Landlord Fined $250K for Unregistered Bulk Petroleum Storage

March 31, 2010

LVT Number: #22561

The state Department of Environmental Conservation (DEC) imposed a fine of $250,000 against landlord for storing 2,000 gallons of unregistered petroleum in the basement of its building. Landlord appealed, claiming that DEC’s decision was unreasonable. The court ruled for landlord and reduced the fine to $100,000. DEC then appealed and won. The lower court lacked authority to reduce the penalty since it had dismissed landlord’s appeal as untimely. In addition, the original penalty didn’t shock the conscience.

The state Department of Environmental Conservation (DEC) imposed a fine of $250,000 against landlord for storing 2,000 gallons of unregistered petroleum in the basement of its building. Landlord appealed, claiming that DEC’s decision was unreasonable. The court ruled for landlord and reduced the fine to $100,000. DEC then appealed and won. The lower court lacked authority to reduce the penalty since it had dismissed landlord’s appeal as untimely. In addition, the original penalty didn’t shock the conscience. The fact that DEC had discussed reducing the penalty during settlement discussions wasn’t a basis on which to reduce the penalty.

Longwood Associates, LLC v. New York State Department of Environmental Conservation: NYLJ, 3/22/10, p. 25, col. 3 (App. Div. 1 Dept.; Mazzarelli, JP, Saxe, Nardelli, Abdus-Salaam, Roman, JJ)

Topics

More like this