Chicago — Attorney General Kwame Raoul has filed a lawsuit against V Covington Realty LLC, V Covington LLC, Reed Illinois Corporation, K.L.F. Enterprises Inc., and Alliance Environmental Control Inc. The lawsuit concerns the alleged improper handling and removal of asbestos-containing materials during the demolition of Lake Behavioral Hospital in Waukegan, Illinois.
In addition to filing the complaint in Lake County Circuit Court, Raoul has sought an interim order requiring V Covington Realty LLC and V Covington LLC to submit a plan for decontaminating the site and safely completing the demolition as mandated by law.
“The owners and operators of Lake Behavioral Hospital and the contractors they hired for this demolition have jeopardized public health by exposing people to dangerous materials containing asbestos,” Raoul stated. “The asbestos must be remediated, and I am committed to ensuring that the defendants are held accountable for creating this hazard and for preventing any further harm to the public’s health and the environment.”
The site in question comprises three buildings no longer in use but connected to a medical campus open to the public. Demolition activities ceased in November 2023. At the time of Raoul’s complaint, one building had been fully demolished, another partially demolished, while work on the third had not commenced. The lawsuit alleges that defendants failed to properly inspect for asbestos before starting demolition activities, leading to its release into the air. Additionally, it claims that they did not correctly dispose of asbestos-containing materials or provide required notice before beginning demolition without a trained on-site representative.
There is no known safe exposure level to asbestos; inhalation can cause serious illnesses such as malignant lung cancer, mesothelioma, and asbestosis.
Raoul’s lawsuit follows a referral from the Illinois Environmental Protection Agency (IEPA). "Following complaints received about the site, Illinois EPA conducted a thorough inspection and determined there was improper handling of asbestos during the demolition," said IEPA Director John J. Kim. "As a result of our investigation, work was ordered to cease at the site, and the matter was referred to the Attorney General’s Office for enforcement."
The IEPA has required securing the site with 24-hour security along with wetting down demolition material. A cleanup plan has been submitted by IEPA for review.
Raoul also sought court approval for an agreed interim order requiring defendants to secure facilities per IEPA standards; refrain from removing items without prior written approval from IEPA; prevent further discharge or release of asbestos; hire an Illinois-licensed professional for complete facility inspection; submit decontamination plans; and provide records related to asbestos release.
Lake County State’s Attorney Eric Rinehart's office assisted with this lawsuit. “Everyone deserves to live in a safe and healthy community,” Rinehart said. “Our office will work diligently with the Attorney General and IEPA to hold corporations accountable.”
This lawsuit is part of Raoul's broader efforts against environmental violations in justice communities through his Environmental Enforcement Division.
Assistant Attorneys General Taylor Desgroseilliers, Ann Marie Hanohano, and Christina Haddad Scanlon are managing this case.
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