Confidential
Settlement – $825,000Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Michael H. Gottschlich
(Barnes & Thornburg LLP)
Facts
The plaintiff owned property and leased it to tenants who operated a gas station. In April 1984, one of the
underground gasoline storage tanks on the property ruptured. The regional water quality control board issued a
cleanup and abatement order requiring the plaintiff to investigate and fix the soil and ground water
contamination.
According to the defendant, the plaintiff applied to the board for state funds to assist in the clean-up of his
property.
The plaintiff alleged that the defendant advised and instructed the plaintiff not to disclose to State Water
Resources Control Board (SWRCB) anticipated settlement proceeds from his insurance carriers.
After receiving the settlement funds in October 1994, the defendants had the plaintiff sign a revised
certification disclosing the full amount of the settlement. The plaintiff relied on the defendantÆs promise to
timely submit the revised certification.
According to the defendant, the revised certification was submitted to the board in October 1994.
The plaintiff subsequently learned that between August 1994 and August 1995, the defendants received six
requests by the Underground Storage Tank Cleanup Fund (Fund) for a new certification and that it would not
further process any of plaintiffÆs reimbursement requests until it received the revised certification.
In November 1995, the defendant again submitted the revised certification. In April 1996, the Fund determined
that the plaintiff was overpaid by $464,109.
From June 1996-1998, the plaintiff was involved in a series of administrative proceedings and hired new
counsel.
In late 1998, the Office of the State Attorney General filed a complaint against the plaintiff alleging violation of
the false claims act. The plaintiff paid $1.2 million to settle the stateÆs case.
Other Information
<M>A mediation was held before Hon. Robert W. Thomas, retired.</M>
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