ELR Citation: ELR 20866
No(s). 85-3060 (E.D. Pa. Aug 15, 1989)

The court approves a Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) settlement under which a bankrupt owner of the Ambler, Pennsylvania, waste disposal site will reimburse a small part of the response costs incurred by the United States, even though other defendants may have to bear a disproportionately greater share of the remaining costs. The settling defendant is in Chapter 11 bankruptcy and after liquidation, will be worth $1,500,000, which is less than its liabilities. The defendant agreed to reimburse the government for $900,000 in response costs—$550,000 from the defendant and $350,000 from its insurer. The court defers to the consent decree negotiated on behalf of a "specially equipped" federal administrative agency. Another defendant objected that the government settled too cheaply, thereby affording Nicolet unfair contribution protection. The court finds the settlement to have been negotiated at arm's-length and therefore determines that it is fair. The government conceded that this settlement constitutes only a modest percentage of the total response costs incurred at the site. However, the court finds that $900,000 is a substantial sum from a liquidating bankrupt with staggering liabilities. The settlement is thus reasonable and consistent with CERCLA's goals.

[Other decisions in this litigation are published at 17 ELR 21085, 21088, and 21091, 18 ELR 20845 and 21411, 19 ELR 21192, and 20 ELR 20864.]

Counsel listed at 20 ELR 20864.