United States v. Dayton Industrial Drum, Inc.

CourtDistrict Court, S.D. Ohio
DecidedApril 5, 2021
Docket3:16-cv-00232
StatusUnknown

This text of United States v. Dayton Industrial Drum, Inc. (United States v. Dayton Industrial Drum, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Dayton Industrial Drum, Inc., (S.D. Ohio 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO WESTERN DIVISION UNITED STATES OF AMERICA, . Plaintiff, V. Case No. 3:16-CV-232 DAYTON INDUSTRIAL DRUM, JUDGE WALTER H. RICE INC., et al., Defendants.

DECISION AND ENTRY SUSTAINING MOTION OF UNITED STATES TO ENTER CONSENT DECREE WITH SUNOCO (DOC. #84); TERMINATION ENTRY

Plaintiff, United States of America (“Plaintiff” or “United States”), has filed a Motion to Enter the Consent Decree with Sunoco, Inc., Doc. #84. ETC Sunoco Holdings, LLC, f/k/a Sunoco, Inc. (“Sunoco”), has filed a Response. Doc. #85. The United States has filed an affidavit of counsel, exhibits and a reply. Docs. ##87 and 88. The proposed Consent Decree resolves Plaintiff's claims against Sunoco and Carboline Company (“Carboline”) for the recovery of unreimbursed response costs under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) § 107(a), 42 U.S.C. § 9607(a).' These costs were incurred

‘Sunoco has an indemnity and joint defense arrangement with Carboline, a Missouri company. Doc. #83-1, PAGEID#4521. The proposed Consent Decree, signed by both

by the United States Environmental Protection Agency (“EPA”) for the clean-up of the Lammers Barrel Superfund Site in Beavercreek, Ohio (the “Site”). In addition to resolving liability in this case (“the 2016 Case”), the settlement also gives Sunoco and Carboline protection from contribution claims alleged against them in Lammers Barrell PRP Group v. Carboline Co., et □□□ Case No. 3:17-cv-135, United States District Court for the Southern District of Ohio (the "2017 Case”).? The Government, in both the 2016 and the 2017 Cases, alleges that Sunoco and/ or Carboline are the legal successors to the Moran Paint Company and have CERCLA liability for its actions as an owner/operator of the Site and as an arranger. The proposed Consent Decree requires Sunoco to pay $1,300,000.° Doc. #83. Sunoco orally accepted the terms of the proposed Consent Decree on December 13, 2019. Doc. #85-1, PAGEID#4567. On December 20, 2019, the Court held a telephone status conference for the 2017 Case. The purpose of the call was to advise counsel in that case of the Court's rulings on several pending motions for summary judgment and motions for partial summary judgment. Counsel for Plaintiff in the 2016 Case requested to

Sunoco and Carboline, define Sunoco as the “Settling Defendant” and Carboline as an “Additional Covered Party.” /d. * Except where it is necessary to indicate the identity of the individual defendant, the Court will refer to Carboline and Sunoco collectively as “Defendants.” Although only Carboline was named as a Defendant in the 2017 Case, the Lammers Barrell PRP Group alleged, in the alternative, that Sunoco was the successor to Moran Paint. Doc. #1, PAGEID#8.

