Judge Denies Request to Put Rhode Island Recycled Metals in Receivership

Neronha also said his office will continue to watch the scrapyard closely.

SEATTLE (Scrap Monster): A Rhode Island Superior Court judge has authorized more oversight of an embattled Providence scrapyard, but not as much as state regulators wanted.

Judge Brian Stern’s Dec. 13 decision comes more than five months after a fire broke out at Rhode Island Recycled Metals, prompting the Rhode Island Office of the Attorney General to ask the court to shutter the Allens Avenue business and force it into court-appointed receivership.

The Allens Avenue scrapyard has faced safety and environmental concerns for nearly all of its 15-year existence along the Providence River. The company has been under supervision of a court-appointed special master — a step down from receivership — since 2016 for a series of missing permits related to stormwater and remediation of potentially hazardous chemicals in its soil. After the July 10 blaze, the second fire at the site this year, Neronha in a series of court filings argued that the special master arrangement was not enough to overcome a continued pattern of violations, raising concerns for the health and safety of the mostly low-income, minority neighborhood that surrounds it.

 Two days after the fire, Stern granted Neronha’s request for a temporary shutdown of the scrapyard, but allowed the business to reopen in early August with additional safety protocols, including a new fire suppression system, in place. 

Meanwhile, the permanent proposal for receivership remained in limbo, with a flurry of filings from Neronha’s office and the company over the last five months arguing for, and against, the total court-appointed control.

Stern’s 16-page decision Friday ends the back-and-forth, denying Neronha’s push for receivership but granting the special master expanded oversight over an environmental remediation and permitting application already under review by the Rhode Island Department of Environmental Management (DEM).

“The process now appears to be approaching the finish line, and the delay does not justify the extraordinary remedy of a Receiver,” Stern wrote. “Environmental concerns remain present, but these same concerns existed when the Special Master was first appointed, and the Plaintiffs have not shown that the current circumstances at RIRM require the appointment of a Receiver. Further, Plaintiffs have not demonstrated that the Special Master is unable to adequately address these concerns.”

 Rhode Island Recycled Metals, which protested the receivership, celebrated Stern’s decision as a victory.

“RIRM applauds the decision by the Court to reject the State’s Motion to Place RIRM into receivership and force RIRM to cease operations,” Patrick Sweeney, a company spokesperson, said in a statement on Friday. “This ruling now brings to a close nearly nine years of legal challenges in which the State attempted to usurp and interfere with the owners’ right to manage and develop their property, which included submitting appropriate environmental applications.”

Rick Land, the existing special master, recommended in a Nov. 4 report to the court — part of mandated updates on the company’s compliance with safety measures — to expand his role to oversee the company’s pending applications with DEM for an environmental cleanup plan. Rhode Island Recycled Metals indicated its support for Land’s proposal.

While Neronha’s office lost its case for receivership, he too framed Stern’s decision in a positive light.

“Today’s decision represents a hard-fought victory for environmental protection and for the health and safety of RIRM’s surrounding communities, and I am grateful to Judge Stern for his thoughtful and thorough decision on this matter,” Neronha said in a statement on Friday. “While we still believe that a full receivership is the best path forward, we are encouraged by the significant additional safeguards provided by this decision.”

Per Land’s recommendation, Stern also ordered the scrapyard to take intermediary environmental remediation steps within the next 10 days, including covering the middle third of the 12-acre site with a 4-inch layer of asphalt to keep potentially harmful metals from leaching out into the stormwater or surrounding land. The long-term plan submitted to DEM in February calls for a permanent cap on the land, along with a separate stormwater management system.

Stern in his decision acknowledged the company’s history of noncompliance with state and federal environmental protections, which prompted regulators to seek court intervention a decade ago. 

The Court wishes to make clear that RIRM is operating on a short leash, and the Court expects that this path to compliance will be complete in the near future,” Stern wrote.

Neronha also said his office will continue to watch the scrapyard closely.

“Rhode Island Recycled Metals has long caused significant harm to the residents of South Providence, and more or less gotten away with it, for over 10 years,” Neronha said. “That stops now. We will continue to be vigilant in ensuring RIRM’s environmental compliance at this site and with this new Order, and we certainly won’t hesitate to take further action if necessary.”

Meanwhile, DEM is still reviewing the proposed improvement plan, following a Dec. 3 public hearing — the second since the fire, with a previous meeting in August devolving into a shouting match between residents and the scrapyard’s attorney. Written comments on the site cleanup plan and future uses can be submitted to the agency through Dec. 23, with more information available online.

After the public comment period ends, DEM will issue its decision letter, requiring a more detailed remediation plan, Evan LaCross, an agency spokesperson said. There is no firm deadline for when the decision is expected.

Separately, a $25,000 fine issued by DEM in December 2023 against the company remains under review because the scrapyard appealed the fine.

 Courtesy: www.rhodeislandcurrent.com

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