EPA v. BESTFOODS (AEROJET)

Case summary

AEROJET, THROUGH ITS SUBSIDIARIES, IS THE PRESENT OWNER/ OPERATOR OF THIS DEFUNCT CHEMICAL PLANT. SITE WAS CONTAMI- NATED WITH WASTE DISPOSED ONSITE FROM THE PRODUCTION OF METHYL ISOCYANIDE AND OTHER CHEMICALS BY OTT CHEMICAL I AND OTT CHEMICAL II, WHICH IS A SUBSIDIARY OF BESTFOODS, INC., F/K/A CPC INT'L. INC. APPARENTLY AEROJET AND ITS SUBS DID NOT DISPOSE OF WASTE ONSITE. SITE OWNERSHIP WAS AS FOLLOWS: 1956 - OTT 1, 1965 - OTT II, 1972 - STORY CHEMICAL (BANKRUPT , 1978 - PRESENT, CORDOVA OF MICHIGAN (FROM BANKRUPTCY TRUSTEE). THE STATE OF MICHIGAN INDEMNIFIED AEROJET AND SUBSIDIARIES AT TIME OF AEROJET'S PURCHASE FROM ALL ENVIRON- MENTAL LIABILITY IN EXCHANGE FOR PARTIAL SITE CLEANUP AND $600,000. EPA FILED COST RECOVERY CASE UNDER CERCLA IN 1989. AFTER OVER 70 DEPOSITIONS AND 2 MILLION DOCUMENTS IN DISCOVERY, TRIAL TOOK PLACE IN MAY - JUNE 1991. DISTRICT COURT FINDS ALL DEFENDANTS LIABLE, INCLUDING PARENT CORPORA- TIONS AEROJET AND CPC. 6TH CIRCUIT, EN BANC, REVERSES (7-5). U.S. APPEALS TO U.S. SUPREME COURT, WHICH ISSUES AN OPINION IN 1998. CASE REMANDED FOR FURTHER PROCEDINGS CONSISTENT WITH S. CT. OPINION. DURING FEDERAL PROCEDINGS, AEROJET SUCCESSFULLY SUED MICHIGAN TO ENFORCE IMDEMNITY AGREEMENT, LEAVING MICHIGAN POTENTIALLY LIABLE FOR OVER $100 MILLION IN PAST AND FUTURE RESPONSE COSTS. THIS CONSENT DECREE REQUIRES AEROJET TO PERFORM RD/R FOR OU3 (SITE SOILS), ACKNOWLEDGES AEROJET'S CONTRIBUTION TO SITE RESPONSE COSTS OF $2.6 MILLION, AND ALSO ACKNOWLEDGES THAT THE STATE OF MICHIGAN WILL FUND AND IMPLEMENT OU3 (ESTIMATED COST $5.6 MILLION) ON BEHALF OF AEROJET VIA AN ATTACHED STATE SUPERFUND CONTRACT WITH EPA. FURTHER PRO- CEDINGS ON THE REMAND AGAINST BESTFOODS STILL PENDING.

Defendants (4)

• BESTFOODS (AEROJET)
• AEROJET - GENERAL CORP.Named in complaint
• CORDOVA CHEMICAL CO. OF MICHIGANNamed in complaint
• CORDOVA CO. OF CALIFORNIANamed in complaint

Facilities (1)

• BESTFOODS (AEROJET)

  500 AGARD RD, NORTH MUSKEGON, MI, 49445

  Registry ID: 110010596710

Statutes cited

• CERCLA 107A — Cost Recovery
• CERCLA 106A — Imminent & Substantial Endangerment Order

Timeline (3 milestones)

• 1999-03-26Referred To Dept Of Justice
• 1999-10-01Complaint Filed With Court
• 1999-10-22Enforcement Action Data Entered