Carson Harbor Village, Ltd. v. Unocal Corp.

227 F.3d 1196, 2000 WL 1290337
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 14, 2000
DocketNos. 98-55056, 98-55107, 98-55210, 98-55213, 98-55215, 98-55422
StatusPublished
Cited by7 cases

This text of 227 F.3d 1196 (Carson Harbor Village, Ltd. v. Unocal Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carson Harbor Village, Ltd. v. Unocal Corp., 227 F.3d 1196, 2000 WL 1290337 (9th Cir. 2000).

Opinions

FLETCHER, Circuit Judge:

The current owner of land contaminated by storm water runoff and oil production filed this action against prior owners and operators of the property, as well as certain local government entities, to recover cleanup costs under, inter alia, the Comprehensive Environmental Response Compensation and Liability Act of 1980 (“CERCLA”), 42 U.S.C. § 9607(a), and California common law. The district court dismissed the case on cross motions for summary judgment, reasoning that plaintiff failed to meet its burden on at least one of the CERCLA elements, and that its common law claims were without merit.2 We have jurisdiction over plaintiffs appeal pursuant to 28 U.S.C. § 1291, and we reverse in part, affirm in part, and remand for further proceedings.

I. Factual AND PRocedural Background

Carson Harbor Village, Ltd. (“Carson Harbor”) owns and operates a mobile home park on 70 acres of land in the City of Carson, California. Carson Harbor Village Mobile Home Park, a general partnership run by Richard G. Braley and Walker Smith, Jr. (collectively, the “Partnership Defendants”), owned the property from 1977 to 1983 and also operated a mobile home park there. Between 1945 and 1983, Unocal Corporation (“Unocal”) held a leasehold interest in the property and used it for petroleum production. Specifically, Unocal operated a number of oil wells, pipelines, above-ground storage tanks, and production facilities.3

An undeveloped open flow wetlands area covers approximately 17 acres of the property. The wetlands form a natural drainage course that bisects the trailer park from the northeast to the southwest. At the northeast edge of the wetlands, storm water controlled by the City of Carson, the City of Compton and the County of Los Angeles (collectively, the “Government Defendants”), feeds into the wetlands through two storm drains. The drainage area immediately upstream from plaintiffs property includes California Highway 91, operated by the California Department of Transportation (“Caltrans”), as well as mixed use industrial and residential properties. Runoff from approximately three miles of the freeway drains to the wetlands.

In the course of seeking refinancing for the property in 1993, plaintiffs lender commissioned an environmental assessment which revealed slag and tar like material in the wetlands. Subsequent investigation disclosed (1) that the material had been on the property for several decades prior to its development as a mobile home [1200]*1200park; (2) that the material was some form of waste or by-product from petroleum production; (3) that the material was approximately four feet thick and covered roughly a 30 by 160 foot area in the wetlands; (4) the material and surrounding soils contained elevated levels of petroleum hydrocarbons (measured in terms of total petroleum hydrocarbons or “TPH”) and lead4; and (5) soil samples upgradient of the material also contained elevated levels of TPH and lead.5

Because the lead concentrations exceeded state reporting limits,6 plaintiffs environmental consultants informed the appropriate agencies of their findings. The Regional Water Quality Control Board (“RWQCB”) assumed the role, of lead agency and plaintiff coordinated its efforts with James Ross, the RWQCB’s Site Cleanup Unit Chief. Although the parties dispute whether the RWQCB “ordered” remedial action at the property or merely concurred in plaintiffs “voluntary” decision to clean up the tar and slag contamination, its is undisputed that plaintiffs environmental consultants requested a “no further action” letter from the RWQCB before proposing cleanup and submitting a remedial action plan (“RAP”).7

In the RAP, plaintiff proposed to remove the tar and slag material and impacted soils without addressing other areas of elevated TPH and lead contamination in the wetlands because the highest concentrations were associated with the tar and slag material. The RAP recommended post-cleanup levels of 1,000 ppm for TPH and 1,000 ppm TTLC/5 ppm STLC for lead. Ross approved the RAP subject to the condition that plaintiff bring TTLC lead values down to 50 ppm, rather 1,000 ppm.8

The cleanup went forward in the summer of 1995 and over the course of five days 1,042 tons of material were removed, varying in depth from one to four feet and covering an area approximately 75 feet by 160 feet. In all but four of the soil samples taken after the excavation, TPH and lead levels were within the established limits.9 After a site visit and independent soil [1201]*1201testing by RWQCB staff, Ross sent a closure letter stating:

the removal is complete to the extent required by this Board.... [W]e have concluded that all the requirements established by this Board in our RAP approval letter dated February 27, 1995, have been complied with. In addition, the contamination has been successfully removed and the remaining soil in the bottom of the watercourse poses no further threat to surface waters of the State. We, therefore, conclude that no further action is required at this site.

Within a year of the “no further action letter,” plaintiff filed suit against the Partnership Defendants, the Government Defendants, and Unocal, seeking to recover the costs of its remedial action as well as damages arising from its inability to refinance the property.10 On cross-motions for summary judgment the district court rejected all of plaintiffs theories of recovery. See Carson Harbor Village, Ltd. v. Unocal Corp., 990 F.Supp. 1188 (C.D.Cal.1997). On the CERCLA claim, the district court held that plaintiff could not show that its remedial action was “necessary” within the meaning of 42 U.S.C. § 9607(a)(4)(B) because there was no evidence of an “actual and real threat” to human health or the environment and (implicitly referring to plaintiffs quest for refinancing) “CERCLA ... was not designed to permit property owners to clean up their property unnecessarily for business reasons, and then to shift the costs to prior owners.” 990 F.Supp. at 1193. The district court focused on Ross’s deposition testimony that the remediation plan was initiated by plaintiff and that the RWQCB would not have required remedial action but for plaintiffs proposal. Ross’s testimony is directly controverted by the testimony and memoranda of others who were at the site meetings when remedial options were discussed, but the district court excluded this evidence as inadmissible hearsay. Id. at n. 4. As to the Partnership Defendants, the district court ruled that plaintiff failed to show a “disposal” of hazardous substances during their time of ownership-a prerequisite to prior owner liability under 42 U.S.C. § 9607(a)(2). The court held that there was no direct evidence of lead-containing storm water entering the property at any time before 1994 and the court rejected the argument that migration of lead and TPH from the tar and slag into the wetlands soil constituted a “disposal.” Id. at 1194-95.

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Carson Harbor Village, Ltd. v. Unocal Corporation
227 F.3d 1196 (Ninth Circuit, 2000)

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Bluebook (online)
227 F.3d 1196, 2000 WL 1290337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carson-harbor-village-ltd-v-unocal-corp-ca9-2000.