EPA v. PRODUCTION PLATING - PRODUCTION PLATING (CERCLA)

Case summary

ON OCTOBER 12, 1999 A FIRE DESTROYED AN ELECTROPLATING AND METAL FINISHING FACILITY LOCATED AT 23120 GRATIOT AVENUE IN EASTPOINTE, MICHIGAN. THE PROPERTY IS CURRENTLY OWNED AND WAS OWNED AT THE TIME OF THE FIRE BY VALENTINE INVESTMENTS, L.L.C. (VALENTINE). VALENTINE LEASED THE PROPERTY TO PRODUCTION PLATING, INC. (PLATING) AND PLATING CONDUCTED THE METAL FINISHING OPERATIONS AT THE FACILITY. AS A RESULT OF THE FIRE, HAZARDOUS SUBSTANCES USED IN THE PLATING PROCESSES WERE RELEASED. ON THE DAY OF THE FIRE, PLATING RETAINED M.L. CHARTIER, INC. (CHARTIER), AN ENVIRON- MENTAL CONTRACTOR, TO CONDUCT CLEANUP OPERATIONS AT THE FACI LITY. HOWEVER, BEFORE THE CLEANUP WAS COMPLETED, CHARTIER ABANDONED ITS CLEANUP OPERATIONS BECAUSE IT RECEIVED NO PAY- MENT FOR ITS SERVICES. AFTER CHARTIER DISCONTINUED ITS CLEANUP OPERATIONS, EPA ISSUED A UNILATERAL ADMINISTRATIVE ORDER UNDER SECTION 106 OF CERCLA, 42 U.S.C.  9606, TO VALENTINE AND P LATING REQUI- RING THEM TO COMPLETE THE CLEANUP ACTIVITIES. VALENTINE AND PLATING INFORMED THE REGION THAT THEY COULD NOT PERFORM THE WORK REQUIRED BY THE ORDER DUE TO FINANCIAL CONSTRAINTS. SUBSEQUENTLY, EPA CONDUCTED A REMOVAL AT THE FACILITY NOW KNOWN AS THE PRODUCTION PLATING FIRE SUPERFUND SITE (THE SITE). EPA WAS NAMED AS A DEFENDANT IN AN INTERPLEADER CASE FILED BY TRANSPORTATION INSURANCE COMPANY IN STATE COURT ON DECEMBER 13, 1999. OTHER DEFENDANTS NAMED BY TRANSPORTATION INSURANCE INCLUDE VALENTINE, PLATING, CHARTIER, JONATHAN EGLE, PAULETTE EGLE, AND THE CITY OF EASTPOINTE. DOJ REMOV- ED THE CASE TO THE FEDERAL DISTRICT COURT FOR THE EASTERN DISTRICT OF MICHIGAN ON JANUARY 11, 2000. THE REGION REFERRED A COST RECOVERY CASE TO DOJ ON FEBRUA- RY 10, 2000. DOJ FILED A CROSS CLAIN FOR COST RECOVERY AGAINST VALENTINE AND PLATING ON BEHALF OF EPA ON FEBRUARY 29, 2000, AND AMENDED THE CROSS CL AIMS TO ADD JONATHAN EGLE AND PAULETTE ELGE AS CROSS CLAIM DEFENDANTS ON OCTOBER 10, 2000. P.P.I. AEROSPACE, INC. FILED A VOLUNTARY PETITION FOR BANK- RUPTCY IN U.S. BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF MICHIGAN ON MARCH 14, 2002 UNDER CHAPTER 11 OF THE U.S. BANKRUPTCY CODE, BANKRUPTCY PETITION NO. 02-46274. AS OF FEBRUARY 28, 2002, EPA HAS INCURRED $797,613.47 IN RESPONSE COSTS FOR THE SITE. ON OR ABOUT OCTOBER 19, 1999, THE EGLES INCORPORATED PPI AEROSPACE. PPI AEROSPACE IS AN ELECTROPLATING BUSINESS PRO- VIDING THE SAME PRODUCTS AND SERVICES PREVIOUSLY PROVIDED BY PLATING. IT LEASES THE FACILITY AT 23514 GROESBECK IN WARREN, MICHIGAN WHICH IS OWNED BY AMBER, ANOTHER COMPANY FORMED BY THE EGLES WITHIN DAYS AFTER THE FIRE. PPI AERO- SPACE HAS PUBLICIZED ITS SERVICES AND SOLICITED BUSINESS FROM FORMER CUSTOMERS OF PLATING. IT ALSO EMPLOYS SEVERAL FORMER EMPLOYEES OF P LATING. EPA'S CLAIMS AGAINST PPI AEROSPACE ARE BASED ON THE FRAUDU LENT TRANSFER MADE BY PLATING AND VALENTINE TO PPI AEROSPACE PLATING LEASED ITS ASSETS TO PPI AEROSPACE. PPI AEROSPACE HAS MADE NO PAYMENTS UNDER THIS LEASE. A BALANCE SHEET DATED JULY 31, 2001 SHOWS THAT PPI AEROSPACE OWES PLATING $626,163.84. IN ADDITION TO THE ASSETS THAT PLATING TRANSFERRED TO PPI AEROSPACE, AMBER TRANSFERRED THE $640,000 IN LOAN FUNDS THAT IT OBTAINED FROM BANK ONE BY MORTGAGING VALENTINE'S PROPERTY AND AT LEAST $533,000 IN LOAN FUNDS THAT IT OBTAINED FROM THE SBA BY MORTGAGING VALENTINE'S PROPERTY TO PPI AEROSPACE. SINCE VALENTINE HAS NOT RECEIVED ANYTHING OF VALUE IN RETURN AND VALENTINE IS INCAPABLE OF SATISFYING ITS LIABILITY TO THE UNITED STATES, ASSETS OF PPI AEROSPACE EQUIVALENT IN VALUE TO THE AMOUNT OF THE MO

Defendants (1)

• PRODUCTION PLATINGNamed in complaintNamed in settlement

Facilities (2)

• PRODUCTION PLATING INCORPORATED

  23120 GRATIOT AVE., EASTPOINTE, MI, 48021

  Registry ID: 110000404544

• PRODUCTION PLATING FIRE SITE

  23120 GRATIOT AVE., EASTPOINTE, MI, 48021

  Registry ID: 110000404544

Statutes cited

• CERCLA 106 — Imminent & Substantial Endangerment Order

Enforcement conclusions (1)

• PRODUCTION PLATING - PRODUCTION PLATING (CERCLA)entered 2004-07-18

  Primary law: CERCLA

Timeline (6 milestones)

• 2002-06-12Referred To Dept Of Justice
• 2002-07-02Complaint Filed With Court
• 2002-10-29Enforcement Action Data Entered
• 2004-07-18Final Order Entered
• 2004-07-18Final Order Lodged
• 2004-12-17Enforcement Action Closed