Christie-Spencer Corp. v. Hausman Realty Co., Inc.

118 F. Supp. 2d 408, 31 Envtl. L. Rep. (Envtl. Law Inst.) 20274, 2000 U.S. Dist. LEXIS 15840, 2000 WL 1612205
CourtDistrict Court, S.D. New York
DecidedOctober 23, 2000
Docket00 Civ. 7801(CM)
StatusPublished
Cited by14 cases

This text of 118 F. Supp. 2d 408 (Christie-Spencer Corp. v. Hausman Realty Co., Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Christie-Spencer Corp. v. Hausman Realty Co., Inc., 118 F. Supp. 2d 408, 31 Envtl. L. Rep. (Envtl. Law Inst.) 20274, 2000 U.S. Dist. LEXIS 15840, 2000 WL 1612205 (S.D.N.Y. 2000).

Opinion

MEMORANDUM ORDER DENYING REQUEST FOR PRELIMINARY INJUNCTION AND DISSOLVING TEMPORARY RESTRAINING ORDER

McMAHON, District Judge

Christie-Spencer Corp. brings this action under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”), 42 U.S.C. § 9601 et seq., the Resource Conservation and Recovery Act, as amended (“RCRA”), 42 U.S.C. § 6901 et seq., the New York Navigation Law § 176 and 181(5), and New York State common law against Hausman Realty Co, Inc. (“HRC”), its predecessors in interest Dorothy Kahn, Nancy Blu-menthal and Robert J. Hausman, and Mimi Cleaners, Inc., Bernard Grossman and Thomas Grossman (the “Mimi Defendants”) for environmental damage caused by Mimi Cleaners, the former subtenant of plaintiffs building at 58 Christie Place, Scarsdale, New York (the “Site”).

In July 2000, HRC, which holds a ground lease on the subject property through 2012, commenced work under an agreement with the New York State Department of Environmental Conservation (DEC) to clean the site of certain hazardous chemicals that had been released from Mimi’s dry cleaning operation. Pursuant to its agreement with DEC, HRC undertook to remove over 70 tons of soil located under the building. In the process, HRC discovered that the contamination extended beyond the perimeter of the excavation. On the advice of environmental engineers, HRC began installing a system of pipes and pumps below the surface of the site to perform an operation known as a “soil vapor extraction” (“SVE”). Over time the SVE system will remove most of the remaining contamination, in a manner explained below. Once this system is in, defendants plan to re-seal the floor and then, sub-let the property to new tenants.

*412 Even though DEC has approved of defendant’s approach, plaintiff seeks a mandatory preliminary injunction requiring HRC to fully remediate all contamination at the Site — including potential bedrock and groundwater contamination. To that end, plaintiff originally asked this court to enjoin HRC from completing installation of the SVE system, and to order HRC to remove any and all contaminated soils from under its property. At oral argument on the motion for injunction, plaintiff also demanded that, at a minimum, defendant HRC be ordered to test the bedrock under the site and adjacent groundwater (if any) for contamination, and to remediate it. They seek an injunction pendente lite on the grounds that HRC’s planned actions (1) pose an imminent and substantial danger to the public health in violation of RCRA; (2) violate Article Four, which require HRC to keep the property in good repair and to comply with all laws and regulations relating to the property; and (8) constitute “alterations” in excess of $1,000 which, under Article 23 of the ground lease from Christie-Spencer, require the owner’s permission.

For the following reasons, plaintiffs request for a preliminary injunction is denied.

FINDINGS OF FACT

The ground lease

Christie-Spencer (“Christie”), a New York corporation, is the owner of real property located at 58 Christie Place, Scarsdale, New York, in a commercial area of downtown Scarsdale. Defendant HRC operates a small shopping center on the Site, pursuant to a ground lease dated October 15, 1951 (the “ground lease”). The site is upgrade from the Bronx River, although separated from the river by several city blocks and the Scarsdale Metro-North tracks and terminal.

The prior owner of the Site, Parkway-Spencer Corp., entered into the initial lease with a company called Marx B. Hausman. As a result of a series of assignments of the ground lease on both sides, on August 1, 1959, Christie became the lessor, and on July 1, 1961, HRC became the lessee. The ground lease has been renewed twice and runs through December 31, 2012.

Defendants Dorothy Kahn, Nancy Blu-menthal, and Robert Hausman, 1 predecessors in interest to HRC, sublet the Site to defendants Mimi Cleaners, Inc., Bernard Grossman and Thomas Grossman (“Mimi”) or their predecessors in interest. The Site is currently vacant and has been for at least a year. Other retail establishments occupy adjacent stores in the same building. The U.S. Post Office stands next door.

In the ground lease, HRC agreed to keep the Site in good repair, and to comply — and to ensure that its subtenant Mimi Cleaners complied — with all laws, regulations, rules and requirements of every kind, with respect to the Site. HRC also agreed to pay the full cost of any failure by it or its subtenant to comply with these laws and regulations. (PLCompl. at Exh. A at 9.) The ground lease also requires HRC to indemnify Christie-Spencer “from all expense and/or damages by reason of any notices, orders, violations or penalties filed against or imposed upon the premises, or against [Christie] as owner thereof, because of the failure of [HRC] to comply with [all laws and regulations].” (Id. at 9-10.)

Article Twenty-Third of the lease also prohibits HRC from making any alterations to the Site that cost more than $1,000 without Christie’s prior written consent, but says that the Lessor shall “not withhold unreasonably such consent from the Lessee.” (Id. at 7.)

Site contamination

Mimi operated a dry cleaning business at the Site from 1954 until 1999. Mimi *413 Cleaners used a solvent known as perchlo-roethylene (“PCE”), a volatile organic compound widely used in the chemical dry cleaning industry.

During an inspection of the site in 1998 (which was at the time or shortly before Mimi Cleaners closed), HRC observed conditions that led HRC to suspect that hazardous substances had been released at the Site. HRC therefore hired Chazen Environmental Services, Inc. (“Chazen”), an environmental consulting firm, to evaluate environmental conditions at the Site.

Chazen conducted an initial site investigation in late 1998. A visual inspection revealed evidence of PCE spills on the floor around the dry cleaning machine and on the floor near chemical drums and containers throughout the facility. From this Chazen concluded that Mimi Cleaners had released PCE at the Site. In January and February, Chazen took soil samples from underneath the concrete floor within the dry cleaners and at other areas outside the cleaners. It reported its findings in March 1999.

Chazen reported concentrations of PCE and its degradation product dichloroethylene (“DCE”) in the soil under and within the vicinity of the dry cleaning equipment. The tests indicated levels of contaminants of 9.9 mg/kg under the floor slab. This was below the recommended soil cleanup objective for human health listed in the New York State Department of Environmental Conservation (“DEC”) TAGM # 4046 of 14 mg/kg. It was also below the Risk-Based Concentration (RBC) for residential health for PCE of 12 mg/kg provided by USEPA Region III. It thus appeared that the Site did not pose a danger to human health. However, the tests indicated PCE concentrations at levels above the DEG (TAGM #4046) recommended soil cleanup objectives of 14 mg/kg.

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118 F. Supp. 2d 408, 31 Envtl. L. Rep. (Envtl. Law Inst.) 20274, 2000 U.S. Dist. LEXIS 15840, 2000 WL 1612205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/christie-spencer-corp-v-hausman-realty-co-inc-nysd-2000.