Leamy v. East Bay Municipal Utility Dist. CA 1/1

CourtCalifornia Court of Appeal
DecidedDecember 4, 2023
DocketA167275
StatusUnpublished

This text of Leamy v. East Bay Municipal Utility Dist. CA 1/1 (Leamy v. East Bay Municipal Utility Dist. CA 1/1) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leamy v. East Bay Municipal Utility Dist. CA 1/1, (Cal. Ct. App. 2023).

Opinion

Filed 12/4/23 Leamy v. East Bay Municipal Utility Dist. CA 1/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION ONE

KRIS LEAMY et al., Plaintiffs and Appellants, A167275 v. EAST BAY MUNICIPAL UTILITY (Contra Costa County DISTRICT, Super. Ct. No. MSC21-00753) Defendant and Respondent.

In 2011, the East Bay Municipal Utility District (EBMUD) purchased property from Kris and Robin Leamy (the Leamys or plaintiffs) for construction of a water pumping plant. During negotiations in 2009, a representative of EBMUD told the Leamys the pumping plant would emit no audible sound. After they sold the property, in 2013 and 2014, the Leamys participated in public meetings at which EBMUD represented the sound emitted from the plant with mitigation measures in place would be approximately equivalent to that of a library. In 2019, however, Kris Leamy visited a fully constructed plant and was “shocked” at the level of noise she heard. The Leamys filed a lawsuit alleging several fraud-related and breach of contract claims, seeking declaratory relief and rescission of the sale agreement. The trial court granted a motion for summary judgment in favor of EBMUD on the grounds that the applicable statutes of limitations barred plaintiffs’ claims, and their fraud claims failed because EBMUD’s representations were not statements of past or existing fact on which a fraud claim could be premised. We will affirm. I. FACTUAL AND PROCEDURAL BACKGROUND A. The Leamys Sell Property to EBMUD EBMUD is a public agency that provides water to 1.44 million customers. In doing so, EBMUD uses many miles of pipeline and 124 pumping plants, which move water from one pressure zone to another. In 2006, the EBMUD Board of Directors approved the “ ‘Water Treatment and Transmission Improvements Program’ ” (WTTIP), a program to construct and improve water facilities in the greater Lamorinda area, which includes Lafayette, Orinda, Moraga, and Walnut Creek. As one aspect of the WTTIP, EBMUD identified the need for a new pumping plant, the Sunnyside Pumping Plant, to increase pumping capacity, replace aging infrastructure, and provide water service to customers in the Valley View Pressure Zone. In June 2011, to obtain a site for the Sunnyside Pumping Plant, EBMUD purchased an undeveloped 0.58-acre portion of the Leamys’ 19-acre property in Lafayette in lieu of acquiring it through the power of eminent domain. B. EBMUD Representations During Negotiations During negotiations for the sale of their property, the Leamys contacted Paul Kenny, an EBMUD real estate representative, to inquire about the potential noise that the Sunnyside Pumping Plant would produce after it was constructed and running. Kris Leamy asked Kenny about “potential sound

2 emitted” from the proposed Sunnyside Pumping Plant. Kenny represented to her “that any sound emission from the pumping station would not be audible.” In January 2009, Robin Leamy e-mailed Kenny to ask if there was a nearby EBMUD pumping plant he and Kris could visit to determine the noise level, size, and visual impact of the proposed project. Kenny suggested they visit the Holly Pumping Plant, noting it was operational so they “should be able to listen to it,” and that they would be able to determine the noise of the future Sunnyside Pumping Plant by listening to the Holly Pumping Plant. Plaintiffs visited the Holly Pumping Plant on Sunday, February 1. The next day, Robin sent Kenny an e-mail stating, in relevant part: “I did go by the Holly Pumping Station this past weekend. Are there certain times those stations run? I ask because on Super Bowl Sunday (right around 3:00 p.m.), I couldn’t hear a thing (which is great). I’m just wondering if these things are going continuously—or they kick in at certain intervals.” Kenny forwarded the e-mail to David Rehnstrom, an EBMUD engineer, asking him if the Holly Pumping Plant ran continuously. Rehnstrom told Kenny that “on the maximum day demand (summer), the pumps may pump 16 hours and avoid the high energy use of noon to 6:00 pm,” during “lower demand periods the pumps would operate less,” and that “[e]ither way, the pumps should not pump 24 hours.” Kenny then arranged for an EBMUD engineer to visit the Holly Pumping Plant with the Leamys to ensure the pumps were running at the time of their visit. Kenny called Robin to inform him he had arranged for the Leamys to visit the Holly Pumping Plant while it was running. On February 4, 2009, Robin e-mailed Kenny that he would check with Kris “ ‘on timeframes to head to the Holly Pumping station with you during

3 daylight hours—I’ll be back to you by tomorrow on this.’ ” The Leamys never followed up with Kenny to arrange a visit to a pumping plant when it was running. Satisfied with their prior visit, and in reliance on the lack of any audible noise from the Holly Pumping Plant, the Leamys completed the sale of their property to EBMUD in 2011. C. 2013 and 2014 Public Meetings In July 2013, EBMUD employees met with the Leamys in the first “Leamy Realty Group” meeting. At the meeting, Kris commented that she had been told that there would be “no noise” at the Sunnyside Pumping Plant. An EBMUD representative responded that was not the case and EBMUD had “never stated such information.” He indicated, however, that EBMUD had hired a sound architect to determine how best to mitigate pump noise. EBMUD’s sound architect conducted short-term and long-term ambient noise surveys on and around the property where the Sunnyside Pumping Plant would be built. Kris was informed of those surveys, permitted at least one noise meter to be located on their property, and requested that a measurement device be placed on EBMUD’s southern property line. She also requested that sound testing occur after the Labor Day holiday weekend so that the measurement would be more representative of typical noise in the area. In an e-mail to Rehnstrom, Kris offered that “should the research find that there will be discernible noise beyond what EBMUD is willing to pay for as part of the mitigation process, [she] would like the opportunity to contribute to the mitigation efforts.” Later that fall, EBMUD distributed a document entitled “Sunnyside Pumping Plant Environmental Noise Assessment and Preliminary Design Recommendations,” which provided substantial detail about its noise

4 mitigation plans. The report described the sound pressure levels of its equipment (transformers, pumps, and exhaust fans) as perceived at three feet away and discussed that the sound level would drop as the distance from the plant is doubled. The report stated that the operation of its transformer would result in sound levels of 31 dBA1 at the closest property line, while levels at more distant property lines would be lower. The report stated that 30 dBA was equivalent to the amount of sound emitted by a library. The operation of the exhaust fan would result in sound levels of 31 to 32 dBA at the closest property line. For the pumps, the report found that the “worst case operational noise level” at the closest property line would be 47 dBA, which would exceed the City of Lafayette’s noise ordinance. The report recommended sound mitigation strategies to reduce the noise emissions from pump operations. With the acoustical treatments recommended, and in the “worst case” scenario where three pumps were operating, the sound level would be 35 dBA at the closest property line; with a single pump operating it would be 31 dBA.

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Bluebook (online)
Leamy v. East Bay Municipal Utility Dist. CA 1/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leamy-v-east-bay-municipal-utility-dist-ca-11-calctapp-2023.