ILLINOIS POLLUTION CONTROL BOARD
September 4, 1997
EDWARD M. PEARL,
Complainant,
v.
BIOCOASTAL CORPORATION, SINGER
CORPORATION AND EATON
CORPORATION,
Respondents.
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PCB 96-265
(Enforcement - Land)
ORDER OF THE BOARD (by J. Yi):
This matter is before the Board pursuant to a response to our order dated May 15, 1997
filed by complainant, Edward M. Pearl (Pearl or complainant). In our order of May 15, 1997
we stated the following:
The Board notes that the stay in this matter has been lifted for all parties
including Bicoastal and Singer. Neither Bicoastal nor Singer have been active
in this matter since a letter of October 16, 1996 and neither has joined in
Eaton's motions. In the letter, that was sent to the attorney of complainant, it
explained that the Singer changed its name to Bicoastal and that it filed for
Bankruptcy in United States Bankruptcy Court for the Middle District of
Florida. The Board notes that it has been unable to serve Singer while it has
served Bicoastal with the Board's previous orders in this matter and no
appearances have been filed. The Board directs complainant to file, along with
its response to Eaton's motions, reasons why Bicoastal and Singer should
remain as two separate respondents and whether either should remain as
respondents in this matter.
In response to our request complainant states that "it appears that because BiCoastal is
the former Singer Corporation, as between those two companies, BiCoastal is the correct
respondent." (Response at 3.) Complainant also asserts that the bankruptcy stay protects
BiCoastal from being served even though it may be responsible for contamination of the site.
Finally, complainant states that both respondents were named because of their potential joint
and several liability for the contamination and cannot recommend to the Board that it dismiss
the respondents, unless however, the Board finds that it should dismiss these parties based on
the bankruptcy stay.
The Board has attempted to address this issue of BiCoastal's Chapter 11 Bankruptcy
filing. In our order dated April 3, 1997 we noted the following:
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On October 16, 1996 respondent Bicoastal Corporation formerly known as
Singer Corporation copied the Board on a letter sent to complainant. The letter
indicates that Bicoastal Corporation filed a petition for Chapter 11 with the
United States Bankruptcy Court, Middle District of Florida, Tampa division on
November 10, 1989. There is no indication that Bicoastal intended the Board to
act on this letter. Therefore the Board will not act until Bicoastal directs an
appropriate motion to the Board. The Board notes that in certain circumstances
filing for bankruptcy is not always a defense to enforcement. (See People of the
State of Illinois v. Michel Grain Company, Inc. (August 1, 1996), PCB 96-143
and People of the State of Illinois v. Robert D. Fosnock (September 15, 1994),
PCB 94-1.)
The Board has received no filings from BiCoastal. There remains several outstanding issues
which need to be resolved before the Board may make a determination as to whether
conformation of a plan of reorganization by the United States Bankruptcy Court for BiCoastal
affects complainant's ability to bring this action against Bicoastal. The Board directs the
parties to file briefs on this issue on or before October 3, 1997, and reply briefs on or before
October 17, 1997.
IT IS SO ORDERED.
I, Dorothy M. Gunn, Clerk of the Illinois Pollution Control Board, hereby certify that
the above order was adopted on the 4
th
day of September 1997, by a vote of 7-0.
Dorothy M. Gunn, Clerk
Illinois Pollution Control Board