Coastal Mart, Inc. v. Department of Natural Resources

933 S.W.2d 947, 1996 Mo. App. LEXIS 1940, 1996 WL 678793
CourtMissouri Court of Appeals
DecidedNovember 26, 1996
DocketNo. WD 51946
StatusPublished
Cited by5 cases

This text of 933 S.W.2d 947 (Coastal Mart, Inc. v. Department of Natural Resources) 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
Coastal Mart, Inc. v. Department of Natural Resources, 933 S.W.2d 947, 1996 Mo. App. LEXIS 1940, 1996 WL 678793 (Mo. Ct. App. 1996).

Opinion

LAURA DENVIR STITH, Judge.

Under Sections 260.500-.530, RSMo 1986, a person having control of the hazardous substance at the time of a hazardous substance emergency can be held responsible for the cost of cleaning up the site of the emergency. Appellants Mr. Curran and Coastal Mart contest the determination of the Missouri Department of Natural Resources (the Department) that they were persons having control of gasoline which in 1991 allegedly leaked onto land surrounding the site of a service station owned by Coastal Mart and leased to Service Oil.

We reverse the finding below that Coastal Mart was a person having control under the statute because it “stored” and then “disposed of’ gasoline which allegedly had pooled under its property for four years following a leak of that gasoline in 1987. That finding was based on a preliminary and hypothetical report and not upon competent and substantial evidence. We also find, however, that because it was the owner of the tanks and of the land on which they are located at the time the tanks were refilled by Coastal Mart’s lessee in 1991, Coastal Mart can be considered to have stored gasoline at the site in 1991. Hence if, on remand, it is determined that the 1991 leak was caused by a leak of gasoline from the tanks or lines leading thereto in 1991, then it can be held liable as a person having control under the statute unless it is determined on remand that a statutory exception to liability applies.

We further find that no competent and substantial evidence supports the Director’s purported determination below that Mr. Cur-ran is a person having control of the hazardous substance and that to the extent the Order below holds to the contrary it is reversed and Mr. Curran is ordered to be dismissed from the proceeding.

I. FACTUAL AND PROCEDURAL BACKGROUND

This case involves gasoline spills from underground storage tanks (tanks) on a site owned by Coastal Mart in the City of Sugar Creek. By no later than 1986, Coastal Mart installed six tanks and began to operate a gasoline station at the site. In October 1987, a nearby resident detected escaped gasoline and complained to the Department. The subsequent investigation found that a release of over 700 gallons of gasoline occurred and that four of the six tanks were defective.

Coastal Mart spent in excess of $40,000 to clean up the site. As a part of the cleanup, Coastal Mart removed the four leaking tanks and replaced them with a large new tank. It also left in place the two remaining original tanks which had not leaked. A follow-up site inspection performed by Department personnel revealed that some contaminated water continued to seep near the homes of those residents living near the Coastal Mart station, but concluded that the contaminant was not gasoline but rather was “a de minimis concentration of perchloroethylene resulting from normal dry cleaning operations.” The resulting Departmental memorandum concluded that the site of the 1987 gasoline leak was “adequately clean” in October, 1989.

[950]*950In early 1990, Coastal Mart quit operating the site. At that time it took both the new tank and the two remaining original tanks out of service. The tanks remained out of service until January 9, 1991, when Coastal Mart leased the property and equipment to Service Oil. One month later, Service Oh filled the empty tanks with its gasoline. Soon thereafter, a nearby resident once again detected gasoline contamination.

The Department conducted an investigation. On April 12, 1991, it issued an Order finding that Coastal Mart and Mr. Curran were persons having control over a hazardous substance involved in a hazardous substance emergency1 and requiring them to “clean up the hazardous substance and take any reasonable actions necessary to end a hazardous substance emergency.” § 260.510(2).2 A “person having control over a hazardous substance” is defined by Section 260.500 as any person:

producing, handling, storing, transporting, refining, or disposing of a hazardous substance when a hazardous substance emergency occurs, including bailees, carriers, and any other person in control of a hazardous substance when a hazardous substance emergency occurs, whether they own the hazardous substance or are operating under a lease, contract, or other agreement with the legal owner thereof

§ 260.500(8).

Coastal Mart and Mr. Curran appealed the Order. An administrative hearing was held on December 16, 1991. The issue at the hearing focused on whether Coastal Mart was a “person having control over a hazardous substance” as defined by the statute.

The arguments in favor of and against finding that Coastal Mart is a “person having control over a hazardous substance” vary depending on whether the gasoline which caused the 1991 emergency resulted from a new spill in 1991, or from continued leaking of gasoline as a result of the 1987 spill.

The hearing officer did not reach the issue whether Coastal Mart or Mr. Curran would be considered persons having control if the hazardous substance emergency was caused by gasoline which leaked from the tanks or from some other source after Service Oil took over operation of the site in 1991. Instead, he accepted the Department’s argument that the leak was caused by the flushing out of gasoline which had pooled in the rocks beneath the site at the time of the 1987 gasoline leak. The hearing officer further accepted the Department’s argument that such pooling of gasoline under the surface constituted “storing” and “disposing of’ gasoline as those terms are used in Section 260.500(8), and therefore that Coastal Mart was a person having control of the hazardous substance and so was liable for the cleanup.

Coastal Mart filed a petition for judicial review in the circuit court. After much discovery, the circuit court initially dismissed the Petition for failure to prosecute after Coastal Mart failed to file a particular brief on the date originally set by the court. Within 30 days, however, the circuit court set aside its dismissal and reinstated the Petition upon learning that prior to the dismissal the parties had agreed to extend the date for filing the brief. It then affirmed the agency’s Order that Coastal Mart was a person having control under the relevant statute and that it was required to clean up the site. This appeal followed.

[951]*951 II.STANDARD OF REVIEW

This Court reviews the decision of the Department of Natural Resources, not the judgment of the circuit court. We review the agency’s determination of issues of law de novo; we review its determination of issues of fact only to determine whether they are supported by competent and substantial evidence, whether the agency has abused its discretion, or whether the agency has acted arbitrarily, capriciously, or unreasonably.3 Substantial evidence is evidence, which, if true, has probative force; it is evidence from which the trier of fact reasonably could find the issues in harmony therewith.4

In determining whether there is substantial evidence we defer to the agency’s expertise on scientific or technical matters, Citizens for Rural Preservation, Inc. v. Robinett, 648 S.W.2d 117

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933 S.W.2d 947, 1996 Mo. App. LEXIS 1940, 1996 WL 678793, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coastal-mart-inc-v-department-of-natural-resources-moctapp-1996.