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Real Property
Public Nuisance
"Submarine" Collision

Ultramar, Inc., a Nevada coporation v. Napa Sanitation District, et al.

Published: Jan. 11, 1997 | Result Date: Dec. 3, 1996 | Filing Date: Jan. 1, 1900 |

Case number: C944126SI –  $10,000

Judge

Susan Y. Illston

Court

USDC Northern


Attorneys

Plaintiff

Leonard C. Herr Jr.
(Herr, Pedersen & Berglund LLP)


Defendant

Charles P. Kuntz


Experts

Plaintiff

Robert D. Morrison
(technical)

Defendant

Winifred H. Curley
(technical)

Facts

Plaintiff Beacon Oil Company owned a service station in Napa. In 1991, the service station allegedly suffered damage as a result of an abandoned sewer system acting like a "French drain", whereby contamination from numerous other service stations was transported to the Beacon station. Beacon discovered the problem while it was in the process of an extensive renovation and remodel of it service station. Apparently, the sewer system, which was abandoned in the 1970s, had acted as a preferential pathway for almost 20 years. Defendant Napa Sanitation District oversaw construction of the sewer line and maintained it. The plaintiff brought this action against the defendant based on private and public nuisance, trespass, CERCLA and RCRA. theories of recovery.

Settlement Discussions

The plaintiff made a settlement demand for $120,000 (per the plaintiff) or $350,000 (per the defendant). The defendant made no settlement offer (per the plaintiff) or an offer of $50,000 (per the defendant).

Damages

The plaintiff sought damages for the cost of removing the system and for loss of use of property.

Other Information

The ruling was rendered approximately two years after the case was filed. The plaintiff claimed this case represents the first time a sanitation district has been held liable for environmental damage caused by abandoned equipment. Per the defendant, all of the plaintiff's damages claims were dismissed on summary judgment, or abandoned by the plaintiff and this the court ruled that 80' of abandoned pipe should be removed with the plaintiff paying 30% and the defendant 70%. $10,000 in incidental damages was 70% of one month's revenues of station. The court dismissed 5 causes of action, including all CERCLA and RCRA causes or action by summary judgment on Sept. 3, 1996. The plaintiff abandoned all damages claims before trial and proceeded on state nuisance and trespass claims for injunctive relief.

Deliberation

____ hours

Length

5 days


#101649

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