National Telephone Cooperative Ass'n v. Exxon Corp.

38 F. Supp. 2d 1, 1998 WL 966144
CourtDistrict Court, District of Columbia
DecidedNovember 19, 1998
DocketCiv.A. 96-02504 (CKK)
StatusPublished
Cited by21 cases

This text of 38 F. Supp. 2d 1 (National Telephone Cooperative Ass'n v. Exxon Corp.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Telephone Cooperative Ass'n v. Exxon Corp., 38 F. Supp. 2d 1, 1998 WL 966144 (D.D.C. 1998).

Opinion

MEMORANDUM OPINION

KOLLAR-KOTELLY, District Judge.

In a five-count Complaint sounding in common-law negligence, trespass, nuisance, and strict liability, the Plaintiff National Telephone Cooperative Association (“NTCA”) seeks compensatory and punitive damages from Defendant Exxon Corporation (“Exxon”) for gasoline contamination that allegedly has migrated from Exxon’s underground storage tanks to NTCA’s adjacent property. Pending before the Court are Exxon’s Motion for Summary Judgment, NTCA’s Opposition thereto, and Exxon’s Reply. After carefully reviewing the voluminous exhibits, deposition testimony, and controlling law, the Court grants in part and denies in part Exxon’s motion. The Court enters judgment in favor of Exxon on Count II (strict liability), Count III (trespass), Count IV (private nuisance), and Count V (public nuisance). Furthermore, the Court enters judgment in favor of Exxon with respect to Count I’s claim of negligent maintenance and operation. The Court, however, denies summary judgment with respect to Count I’s negligent- *4 remediation claim. Moreover, the-Court holds that NTCA may pursue its economic-damages claims without proof of physical harm to its property, and finds that there exist genuine issues of material fact that preclude summary judgment on NTCA’s prayer for punitive damages.

I. BACKGROUND

Although the parties have thoroughly chronicled all relevant events that span the past few decades, the salient facts necessary to resolve the pending Motion for Summary Judgment may be briefly summarized. Exxon and its predecessors have owned a gasoline service station at 2600 Pennsylvania Avenues, N.W. since the .early 1920s. See Answer ¶ 10; Def.’s Motion fdr Summ.J. (“Def.’s MSJ”) at Ex. 3 (Standard Oil Co., Plat of Service Station, May 1927). Since at least 1953, Exxon has warehoused its gasoline and other petroleum products in underground storage tanks (“USTs”). See Pl.’s Opp’n at Ex.3 (1953 permit to install tanks). Then in February 1971, Exxon installed five new steel USTs. See id. at Ex. 2 (building inspector report). Despite adding these new USTs, Exxon elected not to remove the tanks that it had installed in 1953. See id. at Ex. 6 (Dep. of Yeh at 107-09). In the years that have elapsed, Exxon’s USTs have periodically suffered leaks that have released gasoline into the Exxon property. See id. at Ex. 7 (Dep. of Campbell at 144-46); Def.’s MSJ at 3-4 (admitting that its USTs leaked in 1985 and 1990).

NTCA’s property is located adjacent to the Exxon station. 1 On March 13, 1990, NTCA’s building manager, Theil “Butch” Jackson, witnessed, what an Exxon engineer later described as, “a black waste-oil like substance” leaking through the below-grade basement wall of the NTCA building that abuts the Exxon station. See PL’s’ Opp’n at Ex. 11 (Dep. of Rhodes). When notified of this, Exxon dispatched a company with which it contracts, Handex of Maryland, Inc. (“Handex”), to assess the damage. See Def.’s MSJ at Ex.20 (Dep. of Otwell at 26); id. at Ex. 21 (letter from Handex to NTCA, Apr. 10, 1990). Exxon ultimately decided to repair the NTCA wall at its own cost. Between April 11 and April 16, 1990, Structural Preservation Systems repaired the wall. See PL’s Opp’n at Ex. 17 (Dep. of Kraus at Ex.4). On August 15, 1990, Handex employees “removed [the remaining] oil stain from adjacent building.” PL’s Opp’n at Ex. 20 (Bates HAN 4523).

