GPM Properties v. Union Oil Company of California
Published: Jan. 22, 1994 | Result Date: Dec. 9, 1993 | Filing Date: Jan. 1, 1900 |Case number: SEC71803 – $0
Judge
Court
L.A. Superior Norwalk
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Raymond N. Chace
(technical)
Glenn D. Tofani
(technical)
Ronald J. Lofy
(technical)
Defendant
Michael J. Sullivan
(technical)
Facts
In the early 1900s, Union Oil purchased a six and one-half acre property in Norwalk. Union Oil constructed a tank farm on the property which it operated until the mid-1950s. The tank farm was then removed, and the property became vacant. In 1967, Defendant Union Oil sold the property to Pentagon Investment Company which resold the property in 1986 to Plaintiff GPM Properties for $2,500,000. Plaintiff intended to construct a 160 unit apartment complex on the property. Allegedly, after purchasing the property, Plaintiff discovered the property was contaminated with several hundred thousand gallons of crude oil and contained numerous old abandoned pipelines. In addition, the contamination was hidden from view by a ten-foot layer of clean soil which Defendant Union Oil had placed on top of the property. Allegedly, due to the contamination, Plaintiff was allegedly unable to get construction financing and permits.
Settlement Discussions
Defendant contends they offered $250,000 with an indication of more, plus a hold harmless for Plaintiff's lender plus assistance in getting a building permit; and Plaintiff demanded $4,800,000 plus a hold harmless.
Damages
Clean-up costs of $4,000,000; lost profits of $2,000,000; Plaintiff also sought punitive damages.
Deliberation
2 days
Poll
11-1
Length
3 weeks
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