Bonzi v. People ex rel. Central Valley Regional Water Quality Control Board

216 Cal. App. 4th 1085, 157 Cal. Rptr. 3d 429, 2013 WL 2359010, 2013 Cal. App. LEXIS 427
CourtCalifornia Court of Appeal
DecidedMay 30, 2013
DocketNo. F065067
StatusPublished
Cited by28 cases

This text of 216 Cal. App. 4th 1085 (Bonzi v. People ex rel. Central Valley Regional Water Quality Control Board) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bonzi v. People ex rel. Central Valley Regional Water Quality Control Board, 216 Cal. App. 4th 1085, 157 Cal. Rptr. 3d 429, 2013 WL 2359010, 2013 Cal. App. LEXIS 427 (Cal. Ct. App. 2013).

Opinion

Opinion

GOMES, J.

James Bonzi, executor of the estate of Rudy Bonzi, filed a petition for an order confirming the sale of real property that was part of the estate, which has been in probate since Rudy Bonzi’s death in 1991. The People of the State of California ex rel. Central Valley Regional Water Quality Control Board (RWB) and ex rel. Department of Resources Recycling and Recovery (CalRecycle) (collectively respondents) filed an objection to that petition. Respondents contended the net proceeds of the sale [1088]*1088of the property were subject to a stipulated court order that required real property jointly owned by Rudy and Mary Bonzi be sold to satisfy the Bonzis’ statutory obligation to remediate and close a solid waste landfill they owned and operated. The trial court agreed with respondents and found the sale proceeds subject to payment under that court order.

James Bonzi, as executor for the estate of Rudy Bonzi, and Thad Bettencourt, as executor of the estate of Mary Bonzi and trustee of the 2007 Mary Bonzi Novation General Trust (collectively appellants), appeal, contending (1) respondents did not have standing to enforce the stipulated court order, (2) respondents are barred from enforcing the order because they failed to file a creditor’s claim as required by Probate Code section 9100,1 and (3) there is insufficient evidence to support the trial court’s finding of estoppel. Finding no merit in appellants’ assertions of error, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND

Rudy and Mary Bonzi were married in 1940.2 Beginning in 1967, they jointly owned and operated a 128-acre licensed solid waste disposal facility, the Bonzi Sanitation Landfill, in Modesto (the Bonzi Landfill). The Bonzi Landfill was operated by Bonzi Sanitation Landfill, a general partnership (Bonzi Sanitation), on property owned by Ma-Ru Holding Company, Inc., a California corporation (Ma-Ru). Rudy and Mary were the sole shareholders of Ma-Ru and the sole partners of Bonzi Sanitation.

The Bonzi Landfill is subject to regulation by the RWB, a state agency that is (1) authorized and responsible for ensuring the prevention and abatement of water pollution and nuisance within the Central Valley Region, including Stanislaus County and (2) authorized to issue orders and request the filing of civil actions to carry out this responsibility. (Wat. Code, §§ 175, 13200, 13201, 13225, 13240 et seq., 13300 et seq.) As early as 1984, groundwater pollution was discovered at the Bonzi Landfill; the RWB began issuing a series of administrative orders which required the evaluation and remediation of the contamination, including cease and desist order No. 84-153, cleanup and abatement order No. 89-185, and waste discharge requirements order No. 98-093. The Bonzi Landfill was also subject to regulation by CalRecycle and its predecessor, the California Integrated Waste Management Board (CIWMB). CalRecycle is a state agency that administers programs formerly [1089]*1089managed by CIWMB, including regulatory oversight of solid waste landfills. (Pub. Resources Code, § 40000 et seq.)

