Facts

This lawsuit arose from a real estate transaction in which plaintiffs, Adel and Muntaha Somo, purchased a commercial property in 2004. At the time of the purchase, the property was being leased by defendant Chevron and used as a Chevron service station.

Plaintiffs claimed that, after buying the property, they learned it had been contaminated in or around 1995 and had not yet received a closure letter from the San Diego County Department of Environmental Health ("DEH"). A closure letter is issued by the county when the county is satisfied that human health, water resources, and the environment are adequately protected.

Prior to this trial, plaintiffs settled their claims with all other defendants, including the seller and previous owner. The only remaining defendant was Chevron Products, U.S.A.

PLAINTIFF'S CONTENTIONS:
Plaintiffs contended that the seller failed to disclose such information to them and conspired with a previous owner of the property to withhold such information.

Plaintiffs also contended that Chevron violated environmental laws and breached its lease obligations to plaintiffs by polluting the property and failing to resolve the county order and get the closure letter before the end of the lease so that plaintiffs could make unrestricted use of their property. Plaintiffs further contended that Chevron remained a tenant on the property after the lease expired on Feb. 28, 2005, but refused to pay any rent or property taxes.

Plaintiffs maintained that Chevron interfered with plaintiffs' attempts to sell the property and that Chevron intended to financially ruin plaintiffs by destroying the existing service station and leaving plaintiffs with a vacant, contaminated lot.

DEFENDANT'S CONTENTIONS:
Chevron disputed plaintiffs' claims. Chevron contended that plaintiffs knew, or should have known, that the property had been contaminated. Chevron also contended that it diligently worked towards and obtained a closure letter. Chevron further contended that removing the improvements on the property was within its rights. Finally, Chevron contended that plaintiffs' claims of being damaged and unable to sell or develop the property were without merit.

Settlement Discussions

Defendant made a CCP 998 offer to plaintiffs in the amount of $275,000.

Other Information

Plaintiffs were seeking $2.1 million from Chevron.

Deliberation

six days

Length

three weeks