FOREST CITY v. Leemon Oil Co.

577 N.W.2d 150
CourtMichigan Court of Appeals
DecidedMay 5, 1998
DocketDocket Nos. 177520, 187676
StatusPublished
Cited by27 cases

This text of 577 N.W.2d 150 (FOREST CITY v. Leemon Oil Co.) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FOREST CITY v. Leemon Oil Co., 577 N.W.2d 150 (Mich. Ct. App. 1998).

Opinion

577 N.W.2d 150 (1998)

FOREST CITY ENTERPRISES, INC., and Nationwide Insurance Company, Plaintiffs/Appellants-Cross-Appellees,
v.
LEEMON OIL COMPANY, Defendant/Appellee-Cross-Appellant.
FOREST CITY ENTERPRISES, INC., and Nationwide Insurance Company, Plaintiffs-Appellants,
v.
LEEMON OIL COMPANY, Defendant-Appellee.

Docket Nos. 177520, 187676.

Court of Appeals of Michigan.

Submitted October 16, 1997, at Detroit.
Decided February 10, 1998, at 9:10 a.m.
Released for Publication May 5, 1998.

*151 *152 *153 Mason, Steinhardt, Jacobs & Perlman, Professional Corporation by Jonathan B. Frank, Southfield, and Law Offices of Richard A. Barr by Richard A. Barr, Bingham Farms, for Plaintiffs.

Pedersen, Keenan, King, Wachsberg & Andrzejak by Daniel P. King, Farmington Hills, for Defendant.

Before SAAD, P.J., and O'CONNELL and M.J. MATUZAK[*], JJ.

SAAD, Presiding Judge.

In this environmental cleanup dispute between a commercial landlord and tenant, the landlord, Forest City Enterprises, Inc., and its insurer, Nationwide Insurance Company (hereafter Forest City) appeal from certain rulings by the trial court, and the tenant, Leemon Oil Company cross appeals. We consolidated the appeals and affirm in all respects.

I

BACKGROUND AND PROCEDURAL HISTORY

Forest City was the proprietor of a parcel of commercial real estate in Macomb County that, for at least twenty-five years, was used by a retail dry cleaner and an adjacent gas station. Although different companies occupied the gas station over the twenty-five-year period, defendant Leemon Oil leased the gas station from March 1, 1982, until December 1985.

In 1988, a routine environmental assessment of the property revealed two types of contamination in the subsurface soils and groundwater: "BTEX" (gasoline contaminants, benzene, toluene, ethylbenzene, and xylene) and chlorinated solvents (associated with the dry-cleaning process). (At trial, there was evidence presented that, before 1990, Forest City had not told the dry cleaner that disposal was by septic tank [rather than sewer] and therefore the dry cleaner had been discharging chlorinated solvents through a septic tank and field system.)

*154 Upon discovery of the contamination, Forest City undertook a massive cleanup.

In 1990, Forest City filed this claim against its former tenant, Leemon Oil. Forest City's complaint alleged that on August 11, 1983, a Leemon Oil tanker spilled about 2250 gallons of gasoline in the immediate area of its gas pumps, causing the whole or a substantial part of the contamination at the site. In response, Leemon Oil admitted the existence of a spill, but alleged that its agent had adequately cleaned up the spill in 1983.

Following amendments, Forest City eventually asserted five common-law theories against Leemon Oil (breach of lease contract, waste, nuisance, indemnity, and trespass), and three statutory claims.[1] Pursuant to special verdict forms, the jury found that Leemon Oil did not breach its lease or commit waste, but that it created a nuisance on land that was not part of the leased land. (The indemnity claim was tried with the breach of contract claim and the jury found no liability.) The trial court ultimately concluded that the nuisance claim was barred by the three-year statute of limitations.

For reasons not clear in the record, the only statutory claim that was tried was the MERA claim, and with regard to that claim the jury found that Forest City's damages were $1,399,501 but that 95.5 percent of the damages were attributable to Forest City's own negligence.[2] Following supplemental proceedings regarding Forest City's MERA claim, the trial court found that Leemon Oil should contribute a total of $6,927 under the MERA for the cleanup costs. Accordingly, the trial court entered a judgment of no cause of action for the waste and contract claims and for $6,927 for the MERA claim.

