Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
4d
ACTION ITEM
Date of Meeting
July 25, 2017
DATE: July 11, 2017
TO: Dave Soike, Interim Executive Director
FROM: Elizabeth Black, Senior Port Counsel
SUBJECT: Reichhold Bankruptcy Settlement
ACTION REQUESTED
Request Commission authorization for the Executive Director to enter into a settlement
agreement substantially similar to the draft attached in Exhibit 1 with Reichhold Holdings US,
Inc. (Reichhold), to settle claims in bankruptcy related to the cleanup of the Lower Duwamish
Waterway.
EXECUTIVE SUMMARY
Reichhold is a potentially responsible party liable for contamination on the Lower Duwamish
Waterway (LDW). Reichhold declared bankruptcy in 2014. As part of the bankruptcy
proceeding, there is an opportunity for the Port to recover a small portion of its past costs
(approximately $25,000) related to cleanup of contamination for which Reichhold was
responsible. Commission approval is required because the estimated amount of the Port’s claim
is greater than $300,000.
JUSTIFICATION
The bankruptcy proceeding is the Port’s only opportunity to recover past costs directly from
Reichhold. Because the bankruptcy estate is paying claims at only 5 cents on the dollar, the
benefits of settlement at this time outweigh the costs of pursuing the Port’s claim further.
DETAILS
Further details were presented by counsel in executive session on July 11, 2017. A draft
settlement agreement is attached.
FINANCIAL IMPLICATIONS
Revenue: Approximately $25,000.
ATTACHMENTS TO THIS REQUEST
(1) Draft Settlement Agreement
COMMISSION AGENDA – Action Item No. __4d__ Page 2 of 2
Meeting Date: July 25, 2017
Template revised September 22, 2016; format updates October 19, 2016.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
Briefing with counsel in executive session on July 11, 2017.