Approximately five years later, black material again began to leak through the NTCA wall. See PL’s Opp’n at Ex. 36 (Dep. of Jackson at 84-87). During this interim period, NTCA’s building manager has testified that nothing “caused [him] to question whether or not the problem was repaired.” Id. at Ex. 36 (Dep. of Jackson at 88).

Shortly before this incident, NTCA had decided to sell its building and retreat to the Virginia suburbs. See PL’s Opp’n at Ex. 18 (Dep. of Fairhead at 13). Despite overtures from several potential buyers, NTCA maintains that' the gasoline that allegedly continues to migrate from the Exxon station onto its property has diminished its market value. Recently, however, the NTCA property was placed under contract to be sold for $6.6 million despite the present environmental problems. See Def.’s MSJ at Ex. 28 (purchase agreement, Aug. 13, 1998). This figure exceeds the value at which NTCA’s own expert appraised the property in its uncontaminated state. See id. at Ex. 29 (Chaney & Associates’ Limited Appraisal, Update Report, Aug. 24,1998).

II. Disoussion

A. The Standard for Evaluating Motions for Summary Judgment.

A party is entitled to summary judgment if the pleadings, depositions, answers *5 to interrogatories, and affidavits demonstrate that there is no genuine issue of material fact in dispute and that the moving party is entitled to judgment as a matter of law. See Fed.R.CivP. 56(c); Tao v. Freeh, 27 F.3d 635, 638 (D.C.Cir.1994). Although a court should draw all reasonable inferences from the supporting records submitted by the nonmoving party, the mere existence of a factual dispute, by itself, is not sufficient to bar summary judgment. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The adverse party’s pleadings must evince the existence of a genuine issue of material fact. See id. at 247-48, 106 S.Ct. 2505. To be material the factual assertion must be capable of affecting the substantive outcome of the litigation; to be genuine, the issue must be supported by sufficiently admissible evidence such that a reasonable trier-of-fact could find for the nonmoving party. See id.; Laningham v. United States Navy, 813 F.2d 1236, 1242-43 (D.C.Cir.1987). Mere allegations or denials in the adverse party’s pleadings are insufficient to defeat an otherwise proper motion for summary judgment. Rather, the nonmoving party bears the affirmative duty to present, by affidavits or other means, specific facts showing that there is a genuine issue for trial. See id. at 248-49, 106 S.Ct. 2505. The adverse party must do more than simply “show that there is some metaphysical doubt as to the material facts.” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986).

B. NTCA’s Claims Are Timely Pursuant to the Continuing-Tort Doctrine

Exxon initially moves to dismiss NTCA’s Complaint in its entirety based on the District of Columbia’s statute of limitations. Although a plaintiff normally must bring suit within three years to recover damages for real-property injuries, see

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Matiella v. Murdock Street LLC
District of Columbia, 2023
Robinson v. Farley
264 F. Supp. 3d 154 (District of Columbia, 2017)
Jose A. Aguilar v. RP MRP Washington Harbour, LLC
98 A.3d 979 (District of Columbia Court of Appeals, 2014)
Acosta Orellana v. CROPLIFE INTERN.
711 F. Supp. 2d 81 (District of Columbia, 2010)
Gallagher v. H v. Pierhomes, LLC
957 A.2d 628 (Court of Special Appeals of Maryland, 2008)
SEC v. Patel, et al.
2008 DNH 053 (D. New Hampshire, 2008)
Nnadili v. Chevron U.S.A. Inc.
435 F. Supp. 2d 93 (District of Columbia, 2006)
Gilbert v. Atlantic Trust
2006 DNH 046 (D. New Hampshire, 2006)
In Re WorldCom, Inc.
320 B.R. 772 (S.D. New York, 2005)
Cook v. Rockwell International Corp.
273 F. Supp. 2d 1175 (D. Colorado, 2003)
Caldwell v. District of Columbia
201 F. Supp. 2d 27 (District of Columbia, 2001)
Moore v. Texaco, Inc.
244 F.3d 1229 (Tenth Circuit, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
38 F. Supp. 2d 1, 1998 WL 966144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-telephone-cooperative-assn-v-exxon-corp-dcd-1998.