ILNews

Reversal: Neighbors may intervene in environmental cleanup case

Back to TopCommentsE-mailPrintBookmark and Share

Businesses neighboring an Indianapolis industrial property that was forced to clean up hazardous chemicals were improperly shut out of litigation involving the city and state, the Indiana Court of Appeals ruled Monday.

In Moran Electric Service, Inc., and Threaded Rod Company, Inc. v. Commissioner, Indiana Department of Environmental Management, City of Indianapolis, Ertel Manufacturing Corp., 49A02-1305-MI-432, the panel ruled Moran and Threaded Rod have an immediate and direct interest in the proceedings and that Marion Superior Judge Michael Keele erred in determining the court didn’t have subject matter jurisdiction. The panel remanded the matter for further proceedings.

The lawsuit involves environmental cleanup ordered for the Ertel property and litigation dating to 2008, when Indianapolis sued Ertel to recoup the environmental cleanup costs. The former industrial property in the Martindale-Brightwood neighborhood was contaminated with lead, petroleum, asbestos, PCBs and other toxins.

As the cleanup proceeded along administrative and court tracks, Ertel, the city and state settled, and the court approved. Insurance ultimately provided $1 million. Of that, $140,000 reimbursed Indiana Department of Environmental Management for its cleanup fees, and $860,000 was placed in escrow for contingencies. IDEM in 2012 released $846,000 to the city for future cleanup costs.

Moran and Threaded Rod claimed IDEM’s settlement with Ertel required the agency to address contaminants that flowed from the Ertel site onto their properties, but the court denied their motions to intervene.

“The heart of the issue is whether the trial court properly ordered the remaining $846,000 in funds distributed to the City, which is dependent upon whether IDEM properly issued a (No Further Action) Letter regarding the Ertel property,” Judge Michael Barnes wrote for the panel.

“The current parties of the two civil actions are IDEM, the City, Ertel, and various insurance companies. Ertel, having been released from liability, has no incentive to represent Appellants’ interests. IDEM’s and the City’s interests in issuing the NFA Letter and distributing the remaining escrowed funds to the City, also appear to conflict with Appellants’ interests in using the remaining escrowed funds to remediate Appellants’ properties,” Barnes wrote.

“Consequently, we conclude that the representation of Appellants' interests by the existing parties is inadequate. In sum, we conclude that the trial court abused its discretion by denying Appellants’ motions to intervene.”


 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. He did not have an "unlicensed handgun" in his pocket. Firearms are not licensed in Indiana. He apparently possessed a handgun without a license to carry, but it's not the handgun that is licensed (or registered).

  2. Once again, Indiana's legislature proves how friendly it is to monopolies. This latest bill by Hershman demonstrates the lengths Indiana's representatives are willing to go to put big business's (especially utilities') interests above those of everyday working people. Maassal argues that if the technology (solar) is so good, it will be able to compete on its own. Too bad he doesn't feel the same way about the industries he represents. Instead, he wants to cut the small credit consumers get for using solar in order to "add a 'level of certainty'" to his industry. I haven't heard of or seen such a blatant money-grab by an industry since the days when our federal, state, and local governments were run by the railroad. Senator Hershman's constituents should remember this bill the next time he runs for office, and they should penalize him accordingly.

  3. From his recent appearance on WRTV to this story here, Frank is everywhere. Couldn't happen to a nicer guy, although he should stop using Eric Schnauffer for his 7th Circuit briefs. They're not THAT hard.

  4. They learn our language prior to coming here. My grandparents who came over on the boat, had to learn English and become familiarize with Americas customs and culture. They are in our land now, speak ENGLISH!!

  5. @ Rebecca D Fell, I am very sorry for your loss. I think it gives the family solace and a bit of closure to go to a road side memorial. Those that oppose them probably did not experience the loss of a child or a loved one.

ADVERTISEMENT