Lawsuits Filed
In a collaborative effort to address the environmental impact left by Closed Loop Refining and Recovery in Phoenix, three e-scrap companies have been ordered to contribute a total of $2.2 million for the cleanup of abandoned CRT materials. A group of industrial property owners filed lawsuits against the three companies due to their involvement in over 100 million pounds of CRT residuals that were initially collected and then left by Closed Loop.
In the wake of Closed Loop’s downfall, the electronics recycling industry has learned a valuable lesson about the consequences of shipping toxic components without due diligence. This cautionary tale has already resulted in numerous lawsuits against nearly 100 electronics recycling companies, original equipment manufacturers (OEMs), and other entities involved in the improper disposal of CRT materials. Additionally, these legal actions have led to hefty settlements, totaling millions of dollars with the cleanups stemming from these illegal shipments spanning over seven years, much of which has ended up in landfills.
Monitor and CRT Recyclers of California’s Involvement
One of the companies involved in the recent settlements was Monitor and CRT Recyclers of California, an e-scrap company based in Riverside, California. The firm was responsible for shipping 25.6 million pounds of CRT materials to the sites, which were later left unattended. This amount far surpassed the weight sent by any other defendants still in the case.
After reviewing the case on November 1st, a judge granted approval to the settlement documents submitted by the attorneys, outlining the financial obligations of the parties involved. Monitor and CRT Recyclers of California were required to pay a total of $1.94 million, while GEEP Canada/GEEP USA had to pay $240,000 for shipping 4.14 million pounds. Phoenix-based Global Electronic Recycling (GER) was also required to pay $25,000 for sending just over 15,000 pounds.
In an agreement outlined in official records, Monitor and CRT Recyclers of California have decided to divide their total amount into five equal installments of more than $387,000 each, with payments being made on an annual basis. Also, in terms of shipped weight, Monitor and CRT Recyclers of California ranked second, just behind IMS Recycling, who sent 72.49 million pounds. And, earlier this year, IMS reached a settlement of $5 million to be removed from the ongoing case.
The Status of the Case
Back in October of 2022, the lawsuit was initially filed by the owners of the Phoenix warehouses against 49 defendants. Currently, the case is being reviewed in the U.S. District Court located in Arizona.
To date, ten defendants have successfully resolved their legal disputes by reaching settlements and collectively contributing $10.27 million. The payments made by these defendants have differed on a per-pound basis, with smaller shippers often paying significantly higher rates. However, the majority of settlements have averaged out to either 7 or 8 cents per pound and the disposal of the material has been primarily directed towards landfills.
There are still 39 defendants involved in the ongoing case, as the warehouse owners claim that they have shipped a total of 44.85 million pounds. The estimated cost of the Phoenix cleanup project, according to the plaintiffs, is expected to reach $15 million.
Also, in a parallel legal dispute that stretched over multiple years in Columbus, Ohio, a case resembling the Arizona situation unfolded. The defendants in this federal court case eventually reached a resolution, agreeing to disburse more than $16 million in settlements to support the remediation efforts of the warehouses. The final cleanup was successfully concluded in August of 2022.
