Exxon Corp. v. Yarema

516 A.2d 990, 69 Md. App. 124, 1986 Md. App. LEXIS 414
CourtCourt of Special Appeals of Maryland
DecidedNovember 6, 1986
Docket143, September Term, 1986
StatusPublished
Cited by69 cases

This text of 516 A.2d 990 (Exxon Corp. v. Yarema) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Exxon Corp. v. Yarema, 516 A.2d 990, 69 Md. App. 124, 1986 Md. App. LEXIS 414 (Md. Ct. App. 1986).

Opinion

BISHOP, Judge.

TABLE OF CONTENTS

Page

I. Facts...................................................... 132

II. Effect of Settlement on Punitive Damages Award........... 133

A. Scope of Uniform Contribution Among Tortfeasors Act .. 134

B. Punitive Damages Contingent on Compensatory Award .. 138

III. Improper Communication With Jury......................... 141

*130 Page

IV. Physical Impact as Condition Precedent........... 145

A. Nuisance..............................................146

B. Negligence and Strict Liabilty..........................153

V. Punitive Damages..........................................156

A. The Standard..........................................156

B. The Evidence.......................................... 158

C. Conduct Directed Against Particular Plaintiffs...........167

VI. Admissibility of Testimony Concerning the Hazardous Effects of

Contaminated Water...................................... 169

In Jacksonville, Maryland, gasoline leaks developed in storage tanks located at three stations owned respectively by Amoco Oil Company, Gulf Oil Corporation and appellant, Exxon Corporation. The discharged gasoline contaminated the ground water along Jarrettsville Pike and spawned four separate tort suits that involved twenty-seven parties and at least ninety claims. Eventually these cases were consolidated and most claims were settled or dismissed. At the time the trial began, on October 3, 1983, only appellees here, Yarema’s Lake, Inc., John E. Yarema, Jr. and Sherrill Yarema (collectively referred to as the “Yaremas”), S & S Land Company and S & S Development Company (collectively “S & S”), Ascot Estates, Inc. and Manor Associates still asserted claims against just two defendants, appellant, Exxon Corporation and its dealer, Patrick Storto. Each plaintiff based recovery upon strict liability, negligence, trespass and nuisance. The trespass actions of the Yaremas and S & S were dismissed on summary judgment by the trial court.

After seven weeks of trial, the jury returned a verdict for Exxon’s dealer, Patrick Storto, but found appellant, Exxon Corporation, liable as to every claim except for Manor Associates’ nuisance claim. After an untimely appeal was finally resolved in Yarema v. Exxon Corporation, 305 Md. *131 219, 503 A.2d 239 (1986), all cases were remanded to the trial court for disposition of certain open claims.

Because the Yaremas and S & S had previously received settlements from Amoco, Gulf and their dealers which exceeded the total amounts of compensatory and punitive damages awarded by the jury, Exxon moved to strike the judgments against it. The trial court ordered the compensatory awards to be “deemed satisfied” to reflect these payments; however, the court permitted the awards of punitive damages to stand.

The resulting awards against Exxon were:

Compensatory Plaintiff Damages Judgment 1 Punitive Damages Judgment
Yarema' Lake $ 20,000.00
Mr. & Mrs. Yarema $ 20,000.00
S&S $ 25,000.00
Ascot $140,000.00 $910,000.00
Manor $ 20,000.00 $ 25,000.00

Exxon asks whether the trial court erred:

I. By allowing punitive damages in favor of S & S and the Yaremas, even though these plaintiffs received settlements greater than the jury’s total award of both compensatory and punitive damages;
II. When it communicated with the jury out of presence of counsel when discussing the verdict sheet;
III. In denying Exxon’s Motions for Judgment as to the plaintiffs whose properties Exxon did not contaminate;
IV. In its rulings as to the standard required for an award of punitive damages; and
V. In allowing testimony concerning the hazardous effects of using contaminated water.

*132 I.

