Confidential
Settlement – $707,000Judge
Court
Grant Superior
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Michael Black
(technical)
Defendant
George Maddox
(technical)
Facts
This action arose from the sale of a service station property located in Moses Lake. The property was purchased by the Plaintiffs, two brothers, in 1988 for investment purposes. An environmental study at the time of the Plaintiffs' purchase indicated that the soil was free of hazardous wastes. The independent testing company claimed that it did not encounter groundwater. Defendant, a foreign oil corporation, sought to purchase the property for $605,000 in 1990, subject to an environmental review. Defendant's testing discovered petroleum product contamination in the groundwater, but not the soil beneath the site. Based on that discovery, Defendant refused to close the sale transaction on May 1, 1991.
Settlement Discussions
Offers and demands were not disclosed.
Damages
$605,000 purchase price, plus interest from May 1, 1991 and legal costs.
Other Information
On July 1, 1993, the Court determined that the Defendant was a "sophisticated property buyer with extensive experience in dealing with contaminated property" and, as such, should have specifically mentioned "groundwater" in its purchase agreement. The Court concluded that the contract did not reference "groundwater." Defendant was not relieved from purchasing the Plaintiff's property. Defendant was ordered to pay the purchase price of $605,000 plus 12% interest from May of 1991 until the judgment is satisfied. The Defendants appealed the case; this settlement was reached during the appeal. The Plaintiffs still have an action pending against the owner of the property who sold to them in 1988 to recover damages associated with the delayed sale and clean-up efforts being required by the Department of Ecology. The Department of Ecology has named the Plaintiffs and the prior owner, who sold to them, as Potentially Liable Persons (PLP's) pursuant to RCW 70.105D.040.
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