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NCR to receive $93M following appeals court win in Fox River cleanup case

The court overturned rulings that had held NCR 100 percent liable for cleanup costs related to the production of carbonless copy paper from 1954 to 1972.

October 1, 2014

In a pair of press releases over the past week, NCR Corp. announced two wins related to litigation over Fox River cleanup costs.

In an announcement last Friday, the company said that the Seventh Circuit Court of Appeals had overturned summary judgment rulings from 2009 and 2011 that had held NCR 100 percent liable for cleanup costs related to the production of carbonless copy paper at Fox River facilities from 1954 to 1972.

The court also vacated the declaratory judgment finding NCR jointly and severally liable in the U.S. Government's enforcement action and remanded the case for further consideration of NCR’s divisibility defense.

In addition, the court vacated the permanent injunction that had been entered against NCR ordering it to remediate the Fox River. 

Finally, the Seventh Circuit upheld the ruling in NCR’s favor finding that NCR does not have so-called “arranger liability” at the Fox River.

In a second announcement NCR said it had entered into a funding agreement with Appvion Inc. (f/k/a Appleton Papers Inc.), Windward Prospects Ltd., B.A.T. Industries p.l.c., and BTI 2014 LLC (a subsidiary of B.A.T.) with respect to the Fox River and certain future sites.

Under the Funding Agreement, NCR received an aggregate of more than $93 million from BAT, Windward and Appvion on Sept. 30 towards Fox River costs incurred by NCR from April 2012 through Oct. 1, 2014.

Under the agreement, NCR also will receive 50 percent of Fox River costs paid or incurred after Oct. 1.

The parties have agreed to pursue claims they may have against third parties related to Fox River and any future sites, which could result in additional payments to NCR in excess of the fifty percent.