After setting up new locations in Texas, N. O. Smelz, owner of Smelz Rug Cleaning, obtained a hazardous waste permit from the Texas Commission on Environmental Quality for the disposal of the company’s cleaning chemicals after use. In addition to the permit, the TCEQ issued a compliance plan to Smelz. Because he was too busy managing the financial side of the company, N.O. delegated oversight and implementation of the compliance plan to Wright Handman. Compliance is running smoothly for about a year, but business is growing quickly and Handman doesn’t have time to train Rhule Brecker, a new carpet cleaning technician. In fact, Handman never trains Brecker. During Brecker’s second year on the job, Handman sees that Brecker is pouring the used cleaning chemicals into a storm drain on the street, which violates the compliance plan. Two weeks later, Smelz gets a notice from TCEQ that it believes Smelz is violating the compliance plan and that an investigation will be conducted. Brecker fesses up, and Handman also admits he didn’t train Brecker properly. TCEQ sues Smelz, Handman and Brecker for civil penalties of $50 per day for failing to properly implement the compliance plan. Are Handman and Brecker personally liable to the State?
Continue Reading Would You Please Oversee the Company’s Environmental Cleanup Program? Oh Yeah, if it Fails, You’re Personally Liable