOR APPROX $1 MILLION IN RESPONSE COSTS INCURRED BY THE AGENCY AT THE MCI SITE. AS A RESULT OF THAT MEETING, THE PRP GROUP EXPRESSED AN INTEREST TO EPA IN SETTLING THIS MATTER. SINCE A SATISFACTORY SETTLEMENT WITH THE PRP'S SEEMED FORTHCOMING, USEPA WITHDREW ITS REFERRAL BY A LETTER TO THE ASSISTANT ATTORNEY GENERAL, U.S. DEPARTMENT OF JUSTICE, DATED 1/2/92. THIS MATTER IS NOW BEING RE-REFERRED TO DOJ FOR SIMULTANEOUS FILING OF A COMPLAINT AND LODGING OF THESE CONSENT DECREES. THE TOTAL SITE RESPONSE COST INCURRED BY USEPA AND DOJ, TO DATE, EQUALS $1,064,525.63, INCLUDING INTEREST. THE AGENCY HAS NEGOTIATED A SETTLEMENT IN THIS MATTER WHEREBY APPROX 52 PARTIES WILL REIMBURSE EPA FOR APPROX 92% OF ITS RESPONSE COSTS ($992,381.70) UNDER 2 CONSENT DECREES. ONE DECREE WILL ADDRESS ROUGHLY 90% OF THE COSTS, WHILE AND IDENTICAL SECOND DECREE WILL SETTLE THE REMAINING 2% WITH A SMALLER GROUP THAT ORIGINALLY COMPRISED RECALCITRANT PARTIES. THE SETTLING DEFS HAVE ALLOCATED COSTS AMONGST THEMSELVES AND WILL REIMBURSE THE U.S. FOR ITS COSTS BY ONE PAYMENT UNDER THE FIRST DECREE, AND 7 SEPARATE PAYMENTS IN THE SECOND DECREE IS THAT NO PARTY IN THAT GROUP WAS WILLING TO ORGANIZE AND CONSOLIDATE PAYMENT. HOWEVER, THE SECOND GROUP DID APPLY A PRO RATA SHARE APPROACH TO ALLOCATING COSTS.

Defendants (2)

• JENNIE MUIR, ET. AL.Named in complaintNamed in settlement
• MCI, INC.Named in complaintNamed in settlement

Facilities (1)

• MCI INC

  666 HARPER, DETROIT, MI, 48202

  Registry ID: 110009338109

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (2)

• JENNIE, MUIR, ET. AL/MCI, INC.entered 1993-04-21

  Primary law: CERCLA

• MCI/JENNIE, MUIR, ET. AL/entered 1993-04-21

  Primary law: CERCLA

Timeline (7 milestones)

• 1990-08-10Enforcement Action Data Entered
• 1992-09-30Referred To Dept Of Justice
• 1992-09-30Complaint Filed With Court
• 1993-04-21Concluded
• 1993-04-21Final Order Lodged
• 1993-04-21Final Order Entered
• 1993-06-14Enforcement Action Closed