Chouteau Development Co. v. Sinclair Marketing, Inc.

200 S.W.3d 68, 2006 Mo. App. LEXIS 739, 2006 WL 1459954
CourtMissouri Court of Appeals
DecidedMay 30, 2006
DocketWD 65660
StatusPublished
Cited by2 cases

This text of 200 S.W.3d 68 (Chouteau Development Co. v. Sinclair Marketing, Inc.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chouteau Development Co. v. Sinclair Marketing, Inc., 200 S.W.3d 68, 2006 Mo. App. LEXIS 739, 2006 WL 1459954 (Mo. Ct. App. 2006).

Opinion

RONALD R. HOLLIGER, Judge.

Chouteau Development Co., LLC, (“Chouteau”) appeals the trial court’s grant of summary judgment to Sinclair Marketing, Inc. (“Sinclair”), finding that Sinclair had no liability to Chouteau for costs incurred when Chouteau removed petroleum tanks from a site previously owned by Sinclair. Chouteau alleges in two points that the trial court erred in finding that, at the time Sinclair surrendered the site to the subsequent owner, Sinclair had no duty under state and federal regulations regarding (1) a previously removed petroleum tank, and (2) three petroleum tanks still located at the site. Because we find Sinclair had a duty, the judgment is reversed and the case is remanded for proceedings to determine the costs Sinclair would have incurred but for the taking.

Facts and Procedural Background

From 1983 to January 1999, Sinclair owned and operated a gasoline and service station near the junction of 1-35 and Chou-teau Tráfficway. The site was condemned for redevelopment purposes in April 1999, and in August 1999 Chouteau, the redevel-oper, took possession via the condemning government authority. During the condemnation, Sinclair objected to the appraised value and asked for a jury trial to establish the proper compensation for the taking. At that trial, per Sinclair’s motion, evidence was excluded regarding any duty Sinclair had to perform environmental work related to underground petroleum *70 storage tanks on the property. Consequently, the compensation Sinclair received in condemnation was not reduced for any environmental work that Sinclair had a duty to perform as of the date it surrendered ownership.

This case is separate from the condemnation case; this case involves Chouteau’s subsequent equitable indemnity suit against Sinclair for costs Chouteau incurred in removing underground petroleum storage tanks and cleaning the site. The site was under the jurisdiction of the Missouri Department of Natural Resources (DNR). During Sinclair’s ownership, the site contained one underground tank for storing used oil and three underground tanks for gasoline. In May 1998, Sinclair removed the oil tank. On December 16, 1998, the DNR sent Sinclair a letter itemizing remaining work that needed to be done regarding the oil tank’s removal: (1) collection and analysis of soil samples near the tank’s location; (2) collection of a soil sample up-gradient of the tank’s location; and (3) a signed copy of the completed hazardous waste manifest for the removed contents of the tank. The DNR letter continued, “Analytical data contained in the [closure report for the oil tank] indicates excessive petroleum hydrocarbon contamination in the vicinity of the downgradient wall sample. The reported contaminant concentrations warrant further investigation or corrective action.... A final closure letter will not be issued until these deficiencies have been satisfactorily resolved.”

On January 4, 2000, Sinclair sent the DNR a letter stating Sinclair no longer owned the site and asserting that Sinclair had complied with its legal responsibilities for site assessment. The DNR replied that a “change in ownership does not relinquish previous owners/operators from their responsibilities for release investigation and remedial action required by [Missouri law.] The [DNR] again requests that Sinclair Oil Corporation gain access to the site from the new owners for purposes of completing the site characterization work plan....”

Chouteau removed the remaining underground tanks, cleaned the site, and converted the site to a restaurant. Chouteau sued Sinclair to recover the costs of the removal and cleaning. Both parties moved for summary judgment. The trial court granted Sinclair’s motion, finding as a matter of undisputed fact that at the time of the taking, Sinclair was in compliance with state and federal regulations regarding the underground tanks. The trial court found that the December 1998 letter from the DNR “did not constitute an order to Sinclair requiring closure or remediation at the site.”

The trial court concluded, as a matter of law, that Chouteau could not prevail, because Sinclair had no duty to remove the tanks or clean or close the site. The trial court also concluded that the only legal course that would ensure Sinclair’s right to due process of law was a regulatory “assessment action,” not litigation in a court of law. Furthermore, the trial court concluded that, because Sinclair had no duty to remediate the site, imposing liability here would violate Sinclair’s right to just compensation in the condemnation. Chou-teau appeals.

Discussion

We review a grant of summary judgment de novo. ITT Commercial Fin. Corp. v. Mid-Am. Marine Supply Corp., 854 S.W.2d 371, 376 (Mo. banc 1993). Summary judgment is appropriate only where “there is no genuine issue as to any material fact and ... the moving party is entitled to judgment as a matter of law[.]” Rule 74.04(c)(6).

*71 Chouteau’s theory of liability in this case is equitable indemnity. “Indemnity is a right which inures to a person who has discharged a duty which is owed by him, but which, as between himself and another, should have been discharged by the other, so that if the second does not reimburse the first, the second is unjustly enriched to the extent that his liability has been discharged.” State ex rel. Manchester Ins. & Indent. Co. v. Moss, 522 S.W.2d 772, 774 (Mo. banc 1975). In order to prevail here, Chouteau must show (1) Sinclair had a duty regarding the site at the time ownership transferred; (2) Sinclair breached its duty; (3) by acquiring the property, Chouteau became obligated to perform the duty owed by Sinclair; (4) Chouteau performed Sinclair’s duty; and (5) if Sinclair does not reimburse Chou-teau, Sinclair will be unjustly enriched.

Chouteau’s two points relied on challenge the trial court’s finding that Sinclair had no outstanding duty regarding remediation of the site. Because both points turn on whether Sinclair had any duty, we address them together. “Whether a duty exists is purely a question of law.” Hoffman v. Union Elec. Co., 176 S.W.3d 706, 708 (Mo. banc 2005). “The breach of the duty of care is a question of fact....” Alcorn v. Union Pac. R.R. Co., 50 S.W.3d 226, 238 (Mo. banc 2001).

Sinclair’s duty is found in the environmental statutes and regulations, including Mo.Rev.Stat. §§ 319.100 to 319.139 and 10 CSR 20-10.010 to 10 CSR 20-10.074. The regulations regarding underground storage tanks “apply to all owners and operators of an underground storage tank[J” 10 CSR 20-10.010(1). As the DNR letter shows, Sinclair remains bound by the regulations even following transfer of the property to Chouteau. Specifically applicable to this case, all existing underground tanks must, by December 22, 1998, (A) meet the standards for new tanks, or (B) be upgraded to standards set by regulation, or (C) be closed in the manner prescribed by regulation. 10 CSR 20-10.021(1).

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200 S.W.3d 68, 2006 Mo. App. LEXIS 739, 2006 WL 1459954, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chouteau-development-co-v-sinclair-marketing-inc-moctapp-2006.