Opinion ID: 853588
Heading Depth: 1
Heading Rank: 1

Heading: Relevant Facts and Procedural Posture

Text: The relevant facts in this case are largely undisputed. They were set forth by the Court of Appeals in the previous appeal: The undisputed facts reveal that Medical Disposal is an Illinois corporation duly admitted to do business in Indiana. Since 1989, Medical Disposal has collected and transported medical waste from Indiana to a medical waste facility in Grand Rapids, Michigan where the waste is disposed of by incineration. Medical Disposal operates small delivery trucks which retrieve medical waste from numerous health care providers and health care facilities in northwest Indiana. These trucks then transport the contained waste to a central site, leased by Medical Disposal, located at the IMK Truckstop in Hammond, Indiana. There, the containers are removed from the smaller trucks and loaded into the larger tractor trailers which then haul the waste to the incinerator facility in Michigan. In March 1994, the IDEM notified Medical Disposal that an inspection of the IMK Truckstop revealed that by transferring medical waste, Medical Disposal was operating a solid waste transfer station without acquiring a solid waste processing permit in violation of Indiana law. The IDEM ordered Medical Disposal to cease the transfer of the medical waste until a valid permit was obtained. In May 1994, Medical Disposal filed a complaint for a declaratory judgment, alleging that it was not in violation of the Indiana Environmental Management Act or any State solid waste regulations as its transport of medical waste did not include the transfer of solid waste and thus, was not subject to the permit requirements. Medical Disposal Services, Inc. v. Indiana Dept. of Envtl. Management, 669 N.E.2d 1054, 1056 (Ind.Ct.App.1996), trans. denied. Pending resolution of the lawsuit, [1] MDSI sought and obtained a temporary restraining order, and then a preliminary injunction, prohibiting IDEM from interfering with the operation of the facility. In its answer to the complaint, IDEM counterclaimed for civil penalties for MDSI's alleged violations. The trial court ultimately granted summary judgment in favor of IDEM, determining that MDSI had illegally operated a disposal facility for which a permit was required. The court ordered MDSI to cease all operations at the IMK Truckstop within five days and remain closed until it obtained all the proper permits. MDSI complied with the order and closed the IMK facility. The court did not reach the issue of civil penalties. On appeal, the Court of Appeals affirmed the summary judgment for IDEM, stating: [W]e determine that the trial court did not err in finding that by transferring infectious waste at the IMK Truckstop, Medical Disposal was transporting solid waste and operating a solid waste processing facility without the required permit in violation of Indiana law. Medical Disposal Services, 669 N.E.2d at 1060. This Court denied transfer. Medical Disposal Services, Inc. v. Indiana Dept. of Envtl. Management, 683 N.E.2d 589 (Ind.1997). On remand, the trial court set a hearing to address the issue of civil penalties. After a change of venue, MDSI moved for summary judgment, requesting that the trial court prohibit IDEM from imposing any penalties during the period of preliminary injunction. IDEM also moved for partial summary judgment, asking the court to determine as a matter of law that MDSI had earned over $400,000 in profit during the preliminary injunction period, and that those profits were the direct result of its illegal operations. IDEM asked the trial court to order MDSI to remit these allegedly ill-gotten gains as one component of an appropriate civil penalty. IDEM now asserts that it actually did not ask for summary judgment on civil penalties, believing that additional factual matters had to be adduced at trial before penalties could be assessed. (Appellant's Br. at 3-4.) The trial court granted MDSI's motion and denied IDEM's motion. As summarized by the Court of Appeals: [T]he trial court found that penalties would not be imposed because 1) the law governing the legality of the Hammond transfer station was not totally clear, and 2) a reasonable person could interpret the preliminary injunction to the effect that there would be no fine levied for acts occurring while the Order was in effect. (R. [at] 679-80). Accordingly, the trial court ruled that IDEM is foreclosed from assessing any type of civil penalty during the period wherein the Preliminary Injunction was in effect. (R. [at] 680). Indiana Dept. of Envtl. Management v. Medical Disposal Services, Inc., 700 N.E.2d 500, 502 (Ind.Ct.App.1998) (footnote omitted). IDEM appealed, and the Court of Appeals affirmed. This appeal ensued. We grant IDEM's petition to transfer.