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Real Property
Commercial Property
Environmental Contamination

Crone v. Verhoeven

Published: Dec. 3, 1994 | Result Date: Nov. 10, 1994 | Filing Date: Jan. 1, 1900 |

Case number: VC014650 –  $95,900

Judge

William J. Birney

Court

L.A. Superior Norwalk


Attorneys

Plaintiff

Arden B. Silverman

Steven L. Mazza
(Carpenter, Zuckerman & Rowley LLP)


Defendant

Joseph Choate Jr.


Experts

Plaintiff

Ramesh J. Shah
(technical)

Facts

Early in 1992 an escrow was opened for the sale of commercial property from Defendant to Plaintiff. Plaintiff demanded an environmental study on the property. The Defendant was the owner of a larger tract, a portion of which was divided and sold to Plaintiff. Plaintiff purchased the land to operate his truck repair and paint business. A Phase-I environmental study report was conducted indicating there may be some problems. Plaintiff was not supplied with a copy of the report, until after the close of escrow. After the close of escrow, Plaintiff discovered the existence of an underground tank on the property. Plaintiff purchased the land for $410,000 of which $80,000 was a cash down payment; and the Defendant seller carried the balance. On the eve of trial, Plaintiff learned that the adjacent property, owned by Defendant, (i.e., the property which was not subdivided and sold to Plaintiff) was contaminated and that 600,000 pounds of contaminated dirt had been removed from that property since 1989, that the ground water was contaminated and that the Department of Public Works maintained a substantial file with respect to that property. All of those facts were known by Defendant, but not disclosed to Plaintiff.

Settlement Discussions

Plaintiff contends he made a 998 demand of $60,000 and Defendant offered approximately $6,000.

Damages

Plaintiff contended that the land is now worthless. The estimated value of damages was not specified.

Deliberation

1.5 days

Poll

12-0

Length

1 week


#83436

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