Employers Insurance of Wausau v. Clinton

848 F. Supp. 1359, 1994 U.S. Dist. LEXIS 2722, 1994 WL 94036
CourtDistrict Court, N.D. Illinois
DecidedMarch 4, 1994
Docket93 C 1366
StatusPublished
Cited by6 cases

This text of 848 F. Supp. 1359 (Employers Insurance of Wausau v. Clinton) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Employers Insurance of Wausau v. Clinton, 848 F. Supp. 1359, 1994 U.S. Dist. LEXIS 2722, 1994 WL 94036 (N.D. Ill. 1994).

Opinion

MEMORANDUM OPINION AND ORDER

ASPEN, District Judge:

Plaintiff Employers Insurance of Wausau brings this three count action to recover the funds that it expended cleaning up a contaminated oil recycling facility in Romulus, Michigan. Presently before the court is defendants’ 1 motions for summary judgment and a protective order. For the reasons set forth below, defendants’ motion for summary judgment is granted and motion for a protective order is denied as moot.

I. Factual Background 2

On August 24, 1987, fire struck and destroyed a budding located in Wyandotte, Michigan. The building’s occupant held a policy with plaintiff Employers Insurance of Wausau (‘Wausau”), which covered certain perils, including fire, as well as the expense of debris removal resulting from such perils. At the Wyandotte property, this debris included several electrical transformers. In a settlement with the policyholder, Wausau agreed to have certain fluids and oils drained from the transformers and removed from the site. In April, 1989, seven hundred gallons of fluids were removed from the transformers and transported to an oil recycling facility in Romulus, Michigan, where the fluids were placed in process tanks for recycling.

The following month, it was discovered that the Romulus facility was contaminated with polychlorinated biphenyls (“PCBs”) 3 and volatile organic compounds (“VOCs”). 4 The source of the PCB contamination was traced to the oil which had been used in the transformers at the Wyandotte building. On September 11, 1989, the Environmental Protection Agency (“EPA”) designated Wausau as a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), as amended by the Superfund *1362 Amendments and Reauthorization Act of 1986 (“SARA”), 42 U.S.C. § 9601 et seq., 5 and demanded Wausau’s participation in the cleanup. Wausau did not respond, and in November, 1989, the EPA issued a unilateral administrative order directing Wausau and the other involved parties to begin emergency cleanup measures. Wausau strenuously objected, claiming that the EPA’s characterization of Wausau’s role in the transportation and disposal of the fluids was “materially incorrect,” “erroneous, arbitrary and wrongful.” After some further wrangling, the EPA filed an administrative action against Wausau under the Toxic Substance Control Act, 16 U.S.C. § 2601 et seq., in an effort to force Wausau to comply with the order. Without admitting any responsibility, Wausau relented and submitted an Emergency Response Action Plan (“ERAP”), setting forth the manner in which it would comply with the order. The EPA approved Wausau’s ERAP on February 26, 1990.

The Order itself listed thirty-three findings which detailed the various parties’ involvement in the PCB contamination at the Romulus facility. It further specified that “hazardous substances” were present at the site, both due to the PCB contamination and because there existed waste in drums which contained high levels of VOCs. Accordingly, the Order required the potentially responsible parties to:

a. Provide site security and develop and implement a site safety plan.
b. Pump, treat, test, and discharge contaminated water as necessary.
c. Pump and consolidate all contaminated oils and incinerate them off site.
d. Pump out sludges and dispose of them properly.
e. Excavate contaminated soils and dispose of them properly.
f. Pump and treat liquids in the dikes on site.
g. Treat lagoon water and discharge.
h. Sample, characterize, and dispose of drums of waste on site.

i.Conduct post cleanup sampling.

In addition, the order specified requirements for the disposal and treatment of “[a]ll materials containing hazardous substance, pollutants or contaminants removed pursuant to this Order.” These requirements of the Order were not limited to PCB-contaminated areas.

The ERAP, drafted by Wausau and approved by the EPA, was expressly designed to “comply with the Order to the extent technically feasible under climatic conditions existing at the Site.... ” The ERAP is somewhat more PCB specific, setting forth particular requirements with respect to PCB contamination. However, it also contains several broad statements about Wausau’s obligations at the Site. These statements include:

Forty-eight drums are reportedly located at the Site. Immediately following or concurrent with tank sampling, samples will be collected from each drum.... The objective of drum sampling and analysis is to ascertain the compatibility of the drum contents and to characterize compatible waste streams to the extent necessary for ultimate treatment and/or disposal. Once compatible waste groups have been identified, representative composite samples will be generated in the laboratory for waste characterization testing.
Surface water bodies on Site will be sampled, in accordance with the Sampling and Analysis Plan. Each discrete surface water body will be sampled immediately following completion of tank and drum waste sample collection.
Sediment samples will be collected from on and off-Site lagoons, drainage wales and other surface water bodies that are potential receptors of contaminated materials.
Immediately following, or concurrent with, sample collection, laboratory chemi *1363 cals potentially present in the former laboratory building will be inventoried for disposal. When necessary, containers will be sampled for characterization.
The Contractor will transfer contaminated oils from the storage tanks to approved hazardous waste liquid tankers. Liquids will be removed from the tanks utilizing a vacuum truck, portable or in-line pumps.
Following identification of unique waste streams, compatible drummed wastes will be blended and removed off Site for treatment or disposal in strict accordance with State and Federal regulations. The final disposal mode selected for éach waste stream will be based on an assessment of the characterization data and acceptance by approved treatment or disposal facilities. Empty drums will be crushed and disposed of as RCRA hazardous waste bulk solids.

Finally, the ERAP expressly amended the Order to allow Wausau 180 days to complete its cleanup activities.

Following the EPA’s approval of the ERAP, Wausau began its cleanup.

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Bluebook (online)
848 F. Supp. 1359, 1994 U.S. Dist. LEXIS 2722, 1994 WL 94036, Counsel Stack Legal Research, https://law.counselstack.com/opinion/employers-insurance-of-wausau-v-clinton-ilnd-1994.