Leemon Oil thereafter moved for costs and mediation sanctions, while Forest City moved for a new trial, judgment notwithstanding the verdict, amended findings of the trial court, and an amended judgment. Leemon Oil was awarded $98,000 in mediation sanctions on May 15, 1995. This appeal and cross appeal followed.

II

ANALYSIS

A

Forest City asserts that the trial court erred in its interpretation of the MERA in concluding as a matter of law that the BTEX contamination was "divisible" from the chlorinated solvent contamination. According to Forest City, because the property was contaminated by Leemon Oil and the dry cleaners, § 12c of the MERA, M.C.L. § 299.612c; M.S.A. § 13.32(12c), requires the trial court to determine if the two contaminating substances were divisible or indivisible. Forest City submits that the contaminants were intermingled and indivisible. Thus, because Leemon Oil caused some or all of the "indivisible" contamination, Forest City contends that Leemon Oil should be jointly and severally liable with the dry cleaners for the entire $1.4 million, subject to Leemon Oil's contribution rights under subsection 12c(3).

We find no merit to this argument, for multiple reasons. As a threshold matter, Forest City's argument incorrectly assumes that contamination must have been caused by either Leemon Oil or the dry cleaner. However, Leemon Oil was not the only tenant of the gas station. At trial, issues pertaining to who caused the contamination, when the contamination occurred, and who should be responsible for the contamination were hotly disputed.

Moreover, Forest City's argument also incorrectly assumes that it should bear no fault for any portion of the spill. Forest City's principal argument concerning divisibility *155 is one of statutory construction. Therefore, our primary goal is to ascertain and give effect to the Legislature's intent. Haworth, Inc. v. Wickes Mfg. Co., 210 Mich.App. 222, 227, 532 N.W.2d 903 (1995). A court must look to the object of a statute and the harm that it is designed to remedy and strive to apply a reasonable construction to accomplish the purpose of the statute. In this endeavor, we should not abandon the canons of common sense. Marquis v. Hartford Accident & Indemnity (After Remand) 444 Mich. 638, 644, 513 N.W.2d 799 (1994).

At the time the trial court heard this matter, § 12c of the MERA[3] provided, in relevant part:

(1) If 2 or more persons acting independently cause a release or threat of release that results in response activity costs, or damages for injury to, destruction of, or loss of natural resources, and there is a reasonable basis for division of harm according to contribution of each person, each person is subject to liability under section 12 only for the portion of the total harm that the person caused. However, a person seeking to limit its liability on the ground that the entire harm is capable of division shall have the burden of proof as to the divisibility of the harm and as to the apportionment of liability.
(2) If 2 or more persons cause or contribute to an indivisible harm that results in response activity costs, or damages for injury to, destruction of, or loss of natural resources, each person is subject to liability under section 12 for the entire harm.
(3) A person may seek contribution

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

Related

People of Michigan v. Tynathan Ameire Felder
Michigan Court of Appeals, 2022
Lloyd Howard v. Erika Christensen
Michigan Court of Appeals, 2018
John Michael Jones v. Westminster LLC
Michigan Court of Appeals, 2018
Ronnisch Construction Group, Inc v. Lofts on the Nine, LLC
886 N.W.2d 113 (Michigan Supreme Court, 2016)
Pontiac Country Club v. Waterford Township
299 Mich. App. 427 (Michigan Court of Appeals, 2013)
Terlecki v. Stewart
754 N.W.2d 899 (Michigan Court of Appeals, 2008)
Schaendorf v. Consumers Energy Co.
739 N.W.2d 402 (Michigan Court of Appeals, 2007)
Angott v. Chubb Group of Insurance Companies
717 N.W.2d 341 (Michigan Court of Appeals, 2006)
ANR Pipeline Co. v. 60 Acres of Land
418 F. Supp. 2d 933 (W.D. Michigan, 2006)
Fansler v. Richardson
698 N.W.2d 916 (Michigan Court of Appeals, 2005)
Brown v. Gainey Transportation Services, Inc
663 N.W.2d 519 (Michigan Court of Appeals, 2003)
Zdrojewski v. Murphy
657 N.W.2d 721 (Michigan Court of Appeals, 2003)
Jackson County Hog Producers v. Consumers Power Company
592 N.W.2d 112 (Michigan Court of Appeals, 1999)
Pitsch v. Ese Michigan, Inc
593 N.W.2d 565 (Michigan Court of Appeals, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
577 N.W.2d 150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/forest-city-v-leemon-oil-co-michctapp-1998.