USA v. Capital Tax Corp, et al

Filing 603

MEMORANDUM Opinion and Order: The Court grants the agreed motion 601 to approve the settlement agreement between defendant William Lerch and plaintiff United States of America and hereby approves the settlement. Signed by the Honorable George M. Marovich on 7/16/2015:Mailed notice(clw, )

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
UNITED STATES OF AMERICA,
Plaintiff,
v.
WILLIAM LERCH,
Defendant.

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) No. 04 C 4138
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) Judge George M. Marovich
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MEMORANDUM OPINION AND ORDER
Defendant William Lerch (“Lerch”) and plaintiff the United States of America (“US” or
the “government”) have filed an agreed motion to approve the settlement between them. For the
reasons set forth below, the Court grants the motion.
I.

Discussion
The United States originally filed this suit against Lerch, Stephen Pedi (“Pedi”) and

Capital Tax Corporation (“Capital Tax”) in an attempt to recover response costs under
CERCLA, 42 U.S.C. §§ 9607 & 9608. On August 1, 2007, on plaintiff’s motion for summary
judgment, the Court ruled that defendants Lerch and Capital Tax were jointly and severally
liable to the United States in the amount of $2,681,337.79. Six weeks later, on September 18,
2007, the Court entered a consent decree, pursuant to which defendant Pedi agreed to pay the
United States $330,000.00. This reduced the amount for which Lerch and Capital Tax were
jointly and severally liable. The same day, the Court entered final judgment against Lerch and
Capital Tax, jointly and severally, in the amount of $2,351,337.79. In addition, Lerch was liable
for a civil fine of $220,100.00 and a penalty of $23,100.00.

In the meantime, the government has collected some of the judgment. For example, after
an appeal, the government entered a consent decree with Capital Tax (and defendant Mervyn
Dukatt, who had, by that time, been added as a defendant to the case). They agreed to pay
$325,000.00, thereby reducing by $325,000.00 the amount for which Lerch was jointly and
severally liable. In addition, the United States has recovered $113,488.00 from Lerch.
The parties agree that the amount Lerch currently owes on the judgment is
$2,199,791.53. The parties, who have already engaged in significant post-judgment enforcement
proceedings, have agreed to settle for $350,000.00. Lerch and the government ask the Court to
approve their settlement, which would mean Lerch would not be liable for contribution with
respect to matters in the settlement. 42 U.S.C. § 9613(f)(2) (“A person who has resolved its
liability to the United States or a State in an administrative or judicially approved settlement
shall not be liable for claims for contribution regarding matters addressed in the settlement.”).
The amount Lerch has agreed to pay is consistent with what the other parties contributed, and the
Court approves the settlement.

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II.

Conclusion
For the reasons set forth above, the Court grants the motion [601] to approve the

settlement and hereby approves the settlement.

ENTER:

George M. Marovich
United States District Judge
DATED: July 16, 2015

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