Kaplan v. Peterson

674 So. 2d 201, 1996 WL 283690
CourtDistrict Court of Appeal of Florida
DecidedMay 31, 1996
Docket94-1926
StatusPublished
Cited by10 cases

This text of 674 So. 2d 201 (Kaplan v. Peterson) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kaplan v. Peterson, 674 So. 2d 201, 1996 WL 283690 (Fla. Ct. App. 1996).

Opinion

674 So.2d 201 (1996)

Bernard KAPLAN, Appellant,
v.
Kenneth PETERSON, et al., Appellees.

No. 94-1926.

District Court of Appeal of Florida, Fifth District.

May 31, 1996.

*202 William L. Pence and Robyn D. Neely of Akerman, Senterfitt & Eidson, P.A., Orlando, for Appellees Otis L. Phelps and Carol D. Phelps.

No Appearance for Appellee Kenneth Peterson.

W. SHARP, Judge.

The issue presented in this appeal is whether a current owner of commercial real property can recover from the prior owners who allegedly caused the damage, the expenses and costs of cleaning up the property required by the state or city, which stemmed from an underground storage tank leaking petroleum into the soil and underground waters. The prior owners allegedly placed an underground storage tank on the property, and either discharged the pollutants (petroleum) or permitted it to be discharged, during the time of their ownership. The trial court granted the prior owners' motion for judgment on the pleadings on the ground that caveat emptor bars not only the current owners' two counts that allege fraudulent misrepresentation and negligent misrepresentation, but also the current owner's count based on a violation of chapter 376. We reverse, but certify a question of great public importance to the Florida Supreme Court.[1]

The current owner, Kaplan (as Trustee), sued Kenneth Peterson and Otis and Carol Phelps for the cost to clean up the property (Silver Star Park) caused by the underground leaking petroleum storage tank. Kaplan purchased the property from the Phelps on December 31, 1986, and received an assignment of a lease for three buildings and surrounding land pursuant to which Peterson was doing business as B and A Volkswagen Unlimited. The lease commenced on January 1, 1985, and continued until January of 1990.

On December 18, 1989, a Phase I environmental site assessment report of the property was made, which indicated contamination of the site and ground water, caused by an underground storage tank. As a result, Kaplan undertook extensive clean up efforts, and brought suit against the Phelps in July of 1990 to recoup his costs and expenses. He had sued Peterson on October 26, 1987, on other claims pertaining to the lease, and later amended his complaint in that action to include clean up costs and expenses. In 1993, the suits against Peterson and the Phelps were consolidated. Kaplan's suit against Peterson also alleged counts for breach of contract and waste. The sufficiency of that complaint is not involved in this appeal.[2]

The parties agree that although some exceptions are recognized to caveat emptor in the context of sales of commercial real property, Kaplan's complaint in this case failed to plead them.[3] Thus Kaplan's appeal turns solely on whether chapter 376 creates a new cause of action available to private parties against those responsible for polluting land and ground water, or one that is no longer barred by the traditional defense of caveat emptor.

*203 The doctrine of caveat emptor was found to be sufficiently unappetizing and unfair in the context of residential real property to prompt the Florida Supreme Court to abolish it in this state. See Johnson v. Davis, 480 So.2d 625 (Fla.1985); Mansur v. Eubanks, 401 So.2d 1328 (Fla.1981); Gable v. Silver, 258 So.2d 11 (Fla. 4th DCA, cert. discharged, 264 So.2d 418 (Fla.1972). However, although questioned and criticized,[4] the doctrine still prevails in Florida with regard to sales of commercial real property. See Futura Realty v. Lone Star Building Centers (Eastern), Inc., 578 So.2d 363 (Fla. 3d DCA), rev. denied, 591 So.2d 181 (Fla.1991).

In Futura, the current owner of commercial real property, relying on the rule of strict liability for ultrahazardous activity resulting in damage to a neighbor's property,[5] brought suit against the immediate previous owner of property as well as its lessee for failing to inform it about pollution problems on the land until after the sale. The Third District rejected Futura's claims on the ground of caveat emptor. It said:

In the case at hand, Futura was simply not bringing a claim as an injured adjoining landowner. The commercial property vendor owes no duty for damage to the land to its vendee because the vendee can protect itself in a number of ways, including careful inspection and price negotiation. This is the vital legal and practical distinction between the duty owed a neighbor and the duty owed a successor in title which T & E Industries failed to identify.

Futura at 365. However, Futura did not involve a claim based on chapter 376.

Mostoufi v. Presto Food Stores, Inc., 618 So.2d 1372 (Fla. 2d DCA), rev. denied, 626 So.2d 207 (Fla.1993) did involve such a claim. In Mostoufi, as in this case, the plaintiff essentially argued section 376.313 (1989) created a cause of action which is not barred by caveat emptor. However, in that case, the claim for damages was based solely on the reduction in value of the property caused by a discharge of petroleum products from an underground storage tank. The court said loss of market value of real estate was not encompassed in section 376. It also said that chapter does not create a new cause of action for polluters of land and ground water, if the party so damaged is a current land owner and the polluter was a prior owner.

Courts are reluctant to read into a statute a new private cause of action not expressly provided for by the Legislature in the new law. However, chapter 376[6] makes little sense if it does not do so, or at least if in the case of a violation of that statute by a person who caused the discharge, caveat emptor continues to hold sway. Chapter 376 addresses the serious ground and water pollution problems (among others) caused by contamination of soil and ground water, from leaking underground storage tanks. It declares that it is vital to protect Florida's land and water resources from such pollution, and makes it a top priority to prevent and quickly remedy any pollution. It also expressly prohibits discharge of pollutants into the soil or water, contrary to state standards,[7] which allegedly occurred in this case, and requires any person discharging pollutants to "immediately undertake to contain, remove, and abate the discharge to the department's satisfaction." § 376.305(1), Fla.Stat. (1989).

Section 376.313(3) also provides that nothing in the law affects the right of any person to clean up and remove pollutant, and that doing so shall not affect that person's rights against any third party whose acts or omission caused or contributed to the discharge. Attorney fees and costs of litigation may be awarded. § 376.313(5), Fla.Stat. (1989). Pursuant to other sections,[8] the Department *204 is charged with the duty of recovering from the person who caused the discharge, all sums expended by the state for clean up. Persons who clean up a site are entitled to contribution for costs and expenses from the persons causing the discharge.[9] And current owners can be required to clean up a polluted site.[10]

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Cite This Page — Counsel Stack

Bluebook (online)
674 So. 2d 201, 1996 WL 283690, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kaplan-v-peterson-fladistctapp-1996.