Jones v. Texaco, Inc.

945 F. Supp. 1037, 27 Envtl. L. Rep. (Envtl. Law Inst.) 20517, 1996 U.S. Dist. LEXIS 17449, 1996 WL 676138
CourtDistrict Court, S.D. Texas
DecidedNovember 13, 1996
DocketCivil Action H-96cv0015
StatusPublished
Cited by8 cases

This text of 945 F. Supp. 1037 (Jones v. Texaco, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. Texaco, Inc., 945 F. Supp. 1037, 27 Envtl. L. Rep. (Envtl. Law Inst.) 20517, 1996 U.S. Dist. LEXIS 17449, 1996 WL 676138 (S.D. Tex. 1996).

Opinion

MEMORANDUM AND ORDER

CRONE, United States Magistrate Judge.

Pending before the court is Defendant Texaco, Inc.’s (“Texaco”) motion for partial summary judgment (# 11). Texaco seeks summary judgment on Plaintiffs Lloyd Jones (“Jones”), Edwin Lee Murray (“Murray”), Willard D. Sessions (“Sessions”), Murray Gobert Trucking and Excavation, Inc. (“Gobert”), and General Truck Parts, Inc.’s (“General Truck”) claims of negligence, gross negligence, and strict liability, as well as their request for declaratory and injunctive relief, to the extent those requests are based on the common law. Plaintiff Murray voluntarily dismissed his action on October 18, 1996.

Having reviewed the motion, the submissions of the parties, the pleadings, and the applicable law, the court is of the opinion that Texaco’s motion for partial summary judgment should be granted.

I. Background,

In November 1904; J.H. and Annie Koinm transferred to Texaco a parcel 'of land located in Humble, Harris County, Texas, commonly known today as the Humble Office and Industrial Park. From 1904 until 1969, Texaco operated an oil field waste disposal site on the property. During the period of its ownership, Texaco deposited oil sludge and various wastes into earthen pits dug on the property.

In March 1969, Texaco transferred the property to Hubert Vestal (“Vestal”). A clause in the deed recording .this transfer references these sludge pits. The deed from Texaco to Ves.tal, dated March 28, 1969, specifically states:

there [are] located on said land multiple earthen pits containing oil sediment, water and various other wastes and substances, together with sundry excavations, junk and other objects.

The deed' also provided that Vestal had inspected the property, was fully aware of the pits and residual oil, and accepted the land “as is.”- The deed confirms:

Grantee further acknowledges that he has conducted an.on the ground inspection of said land and the above enumerated conditions and is familiar therewith and hereby accepts the risk of any and all conditions thereon, whether known or unknown at the date of this instrument.

In April 1969, Vestal sold the property to S. Miles Strickland III and Doyle Bond. In March 1970, Strickland transferred his portion to Boyd. In December 1977, Bond conveyed the property to Duane Pettyjohn. In January 1978, Pettyjohn sold the property to Houston Lighting and Power (“HL & P”). In August 1983, HL & P transferred the property to Humble Mini-Storage, Inc. From May through December 1985, Humble Mini-Storage transferred the property as separate lots to the plaintiffs.

When the plaintiffs purchased the properties, a layer of topsoil, asphalt, and, in some cases, structures concealed the pits where the various materials were deposited. Eventually, however, the wastes began to seep out of the ground and became apparent on the surface. The plaintiffs engaged an environmental engineering firm to perform an investigation consistent -with the National Contingency Plan (“NCP”) on August 22, 1994. The plaintiffs incurred response costs in compliance with the NCP for removal and remedial action.

According to the plaintiffs, they did not know, of the contamination damage until after the results cf. the environmental testing became available in Fall 1994; They further assert that they did not learn of the impact the contamination had on their property values until the completion of an appraisal on *1040 September 14,1995. At deposition, however, Plaintiff Jones admitted that he had observed oil contamination on his property in 1991 or 1992 when he brought fill in to cover residue on the ground. He also wrote a letter to R.W. Bambeck of General Truck, dated June 15, 1993, informing him that he would no longer pay rent for a portion of the property due to “area contamination.” The record further reflects that in September 1993, General Truck protested its 1993 property tax evaluation by the Harris County Appraisal District on the basis that a lower assessed value of the land was warranted due to “contamination—(oil).” Moreover, at deposition, Bambeck, the president and owner of General Truck, admitted that he had received Jones’s letter of June 15, 1993, in which Jones complained of “area contamination.”

The plaintiffs initially filed suit in state court in Harris County, Texas, on December 6, 1995. In the petition, they alleged the following claims for relief:

1. Response costs pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42 U.S.C. § 9601 et seq.;
2. Declaratory judgment stating that Texaco is liable to plaintiffs;
3. Mandatory injunction ordering Texaco to commence removal of wastes as remedial action to cure damage;
4. Preliminary injunction forcing Texaco to comply with any clean-up and remediation orders;
5. Common law negligence;'
6. Gross negligence; and
7. Strict liability.

Texaco, however, had previously filed a voluntary Chapter 11 reorganization petition under the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. See Jointly Administered Chapter 11 Case Nos. 87-B-20142, 87-B-20143, and 87-B-20144. On March 23, 1988, the bankruptcy court confirmed Texaco’s Second Amended Joint Plan of Reorganization, discharging Texaco from any and all claims arising before the date of confirmation. On January 4, 1996, Texaco removed this case to the United States District Court for the Southern District of Texas based on the relation of the claims to the previous bankruptcy proceeding. See 28 U.S.C. §§ 157,1334, 1452(a). Removal was also authorized under this court’s federal question jurisdiction based on the plaintiffs’ CERCLA claims. See 28 U.S.C. §§ 1331, 1441(c).

On May 8, 1996, Texaco moved for partial summary judgment on the plaintiffs’ state common law claims of negligence, gross negligence, and strict liability. Texaco contends that these claims are barred by the statute of limitations. Texaco further asserts that a purchaser of real property cannot maintain a tort claim against a prior owner for alleged contamination of the property before the subsequent purchaser acquired his interest in the property.

II. Analysis

A. Summary Judgrrpent Standard

Rule 56(c) provides that “[summary] judgment shall' be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue of material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P.

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945 F. Supp. 1037, 27 Envtl. L. Rep. (Envtl. Law Inst.) 20517, 1996 U.S. Dist. LEXIS 17449, 1996 WL 676138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-texaco-inc-txsd-1996.