EPA v. RIVERSIDE PLATING, INC.

Case summary

THE RIVERSIDE PLATING FACILITY, LOCATED IN JANESVILLE, WIS- CONSIN, WAS A SPECIALITY PLATING FACILITY. EPA'S INSPECTION OF THE FACILITY, REQUESTED BY THE WISCONSIN DEPARTMENT OF NATURAL RESOURCES, REVEALED THE PRESENCE OF HAZARDOUS CONSTITUENTS SUCH AS CYANIDE, CADMIUM, CHROMIUM, NICKEL, ZINC, AND WASTE CAUSTICS AND ACIDS. ON FEBRUARY 9, 1995, REGION 5 ISSUED AN ACTION MEMORANDUM, FINDING THAT AN IMMINENT AND SUBSTANTIAL ENDANGERMENT TO HUMAN HEALTH OR THE ENVIRONMENT, AS DEFINED BY CERCLA  106, EXISTED AT THE FACILITY. EPA'S RESPONSE ACTIVITIES, CONDUCTED FROM MARCH TO JULY, 1995, CONSISTED OF THE REMOVAL OF ALL ABANDONED HAZARDOUS LIQUID AND SOLID WASTES DISCOVERED AT THE FACILITY THE DECONTAMINATION OF THE CONTAMINATED INTERIOR STRUCTURES OF THE FACILITY BUILDING, AND LIMITED SOIL AND GROUNDWATER SAMPLING TO CONFIRM THAT THE THREAT OF DIRECT CONTACT WITH HAZARDOUS SUBSTANCES HAD BEEN REMOVED. IN CONDUCTING THESE RESPONSE ACTIONS, AND FOLLOW-UP ENFORCEMENT ACTIVITIES, EPA INCURRED RESPONSE COSTS OF $496,467.28. THE RIVERSIDE PLATING COMPANY IS ESSENTIALLY JUDGMENT-PROOF, HAVING DEBTS TOTALING OVER $2.2 MILLION. THIS COMPANY, A SMALL, CLOSELY-HELD CORPORATION, WAS OWNED BY ONE FAMILY, THE BOUZIANES. RICHARD BOUZIANE, THE ELDEST SON, SERVED AS THE PRESIDENT OF THE CORPORATION, AND WAS THE INDIVIDUAL WHO APPARENTLY MADE ALL THE DECISIONS REGARDING BUSINESS STRATE- GY, PRODUCTION METHODS, AND WASTE DISPOSAL. EPA BELIEVES THAT THERE IS SUFFICIENT EVIDENCE TO NAME HIM AS AN INDIVI- DUAL PAST OPERATOR OF THE FACILITY UNDER CERCLA  107(A)(2). HOWEVER, BECAUSE RICHARD'S ASSET SITUATION, AS WELL, IS INSUFFICIENT TO PROVIDE EPA WITH ANY TYPE OF MEANINGFUL REIMBURSEMENT OF ITS RESPONSE COSTS, THIS LITIGATION REFER- RAL EXPLORES OTHER SOURCES OF POTENTIAL RECOVERY OF EPA'S RESPONSE COSTS AND A THEORY OF LIABILITY UNDER THE FEDERAL DEBT COLLECTION PROCEDURES ACT. THE FDCPA IS THE PRIMARY BASIS BY THE UNITED STATES TO COLLECT A DEBT, AND PROVIDES A MECHANISM TO SET ASIDE TRANS- FERS INTENDED TO AVOID THE GOVERNMENT'S COLLECTION EFFORTS. THIS REFERRAL ALLEGES THAT THE BOUZIANE FAMILY ENGAGED IN A SERIES OF TRANSFERS INTO FAMILY-OPERATED TRUSTS THAT POSSI- BLY RENDERED RIVERSIDE PLATING INSOLVENT, AND THAT WERE DESIGNED TO DEFEAT THE ENVIRONMENT CLAIMS OF THE STATES OF WISCONSIN AND ILLINOIS (THE FAMILY OPERATED ANOTHER FACILITY IN ROCKFORD, ILLINOIS). IF WE CAN PROVE THE FACTS ALLEGED IN THE PRIOR SENTENCE, THOSE TRANSFERS WOULD ALSO BE FRAUDULENT AS TO THE UNITED STATES. FEDERAL DEBT COLLECTIONS PROCEDURES ACT

Defendants (6)

• BOUZIANE ENTERPRISE AND ET. AL.Named in settlement
• JOHN BOUZIANENamed in settlement
• MICHAEL BOUZIANENamed in settlement
• RICHARD J. BOUZIANENamed in complaintNamed in settlement
• RIVERSIDE PLATING, INC.Named in complaintNamed in settlement
• RUTH BOUZIANE TRUST (UNDER FDCPA)Named in complaintNamed in settlement

Facilities (1)

• RIVERSIDE PLATING COMPANY INCORPORATED

  1623 BELOIT AVE, JANESVILLE, WI, 53547

  Registry ID: 110001924892

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (1)

• RIVERSIDE PLATING, INC.entered 2000-07-23

  Primary law: CERCLA

Timeline (5 milestones)

• 1998-09-25Referred To Dept Of Justice
• 1998-09-30Enforcement Action Data Entered
• 2000-05-09Final Order Lodged
• 2000-05-09Complaint Filed With Court
• 2000-07-23Final Order Entered