FACTS

When Exxon built its service station in 1965, it installed three new, carbon steel, underground storage tanks. In March 1979, the operator of the station notified Exxon that the tank which contained premium, unleaded gasoline was losing a significant quantity of gasoline. In response, Exxon evacuated and repaired the corroded tank. Although Exxon knew at the time that at least 1,100 gallons of gasoline had been lost from its tank, it took no immediate remedial measures to recover the gasoline or to prevent the spread of ground water contamination.

Based on inventory shortages amounting to at least 703 gallons, which occurred throughout October and early November 1980, the Exxon operator suspected a second leak, this time in the regular unleaded gasoline storage tank. Although Exxon subsequently contended that this shortfall could have been explained as a “bookkeeping error,” it drained and repaired the tank on November 4,1980. Exxon took no other remedial action at that time.

The following year, in May 1981, Baltimore County became aware of the contamination of the ground water in the Jacksonville area after tests revealed benzene, toluene and xylene in several wells. These toxic chemicals are organic hydrocarbons usually found together in gasoline. Subsequent tests by Exxon indicated the extent to which the ground water contamination had spread to neighboring properties, a fact that Exxon concedes. Because they are not proximately located to the Exxon station, it is uncontroverted that S & S’s property and Ascot’s office building lot were not contaminated by Exxon leaks. In contrast, tests by Exxon demonstrated conclusively that Exxon’s contamination has spread to five of thirteen building lots owned by Ascot as well as the extreme western portion of the Manor Shopping Center property.

With regard to property owned by Yaremas, the issue of contamination remains in dispute. Expert testimony indicated that the Yaremas’ property sits on a geological ridge, *133 which protects it from contamination originating from the Exxon station. Evidence that Yaremas’ property was contaminated, however, was adduced during trial. In October of 1981, the Baltimore County Health Department notified John Yarema that his well water was contaminated.

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

Related

Matiella v. Murdock Street LLC
District of Columbia, 2023
Blue Ink, Ltd. v. Two Farms, Inc.
96 A.3d 810 (Court of Special Appeals of Maryland, 2014)
Blue Ink v. Two Farms
Court of Special Appeals of Maryland, 2014
UBS Financial Services, Inc. v. Thompson
94 A.3d 176 (Court of Special Appeals of Maryland, 2014)
Exxon Mobil Corp. v. Albright
71 A.3d 30 (Court of Appeals of Maryland, 2013)
Exxon Mobil Corp. v. Ford
40 A.3d 514 (Court of Special Appeals of Maryland, 2012)
Marcas, L.L.C v. Board of County Commissioners
817 F. Supp. 2d 692 (D. Maryland, 2011)
Rosen v. Kore Holdings, Inc. (In Re Rood)
459 B.R. 581 (D. Maryland, 2011)
SAINT ANNES DEVELOPMENT CO., LLC v. Trabich
737 F. Supp. 2d 517 (D. Maryland, 2010)
Fisher v. McCrary Crescent City, LLC
972 A.2d 954 (Court of Special Appeals of Maryland, 2009)
Gallagher v. H v. Pierhomes, LLC
957 A.2d 628 (Court of Special Appeals of Maryland, 2008)
Biggs v. Eaglewood Mortgage LLC
582 F. Supp. 2d 707 (D. Maryland, 2008)
Khalifa v. Shannon
945 A.2d 1244 (Court of Appeals of Maryland, 2008)
Snyder v. Phelps
533 F. Supp. 2d 567 (D. Maryland, 2008)
Drummond v. Freeland (In Re Freeland)
360 B.R. 108 (D. Maryland, 2006)
Nnadili v. Chevron U.S.A. Inc.
435 F. Supp. 2d 93 (District of Columbia, 2006)
Zachair, Ltd. v. Driggs
762 A.2d 991 (Court of Special Appeals of Maryland, 2000)
Evans v. Dean Witter Reynolds, Inc.
5 P.3d 1043 (Nevada Supreme Court, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
516 A.2d 990, 69 Md. App. 124, 1986 Md. App. LEXIS 414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/exxon-corp-v-yarema-mdctspecapp-1986.