ELR Citation: ELR 20078
No(s). 5:91:CV:45 (W.D. Mich. Jun 14, 1993)

The court holds that an officer of a corporation that owned land contaminated with electroplating byproducts may be personally liable for hazardous waste cleanup costs under §§107 and 113(g) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), the Michigan Environmental Response Act (MERA), and the Michigan Water Resources Commission Act (WRCA). The state sought to impose personal liability for cleanup costs against a company officer who owned and controlled the company, which constructed a building and sewerline on its property under a contract with a tenant engaged in electroplating. Soil contamination resulted from sewerline leaching, spills from a concrete pad, and leakage from air quality control equipment located on the building. The court first holds that the state's allegations show an identity of interests between the officer and his company, that the officer is the owner of the contaminated site, and that justice would be served by piercing the corporate veil. The court holds that these claims, if proved, are sufficient to hold the officer liable as a site owner under both CERCLA and the MERA. The court next holds that the state adequately alleged that the officer violated the WRCA by disposing of hazardous substances that are, or may become, injurious to the public into state waters without a permit. Moreover, the state sufficiently alleged that the officer was in control at the site. Finally, the court holds that corporate officers and directors of the company are liable for unlawful contamination under the WRCA if it is shown that, by exercising ordinary diligence, they knew or "should have known" of the contamination.

Counsel for Plaintiffs
Christopher D. Dobyns, Ass't Attorney General
Attorney General's Office
Law Bldg., 525 W. Ottawa St., P.O. Box 30212, Lansing MI 48909
(517) 373-1110

Counsel for Defendants
John D. Dunn, Devin S. Schindler
Warner, Norcross & Judd
900 Old Kent Bldg.
111 Lyon St. NW, Grand Rapids MI 49503
(616) 459-6121