EPA v. CELLO-FOIL(THOMAS SOLVENT)

Case summary

THIS PROPOSED ACTION IS INTENDED AS A COMPANION CASE TO 2 MATTERS ALREADY FILED AND PENDING IN THAT DISTRICT, U.S. V. THOMAS SOLVENT CO., ET AL., FILE NO. K86-167, & U.S. V. GENERAL FOODS, ET AL., CASE NO. 4:87-CV-364. THIS IS A COMPLEX MATTER INVOLVING THREE DISTINCT SOURCES OF SOLVENT CONTAMINATION EACH OF WHICH RELEASES A PLUME OF SOLVENT CONTAMINATED GROUNDWATER. THE PLUMES COMMINGLE AND COLLECTIVELY IMPACT ON THE VERONA WELL FIELD, WHICH IS THE SOURCE OF THE DRINKING WATER FOR THE CITY OF BATTLE CREEK, MI. ONE OF THE SOURCES IS OWNED AND OPERATED BY GRAND TRUNK WESTERN RAILROAD COMPANY (GTWRR) (THE MARSHALLING YARD), ONE OF THE SOURCES IS OWNED BY GTWRR, BUT LEASED TO AND OPERATED BY (THE ANNEX), AND THE LAST SOURCE AREA (RAYMOND ROAD) IS OWNED AND OPERATED SOLELY BY THOMAS SOLVENT COMPANY (TSC). THIS ARRANGEMENT CREATES VERY COMPLEX LIABILITY RELATIONSHIPS AMONG THE PARTIES POTENTIALLY RESPONSIBLE FOR THE CONTAMINANT SOURCES AND THE RESPONSE COSTS INCURRED AT THE WELL FIELD ITSELF. FOR MORE COMPLETE INFORMATION REGARDING THE 3 CONTAMINANT SOURCE AREAS. THE U.S. ORIGINALLY FILED AN ACTION IN THE VERONA WELL FIELD MATTER ON MAY 28, 1986, SEEKING A FINDING OF LIABILITY AND REIMBURSEMENT OF RESPONSE COSTS AGAINST A GROUP OF 9 DEFENDANTS. AFTER VIGOROUS DISCOVERY AND MOTION PRACTICE, A PARTIAL CONSENT DECREE WAS REACHED WITH ONE OF THE 9 DEFS, GTWRR, UNDER WHICH IT ADMITTED CERCLA LIABILITY AND AGREED TO PAY THE GOVERNMENT $4.7 MILLION (REPRESENTING 75% OF THE PAST RESPONSE COSTS INCURRED THROUGH JUNE, 1987). THAT DECREE WAS ENTERED ON JUNE 5, 1989. AFTER STRENUOUS NEGOTIATIONS, A SECOND PARTIAL CONSENT DECREE WAS ENTERED ON NOVEMBER 15, 1991. THIS DECREE WAS WITH THE REMAINING 8 DEFS, ALL OF WHICH WERE RELATED TO TSC. AMONG OTHER THINGS, THE CONSENT DECREE PROVIDED A JUDGMENT IN FAVOR OF THE U.S. OF $11.625 MILLION, BUT STAYED ACTION TO ENFORCE THE JUDGMENT PENDING THE OUTCOME OF OTHER LITIGATION BETWEEN RICHARD THOMAS AND HIS INSURANCE CARRIERS. THE REASON FOR THIS IS THAT TSC, MR. THOMAS AND THE OTHER DEFS' ASSETS COMBINED WAS FAR SHORT OF THE AMOUNT NECESSARY TO SATISFY THE JUDGMENT. IT APPEARED THAT THE BEST POSSIBILITY FOR THE GOVERNMENT TO RECEIVE ANY MEANINGFUL SATISFACTION ON ITS JUDGMENT WAS THROUGH SUCCESSFUL LITIGATION ON TSC'S INSURANCE COVERAGE. THE 2 PARTIAL CONSENT DECREES IN THOMAS SOLVENT HAVE ESSENTIALLY ENDED THAT CASE. THIS ACTION SEEKS REIMBURSEMENT OF RESPONSE COSTS INCURRED IN RELATION TO THE TSC'S RAYMOND ROAD FACILITY. IT IS BASED ON INFORMATION WHICH HAS BEEN LEARNED IN THE PAST SEVERAL MONTHS REGARDING TSC'S PRACTICE OF RINSING BARRELS CONTAINING WASTE SOLVENTS AT THE RAYMOND ROAD FACILITY. THROUGH DEPOSITION TESTIMONY THE GOVERNMENT HAS LEARNED THAT TSC WOULD SOMETIMES ACCEPT BARRELS CONTAINING WASTE SOLVENTS FROM ITS CUSTOMERS. NORMALLY THOSE BARRELS WOULD BE STORED AT THE ANNEX FACILITY PENDING TRANSHIPMENT ON TO ANOTHER SITE FOR DISTILLATION OR DIPOSAL. HOWEVER, SOMETIMES TSC WOULD TRANSPORT THE BARRELS FROM THE ANNEX FACILITY TO THE RAYMOND ROAD FACILITY AND PERFORM THE BARREL RINSING OPERATION AT THE RAYMOND ROAD FACILITY. THESE ACTIVITIES WOULD RESULT IN HAZARDOUS SUBSTANCES GENERATED BY SOME OF TSC'S CUSTOMERS BEING DUMPED OR OTHERWISE DISPOSED OF AT THE RAYMOND ROAD FACILITY, THEREBY CONTRIBUTING HAZARDOUS SUBSTANCES TO THE CONTAMINANT PLUME EMANATING FROM THERE. UNDER THE JOINT AND SEVERAL LIABILITY DOCTRINE OF CERCLA, THE DISPOSAL OF ITS CUSTOMERS' WASTE SOLVENTS BY TSC CASUES THOSE CUSTOMERS TO FALL INTO ONE OF THE CATEGORIES OF LIABLE PARTIES UNDER SECTION 107 OF CERCLA, 42 U.S.C. 9607.

Defendants (4)

• CELLO-FOIL, INC.Named in complaintNamed in settlement
• CLARK EQUIPMENT CORPORATIONNamed in complaintNamed in settlement
• GENERAL FOODS CORPORATIONNamed in complaintNamed in settlement
• HOOVER UNIVERSAL, INC.Named in complaintNamed in settlement

Facilities (1)

• THOMAS SOLVENT CO

  1180 N RAYMOND RD, BATTLE CREEK, MI, 49017

  Registry ID: 110003592899

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (1)

• CELLO-FOIL (THOMAS SOLVENTentered 1998-04-17

  Primary law: CERCLA

Timeline (8 milestones)

• 1992-09-28Enforcement Action Data Entered
• 1992-09-28Referred To Dept Of Justice
• 1992-10-07Referred TO U.S. Attorney
• 1992-10-08Complaint Filed With Court
• 1998-04-17Final Order Lodged
• 1998-04-17Final Order Entered
• 1998-04-17Concluded
• 1998-05-29Enforcement Action Closed