Department of Toxic Substances Control v. Lisa Marie Rossi, an individual

Background

The California Department of Toxic Substances Control brought claims under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), a federal environmental cleanup law, and supplemental California-law claims concerning the release or threatened release of hazardous substances at the E-D Coat Site. The Department sought recovery of past and future cleanup-related costs, declaratory relief, permanent injunctions requiring response actions and site access, and civil penalties for failure to comply with Department orders.

The judgment defines the defendants as Lisa Marie Rossi, Gerald F. Rossi, Lee Doslak Florance, Patricia S. Rossi, and E-D Coat, Inc. The E-D Coat Site consists of specified properties in Oakland, California, and associated soil and groundwater contamination. On August 24, 2022, the court found the defendants in contempt and determined that it would enter default judgment. The later proceedings addressed the injunction’s terms, past costs, future-cost liability, and civil penalties.

Judgment for Past and Future Costs

The court found the defendants jointly and severally liable for $801,719.58 in past response costs and entered judgment for that amount in favor of the Department. The defendants were ordered to pay within 30 days after the judgment’s effective date.

The court also declared that the defendants are responsible or liable parties under CERCLA and jointly and severally liable, without regard to fault, for future response costs incurred by the Department arising from or related to the E-D Coat Site. The Department was ordered to provide quarterly bills, and unless challenged under the stated dispute process, the defendants must pay those bills within 30 days after receiving them.

Permanent Injunction

The judgment requires E-D Coat, Inc.; Lisa Marie Rossi; Gerald F. Rossi in the capacities specified in the judgment; and Patricia S. Rossi as trustee of the Rossi Family Trust II to carry out the response actions identified in the attached Scope of Work. The work must comply with applicable California and federal laws and regulations and remain subject to the Department’s review and approval.

The injunction also requires defendants to designate project personnel, provide reports and other deliverables, preserve and provide relevant records, notify the Department about sampling, and maintain a repository of information. Defendants who own affected property must provide the Department and its authorized agents physical access at reasonable times. They must also cooperate with required institutional controls, give advance notice of certain sales, and use best efforts to obtain access from other owners or tenants when needed for the cleanup.

Civil Penalties and Enforcement

The court imposed civil penalties based on its stated findings that the specified defendants’ failures to comply with the Department’s orders were knowing, chronic, and willful and presented the potential for major harm. The penalties were:

- E-D Coat, Inc.: $2,057,000. - Lisa Marie Rossi: $2,057,000. - Gerald F. Rossi individually: $2,057,000. - Gerald F. Rossi as trustee of the Rossi Family Trust II: $1,267,000. - Patricia S. Rossi as trustee of the Rossi Family Trust II: $1,267,000.

The applicable defendants were ordered to pay their respective penalties within 30 days after the judgment’s effective date. Interest accrues on late payments under California law, and the court warned that failure to pay or comply with the judgment could result in contempt sanctions. The court retained jurisdiction to enforce, resolve disputes under, and modify the judgment.