Source: http://www.bizjournals.com, October 27, 2015
By: Jeff Jeffrey

A 33-acre tract of land in Raleigh is at the heart of a lawsuit filed by a South Carolina electronics manufacturer against a 150-year-old specialty glass producer.

AVX Corp. (NYSE: AVX) is suing New York-based Corning Inc. (NYSE: GLW) over allegations that Corning failed to adequately prevent toxic chemicals from seeping into groundwater located on a parcel of land in northeast Raleigh. The land is located at 3900 Electronics Drive.

The dispute dates back to 1987, when AVX purchased the land from Corning. The latter had a manufacturing facility there for nearly 25 years.

According to AVX’s complaint, which was filed in federal court in Raleigh, an injection well installed on the property by Corning allegedly caused hazardous substances to leak into nearby groundwater. AVX alleges Corning knew of the environmental impacts at the time of the land sale and that the company agreed to take steps to mitigate the damage.
Analysis of the groundwater allegedly found trichloroethylene, tetrachloroethane, toluene and other volatile organic compounds in the groundwater located near the well.
In 1991, Corning installed a pump and treat groundwater remediation system on the property to clean up the chemicals that had allegedly seeped into the groundwater.
However, AVX says in the complaint that despite those efforts, environmental studies of the area “regularly indicate the presence of hazardous substances and other constituents in the soil and groundwater” and that the pollution appears to be moving east from the well. AVX claims that under the terms of sale, Corning retains responsibility for any environmental effects on the property.
The issue appears to have come to a head in March, when AVX tried to sell a portion of the land to a developer working with the Wake County Board of Education for the Board, which wanted to put a public high school on the property. That deal allegedly fell through because of the pollution on the property.
The complaint says Corning entered into a voluntary agreement with the N.C. Department of Environmental Quality in September, under which Corning will work to address pollution on an 11-acre section of the property. However, AVX says the agreement does not cover the remaining 22 acres of the property.
AVX’s complaint accuses Corning of violating the federal Comprehensive Environmental Response, Compensation and Liability Act, breach of contract and negligence among other claims. AVX is seeking a court order holding Corning liable for the alleged pollution as well as an unspecified amount of damages.
AVX is represented by a team of lawyers from Parker Poe Adams and Bernstein in Raleigh.
Corning has not filed a response to the complaint and no attorneys have entered an appearance on the company’s behalf. A spokesman for Corning says company officials are aware of the complaint.