Opinion ID: 701769
Heading Depth: 2
Heading Rank: 2

Heading: Allegedly Disproportionate Penalty

Text: 49 Ekco contends that the court abused its discretion in imposing a penalty significantly higher than penalties imposed against other owners/operators for similar violations. The penalties imposed in other cases are indeed relevant. See Sterling v. Velsicol Chem. Corp., 855 F.2d 1188, 1207 (6th Cir.1988) (civil damage awards 8 to 40 times award made in prior case excessive, and shocked judicial conscience). The reasonableness of a penalty, however, is a fact-driven question, one that turns on the circumstances and events peculiar to the case at hand. 50 Viewed in this light, the decisions relied upon by Ekco do not provide meaningful guidance. Ekco relies almost exclusively on EPA administrative cases, decided at the earliest stages of the enforcement process, in which violators were assessed penalties in the thousands-of-dollars range for violating financial responsibility requirements. 8 Ekco was in a position analogous to these violators in 1989 when it entered into a consent order requiring it to pay $55,478 for the violations cited in the administrative complaint. This case was brought several years later, following Ekco's continued default in its obligations under both the regulations and the consent order. 51 Ekco acknowledges that significantly higher penalties have been imposed in RCRA cases, 9 but contends that these cases are inapposite because the violations involved conduct that actively caused environmental harm. 10 In contrast, argues Ekco, its violations merely involved a failure to provide the EPA with financial documentation. Ekco's assessment of the relative seriousness of a violation of the financial responsibility regulations is questionable. These regulations are not mere paperwork requirements, and a party cannot comply by submitting a financial statement or other indicators of its net worth. The purpose of these regulations is to ensure that adequate funds are secured (through, e.g., a letter of credit, guarantee or liability policy) in the present to meet the future financial needs for closing a hazardous waste site and satisfying any third-party claims that might arise therefrom. A present violation of these regulations may significantly impair the ability to close and remediate the site when needed and to protect third parties from harm. This risk of future harm posed by a hazardous waste facility such as that owned by Ekco, found by the district court to present serious risks to human health and the environment, 11 is no less important a consideration than the risk of present harm caused by activities causing contamination. Thus, we are not persuaded that the district court imposed a penalty disproportionate to other RCRA penalties, and find no abuse of discretion. 52 We REVERSE the imposition of civil penalties pertaining to 40 C.F.R. Sec. 265.143, for the period June 25, 1990 to September 20, 1992; 40 C.F.R. Sec. 265.145, for the period June 25, 1990 to July 28, 1992; and 40 C.F.R. Sec. 265.147, for the period from September 29, 1992 to March 11, 1993. We REMAND to the district court for a redetermination of penalties for these time periods. In all other respects we AFFIRM.