Dora Homes, Inc. v. Epperson

344 F. Supp. 2d 875, 65 Fed. R. Serv. 1067, 2004 U.S. Dist. LEXIS 26354, 2004 WL 2615380
CourtDistrict Court, E.D. New York
DecidedNovember 18, 2004
Docket1:02-cv-05154
StatusPublished
Cited by15 cases

This text of 344 F. Supp. 2d 875 (Dora Homes, Inc. v. Epperson) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dora Homes, Inc. v. Epperson, 344 F. Supp. 2d 875, 65 Fed. R. Serv. 1067, 2004 U.S. Dist. LEXIS 26354, 2004 WL 2615380 (E.D.N.Y. 2004).

Opinion

*879 MEMORANDUM AND ORDER

GLASSER, District Judge.

I. INTRODUCTION

Plaintiff Dora Homes, Inc. (“Plaintiff’ or “Dora Homes”) brings this diversity action against Defendants Stuart W. Epperson (“Epperson”), Edward G. Atsinger (“At-singer”) (Epperson and Atsinger together are referred to as the “Individual Defendants”), and Salem Communications Corporation (“SCC”) (collectively, the defendants are referred to as “Defendants”). This case arises out of the July 24, 1997 release of petroleum (the “Petroleum Discharge”) from undeveloped Staten Island real property (the “Property”) which Plaintiff purchased from Epperson and At-singer in a transaction that closed on August 29, 1996. The New York State Department of Environmental Conservation (“NYSDEC”) cleaned up the Petroleum Discharge. Thereafter, Plaintiff voluntarily entered into a settlement agreement and release with New York State pursuant to which it paid $250,000 (the “Settlement Money”) to settle claims brought by the State against Plaintiff for the cost it incurred to clean up the oil spill.

In this suit, Plaintiff seeks to recover the money that it paid to the State as a result of the Petroleum Discharge and related damages. In the complaint (the “Complaint” or “Compl.”), Plaintiff alleges statutory causes of action under the New York State Navigation Law (the “Navigation Law”), and a common law claim for indemnification. 1 Defendants now move for summary judgment on Plaintiffs claims, arguing that the Petroleum Discharge occurred when Plaintiff owned the Property, they never had knowledge that underground oil tanks existed on the Property, and there is no evidence that the oil leak started prior to July 24, 1997. Plaintiff opposes Defendants’ motion and cross-moves for summary judgment on its Navigation Law claims, asserting, inter alia, that the undisputed material facts establish that Defendants’ performance of an illegal demolition on the Property in December 1990 constituted an “act or omission” that caused the Petroleum Discharge, and that they are therefore liable to Plaintiff for the Settlement Money.

For the reasons set forth below, Defendants’ motion for summary judgment is granted and Plaintiffs cross-motion for summary judgment is denied.

II. FACTUAL BACKGROUND

The following genuine, material facts are undisputed. The Property is located at Rumba Place and Powell Place in Staten Island, New York and consists of approximately 13 acres of land. (See Affidavit of Arnold Brown sworn to on March 13, 2003 (“Brown 3/13/03 Aff.”)' ¶¶ 4-8). Relatively early in the twentieth century, the Property was known as the “Rutherford Estate,” because it was owned by Joseph Francis Rutherford, the second president of the Watchtower Bible and Tract Society of Philadelphia, of the Jehovah’s Witnesses. (Id-¶ 4). The Jehovah’s Witnesses had conducted certain of their activities on the Property, and built a transmitter on it. (Id.; Gluckstern Certification dated September . 10, 2003 (“Gluckstern 9/10/03 Cert.”) Exh. F). In or about 1959, the Jehovah’s Witnesses' sold the Property to WPOW, a radio station, whose transmission facilities were located on the Property. 2 (Brown 3/13/04 Aff. ¶ 5; Affidavit of *880 John Linstra, sworn to on March 24, 2003 (“Linstra 3/24/03 Aff.”) ¶ 4).

According to Arnold Brown, who was employed by WPOW (and later WNYM) as a broadcast engineer and program director and who worked and lived on the Property between 1961 and 1990, and John Linstra, who served as General Manager of WPOW (and later WNYM) and worked on the Property between the early 1960’s and 1985, no one during this period knew of the following: (a) that underground oil tanks existed on the Property; (b) that there had been delivery of oil to an underground container on the Property; and (c) that “appurtenances” existed on the Property to an underground tank which would suggest to persons that an underground tank was, or had been, present at any time on the Property. (Brown Aff. ¶¶ 8, 12 sworn to on July 31, 2003 (“Brown 7/31/03 Aff.”); Brown 3/13/03 Aff. ¶¶ 7-18; Lins-tra 3/24/03 Aff. ¶¶ 5-12). WNYM relocated its transmission facilities from the Property in 1989 to a site in New Jersey. (Brown 3/13/03 Aff. ¶ 10).

