Jennifer M. Granholm ex rel Michigan Department of Environmental Quality v Fort Gratiot Sanitary Landfill, Inc.
On September 10, 1999, the court entered a Consent Decree between the Michigan Department of Environmental Quality (MDEQ), Fort Gratiot Sanitary Landfill, Inc. (Fort Gratiot), and Arthur and Ann White (Whites). The Consent Decree resolved numerous violations of Part 115, Solid Waste Management, and Part 17, Michigan Environmental Protection Act (MEPA), of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended (NREPA), as alleged in the November 1, 1996 lawsuit filed by the Department of Attorney General (DAG) on behalf of the MDEQ. In the way of background, on October 17, 1997, the court issued an order granting the state’s motion for summary disposition (Court Order) which required Fort Gratiot to, among other things, remediate the leachate problems at the landfill; conduct remedial activities regarding soil, surface water, and groundwater contamination as needed; and conduct post-closure activities and provide financial assurance to the state for post-closure monitoring and maintenance. After the Court Order was issued, post-judgment discovery was conducted by the DAG, and it was determined that the only asset of value held by Fort Gratiot was approximately $680,000 held in a trust account. It was also determined that there was an outstanding claim against Fort Gratiot in the approximate amount of $56,237,000 including principal and interest, on two mortgage notes issued by Fort Gratiot and held by the Whites.
Under the terms of the Consent Decree, Fort Gratiot would initially pay $150,000 to the MDEQ to be applied toward post-closure monitoring and maintenance of the landfill and $450,000 to the Whites. The remaining funds in the trust account would be distributed 50% to the DEQ in full settlement of its Part 115 and MEPA claims as alleged in the lawsuit and 50% to the Whites after a period of 120 days, during which time Fort Gratiot would wind up its affairs (i.e., pay outstanding tax claims, bank charges relating to the trust account, etc.). The Consent Decree also required Fort Gratiot to relinquish any and all rights, title, or interest that it may have received at any time from the MDEQ, the Michigan Department of Natural Resources (MDNR), or any other agency of the State of Michigan to construct or operate a solid waste disposal area or facility in Section 16, Fort Gratiot Township, St. Clair County, Michigan under the terms and provision of any permit, license, final order, or solid waste management plan approved or issued by the MDNR or the MDEQ or any other agency of the State of Michigan.