Indiana Department of Environmental Management v. Schnippel Construction, Inc.

778 N.E.2d 407, 2002 Ind. App. LEXIS 1772, 2002 WL 31416914
CourtIndiana Court of Appeals
DecidedOctober 28, 2002
Docket49A04-0203-CV-118
StatusPublished
Cited by16 cases

This text of 778 N.E.2d 407 (Indiana Department of Environmental Management v. Schnippel Construction, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Indiana Department of Environmental Management v. Schnippel Construction, Inc., 778 N.E.2d 407, 2002 Ind. App. LEXIS 1772, 2002 WL 31416914 (Ind. Ct. App. 2002).

Opinion

OPINION

BAKER, Judge.

Appellant-plaintiff Indiana Department of Environmental Management (IDEM) appeals the order of the trial court reversing and remanding a Pinal Order from the Chief Environmental Law Judge (CELJ) granting IDEM’s motion for partial summary judgment and assessing civil penalties against Schnippel Construction, Inc. (Schnippel), and Tower Senior Apartments, LP (Tower) (collectively, the respondents). IDEM also appeals the trial court’s order taxing costs of enforcement against the State of Indiana (the State). IDEM argues that the trial court substituted its judgment for that of the administrative agency when it reversed the Final Order granting IDEM’s motion for partial summary judgment because uncontradict-ed evidence showed that violations of asbestos regulations occurred. IDEM also contends that the trial court substituted its judgment for that of the administrative agency when it reversed the Final Order imposing civil penalties against the respondents because the administrative law judge’s (ALJ) calculation of penalties was not arbitrary and capricious. Finally, IDEM asserts that the trial court erred in taxing the costs of this action against the State because the State is not a party to this action and because imposition of such costs is contrary to law. Concluding that the trial court substituted its judgment for that of the administrative agency when it reversed the CELJ’s Final Order and that the trial court erred by taxing the costs of this action against the State, we reverse.

FACTS

The facts most favorable to the judgment reveal that Tower owns an apart *410 ment building in Anderson, Indiana (the site). In early 1997, Tower contracted with Schnippel to act as general contractor for the rehabilitation of the site. A complete renovation of the site’s interior was planned.

In late October 1997, Schnippel contracted with Specialty Systems, Inc. (SSI) and Air Management Techniques, Inc. (AMT) to conduct asbestos inspections of the site. SSI’s inspector, however, was not certified to conduct such inspections. Each company noted that asbestos was present in the building, but their employees looked only in places such as pipe chases, access doors, and opened vents, which were easily accessible.

On November 4, 1997, Schnippel submitted a Notification of Demolition and Renovation Operations form to IDEM. The form stated that no regulated asbestos containing material (RACM) was to be removed from the site and that only demolition work and removal of ceilings, walls, and structures from the interior of the building was to occur. Shortly thereafter, Dirt Brothers, a subcontractor hired to perform the demolition and removal work, commenced operations at the site.

On November 20, 1997, investigators from IDEM and the Anderson Office of Air Management (AOAM) inspected the site. On the third floor, they found Dirt Brothers workers cutting pipes and removing walls and ceilings. Material that appeared to be RACM had fallen off the pipes and onto the floor. The inspectors measured the amount of disturbed RACM by pacing off their footsteps alongside the material. The inspectors also found twelve trash bags full of what they suspected was RACM. A sample taken from one of the trash bags and another taken from beside an outdoor dumpster contained asbestos.

IDEM and AOAM immediately ordered Dirt Brothers to stop all work. AOAM notified Tower and Schnippel of possible asbestos regulation violations and advised them to contact a certified asbestos abatement contractor to conduct an emergency cleanup. Schnippel hired SSI to perform the cleanup, and SSI submitted a second Notification of Demolition and Renovation Operations form to IDEM. This form reported that 3,836 linear feet of RACM was to be removed from the site and noted that a “[d]emo contractor [had] contaminated the building during interior demolition.” AR. p. 903.

After the emergency asbestos removal, Schnippel resumed renovation activities at the site. On December 15, 1997, IDEM and AOAM inspectors again visited the site. The inspectors saw that pipes had been disturbed on the eighth through the tenth floors. On the ninth and tenth floors, trash bags containing material that appeared to be RACM were present. A sample from a tenth floor bag tested positive for asbestos. The inspectors determined that fifty linear feet of RACM had been disturbed on floors eight through twelve.

On January 13, 1998, IDEM informed Schnippel that its November 4, 1997, demolition notice failed to meet the requirements of section 14-10 of title 326 of the Indiana Administrative Code, as that notice had stated that no asbestos would be disturbed. On March 11, 1998, IDEM sent one notice of violation to Schnippel and Tower and another to Dirt Brothers and Tower. These notices offered an opportunity to enter into an agreed order providing for corrective actions, but the respondents made no reply.

On October 1, 1998, IDEM issued a Notice and Order of the Commissioner, alleging that Schnippel, Tower, and Dirt Brothers had committed the following vio *411 lations: (1) failure to conduct a thorough inspection, 1 (2) failure to provide IDEM with written notification of the intention to disturb asbestos during renovation, 2 (3) failure to remove all RACM before renovation activities began, 3 (4) failure to wet RACM during and after removal from facility components, 4 (5) failure to post warning signs and secure RACM at the renovation site, 5 and (6) illegally engaging in an asbestos removal project by hiring a contractor not properly licensed or accredited to remove asbestos. 6 IDEM alleged that the asbestos regulations violated by the respondents applied because more than 260 linear feet of asbestos had been disturbed. 7 IDEM assessed civil penalties of $110,000 against the respondents for the November 20 and December 15, 1997, violations.

On October 22, 1998, Schnippel and Tower requested administrative review of the Notice and Order, and an ALJ was assigned to the respondents’ case. On September 10, 1999, IDEM moved for partial summary judgment regarding responsibility for the violations of asbestos regulations. On January 4, 2000, the ALJ issued a Recommended Order granting IDEM’s motion for partial summary judgment as to responsibility for all violations because she found that no genuine issue of material fact existed as to whether the threshold amount of asbestos had been disturbed.

On March 15, 2000, the ALJ held a hearing regarding the assessment of civil penalties. The respondents alleged that the penalty should be $27,312, and IDEM argued that the penalties levied were within the amount allowed by statute. At the hearing, the IDEM officer who assessed the penalties against the respondents testified that she calculated the penalties using IDEM’s penalty matrix, but she stated that superiors had told her to always use the highest Base Penalty from the matrix. AR. p. 659.

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Bluebook (online)
778 N.E.2d 407, 2002 Ind. App. LEXIS 1772, 2002 WL 31416914, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indiana-department-of-environmental-management-v-schnippel-construction-indctapp-2002.