Confidential
Settlement – $2,100,000Facts
The defendants and their predecessors leased the plaintiffs' property for a service station from January of 1964 through March of 1990. Under the terms of the lease, the defendants were required to indemnify the plaintiffs for any liabilities and obligations arising from the defendants' operations on the property. During the term of the lease, gasoline was released from the underground storage tank system on the property, contaminating the soil and groundwater on the property and in the surrounding area. The plaintiffs alleged that the defendants were aware of the contamination prior to the expiration of the lease term but failed to notify the plaintiffs who learned of the contamination from a third party approximately one week prior to the termination of the lease. The defendants disclaimed any responsibility to clean up the contamination or to pay the plaintiffs any damages. The defendants commenced soil remediation about the time that the lawsuit was filed. The plaintiffs brought this action against the defendants based on breach of contract, negligence, waste, violation of Health and Safety Code º25359.7, private nuisance, public nuisance, tresspass, implied equitable indemnity, violation of Health and Safety Code º25249 (Proposition 65), fraud, unfair business practices, negligent interference with prospective business advantage, quantum meruit, and declaratory relief theories of recovery.
Settlement Discussions
The settlement discussions were not disclosed.
Damages
The plaintiffs sought damages for costs incurred in investigating the contamination, diminution in the value of the property, lost rents and attorney's fees and expenses to enforce the terms of the lease. The plaintiffs also sought declaratory relief by way of an order requiring the defendants to clean up the contamination.
Other Information
The settlement was reached approximately three years and seven months after the case was filed.
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