Through strategic collaboration, insurance recovery, and a targeted remediation approach, EnviroForensics helped a dry cleaning facility navigate complex environmental liabilities. This case underscores the importance of proactive insurance documentation and expert environmental consultation in achieving successful remediation, compliance, and regulatory site closure.
Background
A dry cleaning facility in South Bend operated from 1972 through July 2017, during which time perchloroethylene (PCE) was used in the dry cleaning process. This resulted in both on-site and off-site soil and soil vapor contamination.
To protect himself, the dry cleaning operator, a sophisticated businessman, commissioned a Phase II Environmental Site Assessment (ESA) through an environmental firm. The Phase II ESA identified the dry cleaner as a potential source of contamination.
While the operator informed the property owners about the Phase II ESA, the owners did not report the findings to the Indiana Department of Environmental Management (IDEM). Instead, they sought legal counsel for guidance on the matter.
The Challenge
The dry cleaning operator was familiar with EnviroForensics through our industry expertise, published articles, and active involvement with dry cleaning associations. Impressed by our experience, he engaged us to help manage the environmental liabilities and guide the insurance recovery process. We collaborated closely with the operator, the property owner, and their attorney.
A key advantage in this case was the dry cleaning operator’s meticulous record-keeping. He had retained full insurance policies from the time he owned the business, allowing us to construct a comprehensive insurance coverage chart. Convincing their legal counsel that historical insurance policies could serve as a financial safety net took time, but ultimately, we demonstrated that reporting the contamination to IDEM was a manageable risk.
In January 2012, IDEM issued a Special Notice of Liability, prompting us to notify all relevant insurance carriers. The documented insurance coverage allowed for a strong defense of the claim, with multiple carriers stepping in to provide coverage.
The Solution
Remedial actions were implemented to address the contamination, including a soil vapor extraction (SVE) system. This system effectively reduced chlorinated solvent concentrations in on-site and off-site soils, bringing levels below IDEM’s Soil Migration to Groundwater Screening Levels. The remediation efforts successfully mitigated soil vapor risks beneath the buildings, ensuring a safer environment for future site use.
Due to the cleanup efforts, the business operator could sell the business to another dry-cleaning operator, who transitioned the location to a drop shop, with all dry cleaning machines removed. In 2025, the site received a No Further Action letter from IDEM. Case closed.
