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CONFIDENTIAL

Aug. 27, 2002

Torts
Property Damage
Negligence

Confidential

Verdict –  $0

Judge

James L. Wright

Court

L.A. Superior Long Beach


Attorneys

Plaintiff

Edward S. Beneville


Defendant

Steven J. Renshaw

James R. Rosen
(Rosen Saba, LLP)

Howard G. Smith
(Law Offices of Howard G. Smith)

Kyle A. Cruse
(Schmid & Voiles)

Kimberly Columbo


Experts

Plaintiff

Benjamin Ladinig
(technical)

Dale Hinkle
(technical)

Defendant

Greg Peale
(technical)

Matthew R. McCullough
(Winston & Strawn LLP) (technical)

L. Peter Petrovsky
(technical)

Facts

The plaintiff owned and operated an Atlantic Richfield Co. gas station, mini mart and mechanics garage on his
property in Long Beach.
Environmental assessments indicated ground water and soil contamination under the property.
In 1996, the city of Long Beach ordered the site to be cleaned up. The plaintiff contracted with defendant All
Environment Inc. (AEI), an environmental consulting and engineering firm to implement a decontamination
plan. AEI subcontracted the decontamination project to defendant BioTreatment Inc. (BTI).
In order to comply with federal legislation, the plaintiff was required to remove and replace his underground
storage tanks. The plaintiff contracted with defendant Kennedy to remove and replace his underground storage
tanks with double-walled tanks and to repave the station. Kennedy excavated, removed the old storage tanks
and installed new storage tanks. AEI installed pipes above and below the new storage tanks.
During the construction, the plaintiff's gas station canopy was destabilized and damaged. Kennedy's equipment
allegedly ran into the canopy.
After the construction was completed, the plaintiff re-opened his gas station on Aug. 10, 1998.
The concrete over the project site cracked and sank causing damage to the property and storage tanks. Kennedy
returned to the site to repair the site and the tank leak detection system. Sounding alarms indicated tank
leakage.
The plaintiff bypassed the automatic shut-off system which allowed the plaintiff to continue dispensing
gasoline.
Because of the suspected leakage, the bioremediation processes was stopped. Something caused extensive
damage to the property, which remains contaminated to this day.
According to defendant AEI, the damage was caused by concrete and soil settlement.
According to the plaintiff, the damage was caused by the leakage.

Damages

Plaintiff claimed damages totaling $460,000. Plaintiff claimed $242,000 for replacement and reinstallation of the underground storage tanks, $69,000 for replacement of the station canopy, and $34,000 for already incurred repairs. Plaintiff alleged $83,000 in lost profits and $16,500 in penalties for failure to meet his ARCO sales quota. Defendants argued that, if liable, the damages were limited to cost of repair of the canopy.

Result

The jury returned a verdict in favor of the defendants. A motion for nonsuit was granted in favor of BioTreatment Inc. at the close of the plaintiff's case.

Other Information

PLEASE PROVIDE THE CITY OF LOCALE OF EXPERTS: Peter Petrovsky __________, Matthew McCullough ___________, Greg Peale _________

Deliberation

one hour

Poll

12-0 (no negligence)

Length

10 days


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