Gutierrez v. C&H Sugar, Inc.

District Court, N.D. California·Decided November 15, 2023·No. 3:23-cv-03192·Unknown

Opinion

FREDDY GUTIERREZ, Case No. 23-cv-03192-SI

Plaintiff, ORDER DENYING MOTION TO v. DISMISS PLAINTIFF'S COMPLAINT AND DENYING MOTION TO STRIKE Defendant. Re: Dkt. No. 31

Before the Court is defendant’s motion to dismiss plaintiff’s complaint and motion to strike class allegations. Dkt. No. 31. Plaintiff opposes. Dkt. No. 34. Pursuant to Civil Local Rule 7-1(b), the Court determines that the motions are suitable for resolution without oral argument, and VACATES the November 17, 2023 hearing. For the reasons stated below, the Court DENIES the motions. BACKGROUND1 I. General Allegations Plaintiff Freddy Gutierrez (“Gutierrez”) brings this class action against defendant C&H Sugar, Inc. (“C&H”) “for its release of noxious odors onto Plaintiff’s property.” Dkt. No. 1 (“Compl.”) ¶ 1, 2, 4. Defendant owns and operates a sugar refinery and municipal wastewater treatment facility in Crockett. The C&H sugar facility (“Facility”) offloads, stores, and refines 800,000 tons of raw sugar annually. Id. ¶¶ 2, 12. Plaintiff resides in Crockett and alleges the odors

1 For purposes of this motion to dismiss, the Court treats as true the factual allegations as the Facility releases onto his property have caused damages through public and private nuisance and negligence. Id. ¶ 3. The Facility refines sugar for packaging, treats wastewater from the sugar refining process, and treats municipal wastewater from the town of Crockett. Id. ¶ 12, 15. The sugar refining process produces a “waste sludge, called ‘mud,’ which produces large quantities of hydrogen sulfide and is highly odiferous.” Id. ¶ 17. This “mud” is treated at the wastewater treatment plant along with the municipal wastewater, “which contains sewage and is also highly odiferous.” Id. ¶ 19. The resulting byproducts create “extremely noxious odors” that “can escape the Facility and permeate the surrounding residential areas if the Facility is not properly maintained and/or operated.” Id. ¶ 20, 21. According to plaintiff, defendant has failed to prevent the emissions from “escaping into the adjacent residential neighborhood” and as a result, plaintiff’s property “has been and continues to be physically invaded by noxious odors” on “frequent, recurrent, and continuing occasions too numerous to list.” Id. ¶ 22. The noxious odors that entered plaintiff’s property originated from the Facility “as a result of inadequate, improper, and/or negligent operation and maintenance” of the wastewater treatment activities. Id. ¶ 23. The noxious odor emissions have also “been the subject of frequent and persistent complaints from residents in the nearby residential area.” Id. ¶ 25. Defendant has failed to adequately collect, capture, mitigate, and destroy its odorous compounds and emissions to prevent them from escaping into the surrounding area. Id. ¶¶ 31-34. Specifically, defendant has “failed to install and maintain adequate technology to properly control its emissions.” Id. ¶ 39. Plaintiff provides specific technologies defendant has allegedly failed to properly operate or maintain. Id. ¶ 39. According to plaintiff, the “nuisance conditions created by Defendant are abatable with reasonable care, effort, and diligence.” Id. ¶ 77. The odors have prevented plaintiff from opening the windows in his home to get fresh air. Id. ¶ 28. Additionally, “[n]umerous households within the proposed Class Area have contacted Plaintiff’s counsel documenting the noxious odors they attribute to the Defendant’s Facility.” Id. ¶ 27. One putative class member reported the odor “kept us from opening our windows or enjoying remain inside in a closed-up house, couldn’t enjoy our yard/deck.” Id. ¶ 28. Another putative class member reported she is “not able to keep windows or doors open for air flow as well as the smell doesn’t allow for outdoor activities without nausea.” Id. She described the odor as smelling like “rotten egg or sulfur.” Id. The odors “are offensive, would be offensive to a reasonable person of ordinary health and sensibilities, and have caused property damage.” Id. ¶ 42. The Bay Area Air Quality Monitoring Division (“BAAQMD”) and the California Environmental Protection Agency (“CalEPA”) regulate defendant’s facility. Id. ¶ 29. The BAAQMD “received more than 350 complaints between September and November of 2022 from local residents regarding intense ‘hydrogen sulfide’ and ‘sewage’ odors emanating from Defendant’s Facility.” Id. ¶ 30. The BAAQMD and CalEPA have issued “numerous” Notice of Violations against defendant for the “odor nuisance” and facility violations, some of which are listed in plaintiff’s complaint. Id. ¶ 30, 36. The physical “invasion” of plaintiff’s property and that of the proposed class by noxious odor omissions has resulted in damages including diminution in the value of plaintiff’s property, loss of property value, and unreasonable interference with the right of use and enjoyment of plaintiff’s property. Id. ¶¶ 43, 79, 87, 92. The odors are “indecent and/or offensive to the senses” and obstruct the “free use” of plaintiffs’ property by causing plaintiffs to “remain inside their homes and forego use of their yards” and “keep doors and windows closed,” and by causing plaintiffs “annoyance, discomfort, embarrassment, and reluctance to invite guests to their homes.” Id. ¶ 68. Plaintiff and proposed class members have suffered damages different in kind from that of the public "in the form of diminished property values and/or loss of use and enjoyment of their private property.” Id. ¶¶ 46, 74. II. Class Allegations Plaintiff seeks to represent a class preliminarily defined as: “All owner/occupants and renters of residential property residing within one (1) mile of the Facility’s property boundary between the date three (3) years predating the filing of this Complaint and the present.” Dkt. No. 1 (“Compl.”) the location of all persons properly included in the Class.” Id. ¶ 51. The approximate number of residential households within the proposed class area is over 2,200. Id. ¶ 53. The class area is also home to a “wide range of commercial and recreational activities, including but not limited to manufacturing, construction, retail trade, ministry, education, dining, and lodging.” Id. ¶ 44. Plaintiffs allege that numerous questions of law and fact predominate over any individual questions, including, but not limited to: (a) Whether and how Defendant negligently and knowingly failed to reasonably construct, maintain, and operate the Facility to prevent off-site odor emissions; (b) Whether Defendant owed any duties to Plaintiff; (c) Which duties Defendant owed to Plaintiff; (d) Which steps Defendant has and has not taken in order to control the emission of noxious odors through the construction, operation, and maintenance of its Facility; (e) Whether and to what extent the Facility’s noxious odors were dispersed over the Class Area; (f) Whether it was reasonably foreseeable that Defendant’s failure to properly construct, operate, and maintain the Facility would result in an invasion of Plaintiff’s property interests; (g) Whether the degree of harm suffered by Plaintiff and the Class constitutes a substantial annoyance or interference; and (h) The proper measure of damages incurred by Plaintiff and the Class. Id. ¶ 55. Plaintiff alleges that the claims of each class member, if brought individually, “would require proof of many of the same material and substantive facts, utilize the same complex evidence including expert testimony, rely upon the same legal theories and seek the same type of relief.” Id. ¶ 56. “Numerous households in the proposed Class Area have contacted Plaintiff’s counsel documenting the noxious odors they attribute to the Defendant’s Facility.” Id. ¶ 27. Additionally, the Bay Area Air Quality Monitoring Division (“BAAQMD”) received more than 350 complaints between September and November of 2022 from local residents regarding the odors emanating from defendant’s facility, and BAAQMD has i

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Gutierrez v. C&H Sugar, Inc., (N.D. Cal. 2023).

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