be included on the call. Before the Court announced its rulings in the 2017 Case, counsel for the United States informed the Court and all attorneys in the 2017 Case of the settlement with Sunoco and that the settlement included Carboline. Counsel for Defendants acknowledged the settlement and stated their clients had signed the proposed Consent Decree. Counsel for Plaintiff stated she expected approval from the appropriate government official in mid-January. At the request of counsel! for Plaintiff and Sunoco, the Court agreed to stay all dates in the 2016 Case, pending the filing of the proposed Consent Decree. The Court then orally announced its rulings on the motions and on the motions for partial summary judgment in the 2017 Case. Counsel were told that the motion for summary judgment filed by Defendants Sunoco and Carboline, Doc. #60, as well as two other motions for summary judgment filed by other PRP defendants, had been sustained. A Decision and Entry in the 2017 Case, overruling plaintiff's motion for partial summary judgment and sustaining Defendants’ motion for summary judgment, was filed March 27, 2020 (“Decision”). Doc. #87. This Decision found that there was no genuine issue of a material fact that either Carboline or Sunoco had successor liability for the actions of Moran Paint during the time period it was a prior owner/operator of the Site or for the time period that it was allegedly an arranger. /d. Sunoco, on behalf of itself and Carboline, filed its Response to Plaintiff's Motion to Enter the Consent Decree on March 20, 2020. It states that Defendants do not oppose the proposed Consent Decree, “have not ‘reneged’ on the deal”

and that “everyone should evaluate the proposed Consent Decree in the full light of [the] decisions” in the 2017 Case. Doc. #85, PAGEID#4559. Finally, Sunoco contends that the proposed Consent Decree may be unenforceable, since it is not signed by the Assistant Attorney General of the Environmental and Natural Resources Division (“ENRD"). For the reasons set forth below, the Motion to Enter Consent Decree with Sunoco, Doc. #84, is sustained.

Background A. The Site The Site includes a 2.5 acre property from which hazardous substances were released (the “Property”), an adjoining ditch, a contaminated aquifer underlying the property and a contaminated portion of the aquifer that extends eastward and downgradient from the Property. From approximately 1944, until a fire burned down its operations in 1951, the Moran Paint Company (“Moran Paint”) manufactured various hazardous substances at the Property including paint, lacquers and paint removers. Doc. #4, PAGEID#29. Moran Paint also owned the Site from at least 1948 to 1951. /d. In approximately 1951, Moran moved from the Site and in 1957 relocated to Xenia, Ohio. /d. After its move to Xenia, Moran Paint allegedly continued to use the Site to dump hazardous wastes. In October 1963, it was purchased by Carboline Company of Ohio, a wholly owned subsidiary of Carboline. /d,,

PAGEID#30. Shortly after the purchase, the name was changed from Carboline Company of Ohio to the Moran Paint Company. The company continued its dumping of hazardous waste at the Site until 1969, when a fire destroyed the Site’s operations. /d. Kohnen-Lammers operated a spent solvent treatment and reclamation business at the Site from approximately 1952 until the fire in 1969. /d., PAGEID#30. At the request of its customers, Kohnen-Lammers picked up the spent solvent from the customer's facilities and brought it back to the Site. /d., PAGEID#31. Moran Paint, both before and after its October 1963 purchase by Carboline Company of Ohio, was a customer of Kohnen-Lammers. /d., PAGEID#33. Lammers Barrel, a barrel-reconditioning facility, was located at the Site from approximately 1955 to 1964. /a., PAGEID#27. Part of its reconditioning process included the dumping of any residual waste oils, solvents, and other chemicals remaining inside the barrels into an initial drain pit. The contents of the drain flowed into an underground septic tank at the Site. /a., PAGEID#28. In 1972, Lammers Barrel changed its name to Dayton Industrial Drum, Inc. /d. In 1985, the Ohio EPA detected vinyl chloride in residential drinking water wells that were downgradient from the Site. By 2000, a total of thirteen area homes had been connected to an alternate water supply. /a., PAGEID#23. A remedial investigation and feasibility study (“RI/FS”) was conducted in 2002 for the purposes of determining the nature and extent of contamination, and to study

and compare the feasibility of potential remedies for the Site contamination. /d. Originally, 21 parties (“Respondents”) agreed to perform the RI/FS pursuant to an Administrative Order on Consent (“AOC”). Twenty additional Respondents were added in 2008. /a. The Site is divided into Operable Unit 1(“OU-1”) and Operable Unit 2 (“OU- 2").

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United States v. Dayton Industrial Drum, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-dayton-industrial-drum-inc-ohsd-2021.