ASHLEY RIVER INDUSTRIES, INC. v. Mobil Oil Corp.

135 F. Supp. 2d 733, 2000 U.S. Dist. LEXIS 20504, 2000 WL 33243614
CourtDistrict Court, D. South Carolina
DecidedAugust 8, 2000
DocketCIV. A. 2:98-2964-12
StatusPublished
Cited by3 cases

This text of 135 F. Supp. 2d 733 (ASHLEY RIVER INDUSTRIES, INC. v. Mobil Oil Corp.) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ASHLEY RIVER INDUSTRIES, INC. v. Mobil Oil Corp., 135 F. Supp. 2d 733, 2000 U.S. Dist. LEXIS 20504, 2000 WL 33243614 (D.S.C. 2000).

Opinion

ORDER

HOUCK, Chief Judge.

This action was brought by Ashley River Industries (“ARI”) and Coastal Marine Enterprises (“CME”) (collectively “plaintiffs”) against Mobil Oil Corporation, Mobil Chemical Company and Mobil Corporation (collectively “Mobil” or “defendants”), alleging fraud, negligence, negligence per se, money had and received, nuisance, and seeking a declaration of responsibility. At issue is the lead and arsenic contamination of 9.65 acres of industrial property located on the Ashley River in “the neck” area of North Charleston, South Carolina. The matter is currently before the Court upon the defendants’ motion for summary judgment. For the reasons that follow, the Court grants the motion.

. Facts

A. History of the Property in Question

A brief history of the property and its uses is necessary in order to address the issues presented. The area known as “the *735 neck” has seen industry since the mid-1800s. Virginia-Carolina Chemical Corporation (“VCC”) built a chemical production plant there around 1870. On the specific plot in question, VCC produced fertilizers, made primarily from sulfuric acid, which was created from individual components on the site. Lead and arsenic are by-products of the production of sulfuric acid. VCC conducted this process continually until 1968, when it merged with Socony Mobil Oil Company, which changed its name to Mobil Oil Corporation in 1966.

Mobil Chemical Company, a division of Mobil Oil Corporation, thereafter conducted operations on the site in question. The Chicora Acid Plant, as it was now called, produced sulfuric acid both for fertilizer production and for use in the Mobil Chemical plant, located north of the instant property. Sulfuric acid was shipped to Mobil Chemical via a pipeline. This process continued until 1969, when Mobil sold its fertilizer production and leveled the Acid Plant to its foundations. 1

Mobil Oil offered its excess land for sale in 1972. In November of that year, Mobil entered into a sales agreement with Consolidated Services, Inc. (now known as Ashley River Industries (“ARI”)) for the purchase of 9.65 acres of this land. After extensive negotiations, the land was purchased by ARI on February 6,1973.

B. The Marina and Campground

CME and ARI are each owned in part by David Race, who is the president of both companies. ARI’s initial business on the property was in the nature of electronics and ship repair. However, in about 1985 ARI and CME began the process of obtaining permits to construct a marina and RV park/campground on the property. 2 The permits consisted of a water quality certification from the South Carolina Department of Health and Environmental Control (“DHEC”) Division of Water for the marina, and construction authorization from the DHEC Bureau of Solid & Hazardous Waste Management (“Bureau”) for the park/campground. A series of correspondence ensued between DHEC and the plaintiffs, the details of which are important to this discussion. 3

1. Letter of July 18, 1985

On July 18, 1985, the manager of DHEC’s Impact Analysis and Standards *736 Section wrote a letter to the U.S. Array-Corps of Engineers’ Charleston District Engineer regarding the plaintiffs’ water quality certification. A copy of this letter was sent to CME as the permit applicant. This letter indicates that the certification would be deferred, in part due to the possibility of hazardous materials on CME’s proposed marina site:

First, much of the area adjacent to the marina site has been used for many years as a site for heavy industry. Unknown quantities of potentially hazardous materials have been dumped in the marshes adjacent to the Ashley River in the general area of the proposed marina. Recent maintenance dredging ... in an old barge slip upstream of the site uncovered a lens of contaminated soil that had to be removed to high ground and/or isolated by covering with clay.. Sampling in the small creek adjacent to the marina site is complete; however, analysis of the samples will not be completed until late fall. Discussions with field personnel indicate that conditions at the site are uncharacteristic of a natural marsh. The odor, soil characteristics and the ability of the disturbed sediments to create a sheen upon the water indicate a high potential for contamination.
Construction activities in the marsh ... may disturb contaminated sediment and cause adverse water quality problems. Also, upland construction may result in exposure of contaminated soils and water quality problems due to runoff. For these reasons, we will defer action on certification until after sampling results have been received. 4

2. Letters of September b, 1985

On September 4, 1985, the same Impact Analysis manager wrote two letters directly to CME regarding its requests for permits. The first indicates that certification for the marina was granted on several conditions, “depending on sampling results.” It specifically states in part that “Due to potentially contaminated sediments in the small creek adjacent to the downstream side of the property ... no work is to be done on. the proposed boat rental pier until the results of sampling conducted in June of 1985 are available and written authorization to proceed with the work is provided to the applicant by this office.”

The second letter, sent to Henry McCaughey of CME, is more specific in regards to potential contamination. It reads in relevant part as follows:

[DHEC grants your water quality certification- for your proposed marina subject to certain conditions, to which you have agreed].
Throughout our discussions with you, we have expressed concerns over location of a recreational facility in an area potentially contaminated with hazardous material. These concerns include:
1. Potentially contaminated sediments in the marsh adjacent to the site; and
*737 2. Potentially hazardous waste located on property adjacent to your site.

Additional concerns voiced during meetings and telephone conversations with you, include the potential for hazardous wastes in soil on your site and the increased potential for body contact recreation in the Ashley River, which is not classified or protected for swimming.

»Our general concerns cannot directly be addressed through the [certification] process due to the scope of that review process. However, we feel that we must advise you of our concerns and recommend that you take certain actions to ensure that the site is safe for your intended use. We recommend that you do the following:

1. Have chemical, testing conducted on the soil from several locations on your site....

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Related

Parker v. Worcester Insurance
247 F.3d 1 (First Circuit, 2001)
Ashley River Industries, Inc. v. Mobil Oil Corp.
245 F.3d 849 (Fourth Circuit, 2001)

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Bluebook (online)
135 F. Supp. 2d 733, 2000 U.S. Dist. LEXIS 20504, 2000 WL 33243614, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ashley-river-industries-inc-v-mobil-oil-corp-scd-2000.