EPA v. NOZIK, ALBERT C., MENTOR LAGOONS, INC, MENTOR MARINAS

Case summary

NOZIK, MENTOR MARINAS, MENTOR LAGOONS DISCHARGED FILL MAERAIL INTO NAVIGABLE WATERS AND ADJACENT WETLANDS (LAKE ERIE), W/OUT A SECTION 404 PERMIT. CORPORATE DEFENDANTS WERE PLACED INTO RECEIVESHIP. U.S. MARINAS, INC., AND RECEIVE TED DALHEIM, CITING VIOLATIONS OF CWA AND RHA. DEFENDANTS VIOLATED SECTIONS 301 AND 404 OF THE CWA, AND SECTION 13 OF THE RIVERS AND HARBORS ACT (RHA), BY DISCHAR- GING FILL MATERIAL (IN THE FORM OF SOLID WASTE DEBRIS) INTO THE WATERS OF A MARINA ADJACENT TO LAKE ERIE WITHOUT FIRST OBTAINING PERMITS FROM THE U.S. ARMY CORPS OF ENGINEERS. THE PURPOSE OF THE DISCHARGES WAS TO STABILIZE THE MARINA'S BULKHEAD AND TO PREVENT EROSION OF THE LANDWARD SIDE OF THE BULKHEAD WALL. DEFENDANTS ALSO VIOLATED SECTIONS 301 AND 404 OF THE CWA BY DISCHARGING FILL MATERIAL INTO TWO ONE ACRE WETLANDS WITHOUT FIRST OBTAINING A CWA SECTION 404 PERMIT, AND VIOLATED SECTION 10 OF THE RHA BY FAILING TO MAINTAIN THE DETERIORATING BULKHEAD WALL. DEFENDANTS MENTOR LAGOONS, INC., AND METOR MARINAS, INC., WERE CORPORATIONS, AND ALBERT NOZIK WAS A SHAREHOLDER AND CORPORATE OFFICER OF BOTH CORPORATIONS. FOLLOWING THE ISSUANCE OF ADMINISTRATIVE ORDERS BY EPA UNDER SECION 309(A) OF THE CWA, THE FILL WAS REMOVED FROM THE WETLANDS AND THE MARINA WATERS. PRIOR TO THE INITIATION OF THE FEDERAL LAWSUIT, THE OTHER SHAREHOLDER SUED IN OHIO STATE COURT TO HAVE THE CORPORATIONS PLACED INTO RECEIVERSHIP AND THE ASSETS LIQUIDATED. THE COURT APPOINTED THEODORE DALHEIM AS THE RECEIVER. THE UNITED STATES DEPT. OF JUSTICE, REPRESENTING BOTH U.S. EPA AND THE ARMY CORPS, FILED SUIT AGAINST THE CORPORATE DEFENDANTS, MR. NOZIK IN HIS PERSONAL CAPACITY, AND MR. DALHEIM IN HIS CAPACITY AS RECEIVER. AFTER THE CLOSE OF DISCOVERY, THE UNITED STATES FILED A MOTION FOR SUMMARY JUDGMENT, WHICH WAS PARTIALLY GRANTED ON THE CWA AND SECTION 13 RHA COUNTS. FOLLOWING THIS JUDGMENT, THE UNITED STATES ENTERED INTO A DEFENDANTS PAID A CIVIL PENALTY OF $125,000, RESTORED THE TWO WETLANDS THAT HAD BEEN FILLED, AND SPENT $300,000 TO REPAIR THE MARINA BULKHEAD. THE CONSENT DECREE MEMORIALIZ- ING THIS SETTLEMENT WAS ENTERED ON FEBRUARY 2, 1996. FOLLOW- ING ENTRY OF CONSENT DECREE, TITLE TO THE PROPERTY AT ISSUE IN THE LAWSUIT WAS TRANSFERRED TO A THIRD PARTY (THE OSBORN- ES), WHO HAD SIGNED ON TO THE CONSENT DECREE. ON MAY 27, 1997, TITLE WAS TRANSFERRED TO THE CITY OF MENTOR, OHIO. ON DECEMBER 9, 1997, THE CITY FILED A MOTION TO INTERVENE AS A PARTY DEFENDANT UNDER RULE 24 OF THE FRCP. ALL TERMS OF THE CONSENT DECREE HAVE BEEN COMPLETED.

Defendants (4)

• MENTOR LAGOONS, INC.Named in complaintNamed in settlement
• MENTOR MARINAS, INC.Named in complaintNamed in settlement
• THEODORE J. DALHEIMNamed in complaintNamed in settlement
• ALBERT C. NOZIKNamed in complaintNamed in settlement

Facilities (1)

• MENTOR LAGOONS MENTOR MARINAS

  7833 LAKE SHORE BLVD, MENTOR, OH, 44060

  Registry ID: 110010700928

Statutes cited

• CWA 404 — Permits for Dredge and Fill Material

Enforcement conclusions (1)

• NOZIK, ALBERT C., MENTOR LAGOOentered 1996-02-02

  Primary law: CWA

  Federal penalty: $125,000

Timeline (8 milestones)

• 1988-04-18Enforcement Action Data Entered
• 1992-12-22Referred To Dept Of Justice
• 1992-12-23Referred TO U.S. Attorney
• 1993-04-14Complaint Filed With Court
• 1996-02-02Final Order Lodged
• 1996-02-02Final Order Entered
• 1996-02-02Concluded
• 2000-07-10Enforcement Action Closed