City of San Diego v. United States Gypsum Co.

30 Cal. App. 4th 575, 35 Cal. Rptr. 2d 876, 94 Daily Journal DAR 16821, 94 Cal. Daily Op. Serv. 9069, 1994 Cal. App. LEXIS 1213
CourtCalifornia Court of Appeal
DecidedNovember 29, 1994
DocketB064835
StatusPublished
Cited by60 cases

This text of 30 Cal. App. 4th 575 (City of San Diego v. United States Gypsum Co.) 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
City of San Diego v. United States Gypsum Co., 30 Cal. App. 4th 575, 35 Cal. Rptr. 2d 876, 94 Daily Journal DAR 16821, 94 Cal. Daily Op. Serv. 9069, 1994 Cal. App. LEXIS 1213 (Cal. Ct. App. 1994).

Opinion

Opinion

GILBERT, J.

A city sues various defendants for damages stemming from installation of asbestos in its buildings. The statute of limitations for injury to city’s real property is three years. (Code Civ. Proc., § 338, subd. (b).) The statute of limitations begins to run when city suffers an appreciable and actual harm.

Here we hold, among other things, appreciable harm is not limited to the existence of an actual health hazard. As pleaded, the city’s knowledge of deterioration to its buildings caused by asbestos constitutes the infliction of an appreciable harm that begins the statute of limitations running.

Plaintiff City of San Diego appeals a judgment in favor of defendants, are manufacturers and distributors of asbestos-containing building materials. The trial court’s ruling was based upon the three-year statute of limitations of Code of Civil Procedure section 338, subdivision (b), and a failure to state a cause of action for nuisance and equitable indemnification. We affirm.

Facts

On May 25, 1988, plaintiff City of San Diego (City) brought an action against 31 defendants who manufactured, distributed or otherwise were involved with asbestos-containing building materials. City alleged it owned or leased more than 1,000 public buildings that contained these materials. In its second amended complaint, City alleged asbestos particles, fibers and dust have contaminated city-owned and city-leased buildings due to “normal wear, aging, abrasions, and impacts, as well as routine maintenance and repair.” City seeks recovery for, among other things, money it spent and will spend to identify and abate the asbestos danger, and for loss of use and decline in value of its property.

*579 City alleged the asbestos-containing building materials included insulation, gaskets, backings, tape, floor and ceiling tile, acoustical materials, plaster, textiles, boilers, ventilating materials and fireproofing. (See Mullen v. Armstrong World Industries, Inc. (1988) 200 Cal.App.3d 250, 256-257, fn. 7 [246 Cal.Rptr. 32], describing the primary, secondary and consumer uses of asbestos and the physical properties of the six asbestos minerals used in building products.)

The five defendants involved with this appeal are: W. R. Grace & Co.— Connecticut, a manufacturer of fireproofing insulation and acoustical plaster; United States Gypsum Company, a manufacturer of acoustical plaster; Thorpe Insulation Company, a distributor of thermal system insulation; Hamilton Materials, Inc., a manufacturer and supplier of decorative ceiling compounds; and Proko Industries, Inc., also a manufacturer and supplier of decorative ceiling compounds. In the 1960’s and 1970’s, City purchased and installed asbestos-containing building materials manufactured or distributed by these defendants.

Initially, City alleged causes of action for negligence, strict liability, breach of express and implied warranties, restitution, nuisance, fraud, punitive damages, successor liability and conspiracy. Defendants challenged these causes of action, upon grounds of the statute of limitations and failure to state a cause of action, by demurrer, judgment upon the pleadings and summary judgment. The trial court granted these motions.

This appeal concerns the negligence, strict liability, nuisance and equitable indemnification causes of action alleged in City’s second and third amended complaints.

The parties to this litigation agree that the three-year statute of limitations for “[a]n action for . . . injury to real property” applies here. (Code Civ. Proc., § 338, subd. (b).) May 25, 1985, is the day three years before City filed this lawsuit against these asbestos manufacturers and distributors. Evidence offered in support of defendants’ summary judgment motions contending City’s lawsuit is precluded by the three-year limitations period of section 338, subdivision (b), established this:

Before May 25, 1985, City conducted an extensive investigation and evaluation of asbestos-containing materials in many city buildings. City’s safety director, Rick Gumming III, directed this investigation. Dr. Kenneth S. Cohen, a certified industrial hygienist, toxicologist and safety engineering consultant, assisted Gumming in an evaluation of city buildings, including bulk sampling and air testing. Between 1978 and 1985, two professional testing labs conducted 500 air quality tests and analyses in city buildings.

*580 Also before May 25, 1985, Dr. Cohen trained approximately 200 city maintenance personnel concerning the health dangers of disturbing in-place asbestos and held asbestos training sessions for other city custodial employees. In 1983, City prepared an eight-minute videotape entitled “Understanding Asbestos,” that was shown to many city employees who worked in city buildings constructed with asbestos-containing building materials. City also printed 500 posters stating, “Caution. Asbestos Dust Hazard. Certain Construction Materials within this building have been identified as containing asbestos fibers. Avoid Creating Dust. Breathing Asbestos Fibers May Cause Serious Bodily Harm.” These signs were posted in city buildings.

City also formed an “Asbestos Containment Team,” known as “The Tiger Team.” Team members received special training in dealing with asbestos, wore protective clothing, including respirators, received health screening, including chest X-rays and pulmonary function tests, and were paid a premium hourly rate in their duties.

Before May 25, 1985, there were instances of degrading or deterioration of asbestos-containing building materials in city buildings. In 1983, for example, the San Diego Police Headquarters building contained an asbestos boiler blanket that was “in very poor condition and . . . ripped.” In 1984, asbestos insulation covering piping in the men’s restroom at Brown Field became damaged. Full-day air sampling at that time disclosed, however, that airborne asbestos fibers fell below current health standards.

In 1982, a ceiling at the Mission Beach Plunge collapsed when a transient living in the ceiling crawl space stepped through the ceiling. The ceiling collapse apparently produced “ ‘high’ ” asbestos fiber counts similar to “a controlled rip-out of insulation in the hold of a Naval Vessel,” according to Dr. Cohen. In 1984, a city employee wrote city officials and informed them the lube area of the city service station in which he worked had “[asbestos] coming off of overhead pipes and falling] all over the place.”

In 1980, safety director Gumming wrote the deputy city manager concerning asbestos exposure to 400 to 500 city employees. He stated: “These exposures are encountered when asbestos-cement water pipe is cut; when making brake and clutch repairs; when cutting dry wall impregnated with asbestos; and when doing maintenance/repair work in crawl spaces, on ceiling tiles or on pipe insulation impregnated with asbestos.” In 1983, Gumming noted “there is no safe level of exposure [to asbestos].”

On January 31, 1985, City filed a claim for $50 million damages in the United States Bankruptcy Court proceeding concerning the bankruptcy of *581 Johns-Manville Corporation and its related entities.

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30 Cal. App. 4th 575, 35 Cal. Rptr. 2d 876, 94 Daily Journal DAR 16821, 94 Cal. Daily Op. Serv. 9069, 1994 Cal. App. LEXIS 1213, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-san-diego-v-united-states-gypsum-co-calctapp-1994.