ELR Citation: ELR 21457
No(s). s. K86-164, -167 (W.D. Mich. Nov 15, 1991)

The court upholds a consent decree resolving claims of the United States and Michigan against parties responsible for past response costs under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) at the Verona Well Field site in Battle Creek, Michigan. The Verona Well Field site is listed on the CERCLA national priorities list of hazardous waste sites presenting the greatest threat to public health and the environment. The decree awards judgments against the defendants of more than $9 million to the United States and more than $2 million to Michigan, plus interest, and it represents resolution of approximately 97 percent of the outstanding past costs. The court holds that the consent decree is fair and reasonable and was arrived at by the parties in good faith. The governments maintain that the allocation scheme will provide for a fair and complete distribution of the funds. The court observes that if amici parties disagree with the allocation, they may challenge the scheme in defending claims against them in another pending action. The court also holds that partial rescission of one insurance policy, in exchange for which insurer would pay an amount approximately equal to the aggregate limits of the rescinded policy, is proper under state law and not unfair to third-party beneficiaries. Finally, the court holds that the decree is in the public interest and furthers CERCLA's goals. The court notes that the defendants' stipulations relating to future liability will reduce the need for future litigation.

[Previous decisions in this litigation are published at 20 ELR 20109, 20684, and 20694.]

Counsel for Plaintiffs
Joel M. Gross
Environment and Natural Resources Division
U.S. Department of Justice, Washington DC 20530
(202) 514-2000

Frances McChesney
U.S. Environmental Protection Agency
401 M St. SW, Washington DC 20460
(202) 260-2090

Counsel for Defendants
Frederick J. Dindoffer, R. Craig Hupp
Bodman, Longley & Dahling
100 Renaissance Ctr., Ste. 3400, Detroit MI 48243
(313) 259-7777