Opinion ID: 700931
Heading Depth: 1
Heading Rank: 3

Heading: Failure to Reduce Civil Penalty

Text: 19 Next, the Defendants contend that the district court erred in refusing to reduce its civil penalty assessment by $60,000, the amount of a prior settlement between the State of Michigan and Marguerite Ladney, Michael Ladney's former wife. The district court determined that it was not obliged to reduce the amount of the civil penalty because, unlike the Defendants, Mrs. Ladney was never adjudicated to be liable for the RCRA violations at issue. J.A. at 148. Furthermore, the court relied on the Ladneys' divorce decree, which required Mr. Ladney to hold Mrs. Ladney harmless for the pollution problem at the Richland facility. Id. 20 The Defendants rely on case law that is misleading, and their argument is meritless. They only cite cases involving a cost recovery or contribution under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA), 42 U.S.C. Sec. 9601, but not a civil penalty assessment. See PPP Br. at 41 (citing United States v. Laskin, No. C84-2035Y, 1989 WL 140230 (N.D.Ohio Feb. 27, 1989); Edward Hines Lumber Co. v. Vulcan Materials Co., 669 F.Supp. 854 (N.D.Ill.1987); United States v. Conservation Chemical Co., 628 F.Supp. 391, 400 (W.D.Mo.1985), order modified by, 681 F.Supp. 1394 (W.D.Mo.1988)). These cases are inapposite to a RCRA civil penalty assessment. In the different context of CERCLA cost recovery actions, Congress logically specified a reduction in the potential liability of the others by the amount of the settlement. 42 U.S.C. Sec. 9613(f)(2). No analogous provision, however, exists under RCRA. Furthermore, these cases relate to reimbursement liability for the out of pocket response costs incurred by the government for responding to contamination. Such a case is irrelevant to the broad discretion judges have in assessing civil penalties under RCRA. 21 We hold that the district court did not abuse its discretion in refusing to reduce the Defendants' RCRA civil penalty by the amount of Mrs. Ladney's settlement with the State of Michigan.