JBG/Twinbrook Metro Ltd. Partnership v. Wheeler

697 A.2d 898, 346 Md. 601, 1997 Md. LEXIS 128
CourtCourt of Appeals of Maryland
DecidedAugust 6, 1997
Docket80, Sept. Term, 1996
StatusPublished
Cited by35 cases

This text of 697 A.2d 898 (JBG/Twinbrook Metro Ltd. Partnership v. Wheeler) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
JBG/Twinbrook Metro Ltd. Partnership v. Wheeler, 697 A.2d 898, 346 Md. 601, 1997 Md. LEXIS 128 (Md. 1997).

Opinion

RODOWSKY, Judge.

The plaintiff in this case appeals from a judgment on a jury verdict in favor of the defendants in an action for damages based on the subsurface percolation of gasoline into plaintiffs land from a gasoline service station on adjacent land. The issues concern the construction of Maryland Code (1982, 1996 Repl.Vol.), § 4-409(a) of the Environment Article (Env.), the applicability of assumption of the risk to what the parties have treated as a claim of trespass quare clausum fregit, and the sufficiency of the plaintiffs evidence to establish liability for trespass on the part of two oil companies which at different times sold gasoline to the service station owner and operator.

Bobby Joe Wheeler (Wheeler), one of the defendants below, owns and operates the service station. For five or more years prior to 1982 the station dispensed Gulf brand gasoline, the product of Gulf Oil Corporation, a predecessor of the defendant Chevron U.S.A. Inc. (Chevron). 1 Since 1990 Wheeler has sold Exxon brand gasoline, the product of the defendant, Exxon Company, U.S.A. (Exxon).

The station is located in Montgomery County at 1901 Rock-ville Pike, on the southeast corner of Rockville Pike and *605 Thompson Avenue. 2 The station fronts approximately 150 feet on Rockville Pike and extends to the east approximately 165 feet along the south side of Thompson Avenue. The underground storage tanks (USTs) are in the southwest quarter of the service station property, the nearest approximately eighty-eight feet from the eastern border of the station.

The eastern boundary of the station abuts the western boundary of a parcel extending along the south side of Thompson Avenue to Chapman Avenue and known as 1901 Chapman Avenue. This property is owned by the plaintiff, JBG/Twin-brook Metro Limited Partnership (JBG), and it is improved by a three-story masonry office building with basement built in 1960. The office building sits on the southerly half of the property at 1901 Chapman Avenue, with the building’s west wall approximately 100 feet from the boundary with the gasoline station. An embankment along the property line slopes down from the gas station elevation to an asphalt paved parking lot (the West Lot) that lies between the foot of the embankment and a walkway in front of the entrance located on the west side of the office building. Another asphalt paved parking lot on 1901 Chapman Avenue lies between the north side of the office building and Thompson Avenue (the North Lot). A single entrance/exit serves both lots on Thompson Avenue.

Gasoline floats on water, and subsurface, free phase gasoline can float on underground water and be carried in the direction of the water flow. The generalized ground water flow for the two properties is from southwest to northeast, that is, from the USTs in the southwest corner of the gas station to its northeast corner which abuts the northwest corner of 1901 Chapman Avenue.

Chevron originally developed the Rockville Pike property as a service station, leased it to Wheeler in 1976, and sold it to *606 Wheeler in September 1978. Included in the sale were the then existing USTs. Sometime in 1978 or 1979 the station manager discovered a hole in one of the USTs, and the hole was subsequently patched. Chevron continued to supply Wheeler with gasoline through 1981.

From 1982 until 1990 Wheeler operated the service station independently of any affiliation with an oil company, purchasing gasoline from independent distributors. In September 1990 Wheeler entered into an agreement with Exxon under which Wheeler agreed to sell Exxon products exclusively for ten years in consideration of Exxon’s paying $488,300 for remodeling the station and installing new USTs and dispensers.

Two months later, when the old USTs were unearthed and removed, under the supervision of the Maryland State Department of Environment (MDE), two of the old tanks were found to contain holes. 3 MDE ordered Wheeler to remove approximately 1,600 tons of contaminated soil from his property and to install monitoring wells (MWs) to determine whether any gasoline had migrated from the tank site. In January 1991 readings from these wells indicated that gasoline had migrated throughout the service station property. At the direction of MDE, Wheeler installed additional wells on his property and, with the permission of the then adjoining property owner, Equitable Life Assurance Society (Equitable), placed wells on 1901 Chapman Avenue. Wheeler also began removing free phase gasoline from the subsurface of the service station property.

After undertaking a preliminary investigation, JBG, on February 8, 1991, entered into a contract with Equitable to purchase for $28.5 million a portfolio of investment properties in the Twinbrook Metro area of Montgomery County that included 1901 Chapman Avenue. Under the contract JBG had sixty days to complete a due diligence analysis.

*607 JBG hired Hygienetics Inc. (Hygienetics) to perform an environmental analysis of all of the properties. An initial report of March 27, 1991, identified 1901 Chapman Avenue as having the potential for an on-site contamination from off-site sources. On April 5, 1991, Hygienetics then reported “the discovery of free phase gasoline at the 1901 Chapman Avenue site.” This second report states that “[a]t least 6.5 feet of gasoline has been confirmed to exist in monitoring well MW-5” and that the contamination is “believed [to be] a direct result of a release [of gasoline] from a UST at the adjacent Rockville Service Center Exxon.” 4

A third report prepared by Hygienetics and submitted to Equitable on April 10, 1991, identified “[t]he existence of approximately two feet of free product at MWW-7.” 5 This report indicated that “the current recovery operation is inadequate ...” and observed that “[t]he existence of free product in MWW-7 suggests that the plume [of free phase gasoline] may be approaching the building foundation.”

Within the first two weeks of MDE’s having ordered remediation, approximately 500 gallons of free phase, subsurface gasoline were recovered by use of a product skimmer from a well on the station site. Wheeler’s employees hand-bailed a few hundred additional gallons.

Wheeler also installed a remediation system that recovered free phase gasoline and contaminated ground water from a well located at the Thompson Avenue entrance of 1901 Chapman Avenue. From there the liquids were pumped to a facility erected in the northeast corner of Wheeler’s property where the gasoline was separated and the water treated. By *608 April 1991 approximately seventy-five gallons of gasoline had been recovered through this system.

JBG expressed its concern to Equitable over the inclusion of 1901 Chapman Avenue in the properties to be purchased. Equitable then obtained from MDE an estimate of $150,000 as the total cost of the corrective work, apparently on both the Exxon station and the office building sites.

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Bluebook (online)
697 A.2d 898, 346 Md. 601, 1997 Md. LEXIS 128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jbgtwinbrook-metro-ltd-partnership-v-wheeler-md-1997.