All landfills in California, including the Bonzi Landfill, are under state mandate to create and fund plans for their ultimate closure and postclosure maintenance. (Pub. Resources Code, §§ 43500, 43501, subd. (a).) To ensure funds will be available to perform these activities and pay for corrective actions, a landfill owner or operator is required to establish a tmst fund, or an equivalent financial arrangement acceptable to CalRecycle, commonly referred to as “financial assurances.” (Pub. Resources Code, § 43501, subd. (a)(1)(B); Cal. Code Regs., tit. 27, § 22225, subd. (a)(2).) The Legislature imposed the financial assurances requirement to achieve “the long-term protection of air, water, and land from pollution due to the disposal of solid waste.” (Pub. Resources Code, § 43500.) In accordance with the statutory financial assurance requirements, Rudy and Mary established and began funding a landfill trust account for the Bonzi Landfill (the Landfill Trust). As of 1990, the Landfill Trust was being held by Union Safe Deposit Bank, Stockton, California, as trustee.

The minimum fund balance is calculated and increased annually; the fund must be fully funded by the time the disposal facility receives its last shipment of waste. (Cal. Code Regs., tit. 27, § 22225, subd. (a).) CalRecycle may obtain injunctive relief to compel the owner or operator to provide the required financial assurances. (Pub. Resources Code, § 45014, subd. (b).) The operator may request CalRecycle release disbursements from the trust fund to pay for closure, postclosure maintenance, or corrective action activities in advance of those activities or as reimbursement for activities completed. (Cal. Code Regs., tit. 27, § 22234, subd. (a).) The RWB is authorized to use financial assurance funds if the owner or operator has failed to implement the required closure, postclosure, or corrective activities. (Pub. Resources Code, § 43601, subd. (c); Cal. Code Regs., tit. 27, § 22234, subds. (c) & (d).) If the trust fund has excess funds, the operator may request the excess be returned to it. (Cal. Code Regs., tit. 27, § 22240, subd. (c).)

The Dissolution Action

In 1986, Mary filed a petition to dissolve her marriage to Rudy in Stanislaus County Superior Court (Bonzi v. Bonzi, No. 212118), which was later renumbered to No. 83455 (the Dissolution Action). A major concern of both parties in the Dissolution Action was their joint obligation to fund the cleanup and closure of the Bonzi Landfill. To address this issue, Rudy proposed selling their jointly owned real property to fund the Landfill Trust. [1090]*1090At that time, estimated closure and postclosure costs that needed to be funded totaled approximately $7.6 million; the Landfill Trust’s reserve, however, was only $220,000. Mary opposed this plan, asserting that the law did not require the total amount of the closure and postclosure costs be deposited in full and the funding of these costs should be treated as any other community obligation.

In November 1991, an order was filed in the Dissolution Action entitled “Final Tentative Decision” (the 1991 Order). The 1991 Order incorporated stipulations between the Bonzis that had been entered into the clerk’s minutes during the dissolution trial. Among other things, the Bonzis stipulated that they would each have a 50 percent ownership interest in the Bonzi businesses, including the Bonzi Landfill, and an exhibit attached to the 1991 Order would state how the parties would be required to assure there would be funds available to satisfy the remediation and closure costs. The Bonzis acknowledged in the 1991 Order that “[governmental regulations have placed husband and wife in the position of having to fund approximately $8,000,000 in the ensuing years to remediate ground water contamination and to close the dump. As conceded by both parties, this as a practical matter requires them to continue with joint ownership of those businesses, long past their matrimonial separation. This has further led both parties to further stipulate that they will remain joint owners of the remainder of their businesses.”

The exhibit attached to the 1991 Order, labeled exhibit A, is entitled “Proposed Order Re: Groundwater Remediation, Closure, & Post-Closure of the Bonzi Sanitation Landfill” (the Proposed Remediation Order).

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Cite This Page — Counsel Stack

Bluebook (online)
216 Cal. App. 4th 1085, 157 Cal. Rptr. 3d 429, 2013 WL 2359010, 2013 Cal. App. LEXIS 427, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bonzi-v-people-ex-rel-central-valley-regional-water-quality-control-board-calctapp-2013.