Banfield Realty LLC v. Copeland

CourtDistrict Court, D. New Hampshire
DecidedOctober 13, 2023
Docket1:22-cv-00573
StatusUnknown

This text of Banfield Realty LLC v. Copeland (Banfield Realty LLC v. Copeland) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Banfield Realty LLC v. Copeland, (D.N.H. 2023).

Opinion

UNITED STATES DISTRICT COURT

DISTRICT OF NEW HAMPSHIRE

Banfield Realty LLC, Plaintiff

v. Case No. 22-cv-0573-SM Opinion No. 2023 DNH 128 William E. Copeland; Jack Copeland; Joseph P. Copeland; Roeseland Holdings 5, LLC; James W. Copeland; Country Motor Sales; Mountjoy & Carlisle, LLC d/b/a Olde Port Properties; George M. Carlisle; Jeffrey Mountjoy; Wayne Semprini; City of Portsmouth, New Hampshire; and Portsmouth Housing Authority, Defendants

O R D E R This suit arises out of the sale of property located at 375 Banfield Road, Portsmouth, New Hampshire. Plaintiff, Banfield Realty, bought the property on February 5, 2020. Shortly after purchasing, Banfield discovered significant environmental contamination. It promptly filed suit, asserting claims under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”) and state law theories of recovery, including claims based on negligence and negligence per se. Defendants City of Portsmouth (“Portsmouth”) and Portsmouth Housing Authority (“PHA”) have moved to dismiss all claims against them pursuant to Fed. R. Civ. P. 12(b)(6). Plaintiff objects. Standard of Review When considering a motion to dismiss, the court accepts all well-pleaded facts alleged in the complaint as true,

disregarding legal labels and conclusions, and resolving reasonable inferences in the plaintiff's favor. See Galvin v. U.S. Bank, N.A., 852 F.3d 146, 155 (1st Cir. 2017). To avoid dismissal, the complaint must allege sufficient facts to support a plausible claim for relief. See Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). To satisfy the “plausibility standard,” the factual allegations in the complaint, along with reasonable inferences drawn from those allegations, must show more than a mere possibility of liability – that is, “a formulaic recitation of the elements of a cause of action will not do.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). See also Lyman v. Baker, 954 F.3d 351, 359–60 (1st Cir. 2020) (“For the purposes

of our 12(b)(6) review, we isolate and ignore statements in the complaint that simply offer legal labels and conclusions or merely rehash cause-of-action elements.”) (cleaned up).

In other words, the complaint must include well-pled (i.e., non-conclusory, non-speculative) factual allegations with respect to each of the essential elements of a viable claim which, if assumed to be true, would allow the court to draw the reasonable and plausible inference that the plaintiff is entitled to the relief sought. See Tasker v. DHL Retirement Savings Plan, 621 F.3d 34, 38-39 (1st Cir. 2010).

Background Accepting the amended complaint's factual allegations as true – as the court must at this juncture - the relevant background is as follows. The dispute concerns property located at 375 Banfield Road, Portsmouth, New Hampshire (“the Property”), acquired by Banfield Realty from William E. Copeland, Jack Copeland, Kevin Copeland, Joseph P. Copeland, and Roeseland Holdings (the “Seller Defendants”) on February 5, 2020, for $1.2 million.

Before the February, 2020, sale, the Property had been owned by the Copeland family for nearly 60 years. Over those 60

years, the Copelands used the Property as a solid waste landfill, automobile repair shop, car-crushing facility, and salvage yard. As a result, the Property had a history of environmental issues, including contamination, that triggered the New Hampshire Department of Environmental Conservation’s involvement in remediation. When the Property was sold to Banfield Realty, the Seller Defendants represented that the contamination had been entirely remediated. Contrary to those representations, however, the Seller Defendants knew that building materials and automotive parts were buried on the Property, and they were aware of the continued presence of contaminants including heavy metals, polychlorinated biphenyls

(PCBs), and asbestos in the Property’s soil.

After purchasing, Banfield Realty claims to have discovered that the Property was “contaminated from multiple sources and releases, dating back several decades.” Am. Compl. ¶ 27. Two of those sources, Banfield contends, were the City of Portsmouth, and the PHA. It says that, on June 2, 2009, William E. Copeland (as executor of Virginia Copeland’s estate) submitted a Registration Form for Landfills Not Operated After July 9, 1981, to the New Hampshire Department of Environmental Services (“DES”), in which it reported that, during the 1960s, “building and construction waste was disposed of on the site, as

part of the City of Portsmouth’s urban renewal.” Id. at ¶ 28. Plaintiff further alleges that both the City of Portsmouth and the PHA were involved in Portsmouth’s urban development, as the PHA was created in 1953, and “many of its early projects involved the urban renewal of Portsmouth.” Id. at ¶ 29.

Plaintiff’s amended complaint references a Limited Subsurface Investigation Report prepared by Ransom Environmental Consultants, Inc., for the DES dated November 8, 2008 (the “Ransom Report”).1 According to the Ransom Report, arsenic, lead, selenium, PCBs, asbestos, and other hazardous substances were found on the Property, as well as “buried building

materials (including burned and partially burned wood, metal, plaster and paint fragments, flooring, etc.).” Pl.’s Obj. to Portsmouth Mot. to Dismiss, Exh. A. Samples taken from the buried building and construction materials included detectable asbestos.

Banfield Realty alleges that it has incurred significant costs related to the contamination, and “anticipates that DES

1 Generally, a court must decide a motion to dismiss exclusively upon the allegations set forth in the complaint and the documents specifically attached, or convert the motion into one for summary judgment. See Fed. R. Civ. P. 12(2). There is, however, an exception to that general rule, as “[a] district court may also consider ‘documents incorporated by reference in [the complaint], matters of public record, and other matters susceptible to judicial notice.’” Giragosian v. Ryan, 547 F.3d 59, 65 (1st Cir. 2008) (quoting In re Colonial Mortgage Bankers Corp., 324 F.3d 12, 20 (1st Cir. 2003)) (alterations in original).

Plaintiff argues that the court may consider the findings of the Ransom Report without converting this motion into one for summary judgment because the Report is referenced in their amended complaint (see Am. Compl. ¶ 34), and because the Ransom Report is a public record, available on the NH DES’s website. Neither Portsmouth nor PHA object to the court’s consideration of the Report (although both parties take issue with plaintiff’s characterization of the Report’s findings). The Ransom Report is sufficiently referenced in the amended complaint to merit consideration in adjudicating defendants’ motions. and [the U.S. Environmental Protection Agency] will require substantial remediation efforts to be implemented,” which will impose further costs and expenses on it. Id. at ¶ 46.

Discussion Banfield asserts seven claims against Portsmouth and PHA. It seeks recovery of costs and declaratory relief related to future costs under CERCLA, 42 U.S.C.

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Banfield Realty LLC v. Copeland, Counsel Stack Legal Research, https://law.counselstack.com/opinion/banfield-realty-llc-v-copeland-nhd-2023.