Consistent with this background, neither Mr. Brown nor Mr. Linstra informed the Individual Defendants that underground oil tanks existed on the Property when it was sold to them. (Brown 3/13/03 Aff. ¶ 18; Linstra 3/24/03 Aff. ¶ 14). In fact, both Mr. Brown and Mr. Linstra did not become aware of the existence of the underground oil tanks until they spoke with Defendants’ counsel in late 2002 during the pendency of this case. (3/13/03 Brown Aff. ¶ 16; Linstra 3/24/03 Aff. ¶ 13). Similarly, until late 2002, shortly before the initiation of this lawsuit, Defendants were not aware that underground oil tanks existed on the Property — this was well after they had sold the Property to Plaintiff. (Affidavit of Stuart Epperson sworn to on May 30, 2003) (“Epperson 5/30/03 Aff.”) ¶¶ 8, 11; Affidavit of Edward Atsinger sworn to on May 30, 2003 (“Atsinger 5/30/03 Aff.” ¶¶ 9, 11).

The Individual Defendants purchased the Property from WPOW pursuant to a contract dated February 8, 1985. (Defs. Rule 56.1 Statement (“Defs. 56.1 Statement”) ¶ 1; Gluckstern Aff. Exh. A). Ep-person and Atsinger entered into a lease of the Property with Salem Media Corporation (“SMC”), 3 a California radio broadcasting company, which operated a radio station on the Property from February 1985 until September 1989, when it terminated the lease and removed all of its equipment from the Property. (Compl. ¶ 10; Brown 3/13/03 Aff. ¶ 10).

By agreement dated November 20,1990, the Individual Defendants contracted with Venstruct, Inc. (the “Contractor”), whose principal was Anthony M. Ventura (“Ven-tura”), to demolish all building structures located on the Property and to remove all debris from it. (Russo Aff. Exh. O). The Contractor agreed that the demolition and removal of structures from the Property “shall be done strictly in compliance with all applicable federal, state and local laws, ordinances, regulations, and rules currently in existence or promulgated during the term of’ the agreement. (Id. ¶ 6). In addition, the Contractor represented that it would “obtain all necessary permits, and arrange for all necessary inspections, as may be required by applicable federal, state, and local agencies having jurisdiction over the demolition project.” (Id. ¶ 7). Nonetheless, Plaintiff alleges that *881 the demolition project was conducted in violation of certain New York City regulations. (Savo Aff. ¶ 4).

On May 1, 1996, Plaintiffs principals, through their corporation, Sophia Homes, Inc., entered into a contract (the “Contract”) with Epperson and Atsinger to purchase the Property. (Defs. 56.1 Statement ¶ 2; Gluckstern 6/9/03 Cert. Exh. B). In relevant part, the Contract stated that Plaintiff “has inspected the buildings on the Premises and the personal property included in this sale and is thoroughly acquainted with their condition.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ahmed v. Noel
E.D. New York, 2025
Choi v. Hoyt De Leon Corp.
E.D. New York, 2023
Krause v. CSX Transportation
984 F. Supp. 2d 62 (N.D. New York, 2013)
Atlantic Specialty Insurance v. AE Outfitters Retail Co.
970 F. Supp. 2d 278 (S.D. New York, 2013)
Argonaut Insurance v. Samsung Heavy Industries Co.
929 F. Supp. 2d 159 (N.D. New York, 2013)
A.M. Medical Services, P.C. v. Progressive Casualty Insurance
101 A.D.3d 53 (Appellate Division of the Supreme Court of New York, 2012)
Monell v. Scooter Store, Ltd.
895 F. Supp. 2d 398 (N.D. New York, 2012)
Perkins Eastman Architects, P.C. v. Thor Engineers, P.A.
769 F. Supp. 2d 322 (S.D. New York, 2011)
Schenectady Industrial Corp. v. Upstate Textiles, Inc.
689 F. Supp. 2d 282 (N.D. New York, 2010)
Lamela v. City of New York
560 F. Supp. 2d 214 (E.D. New York, 2008)
Highland Capital Management, L.P. v. Schneider
379 F. Supp. 2d 461 (S.D. New York, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
344 F. Supp. 2d 875, 65 Fed. R. Serv. 1067, 2004 U.S. Dist. LEXIS 26354, 2004 WL 2615380, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dora-homes-inc-v-epperson-nyed-2004.