Nematollahi v. United States

38 Fed. Cl. 224, 1997 U.S. Claims LEXIS 138, 1997 WL 378994
CourtUnited States Court of Federal Claims
DecidedMarch 7, 1997
DocketNo. 95-824C
StatusPublished
Cited by8 cases

This text of 38 Fed. Cl. 224 (Nematollahi v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nematollahi v. United States, 38 Fed. Cl. 224, 1997 U.S. Claims LEXIS 138, 1997 WL 378994 (uscfc 1997).

Opinion

OPINION

YOCK, Judge.

This contract action comes before the Court on the Defendant’s Motion for Summary Judgment pursuant to Rule 56 of the Rules of the United States Court of Federal Claims (RCFC). The plaintiffs’ Complaint seeks damages based on claims of contractual misrepresentation, unilateral mistake, and unjust enrichment arising out of the plaintiffs’ purchase of residential real estate from the United States Department of Housing and Urban Development (HUD) that contained contaminated well water.

After a full and careful examination of the pleadings, briefs, and submissions filed by the parties, the Court grants the Defendant’s Motion for Summary Judgment.

Factual Background

In or around August 1959, the Federal Government conducted a study and a report was compiled by the Robert A. Taft Sanitary Engineering Center, Cincinnati, Ohio, concerning the quality of ground water in certain parts of the State of Colorado. The report, Public Health Aspects of the Contamination of Ground Water in South Platte River Basin in Vicinity of Henderson, Colorado, examined the contamination of ground water at the Rocky Mountain Arsenal (RMA or Arsenal) and its vicinity.

From the available information, particularly the reports prepared by the U.S. Geological Survey and the University of Colorado, it is concluded that a portion of the shallow ground water aquifer in the area between Derby and Henderson is contaminated, and that wastes discharged from the Rocky Mountain Arsenal throughout the period 1943 to 1955 are a principal source of such contamination. Furthermore, sludge, which accumulated in the holding pond used dining that period, may be the source of continuing contamination.
* * * * * *
Available information is that there have been no authenticated cases of illness in the area which can be attributed to the contaminated water. However, the consumption of water over a period of 2 or 3 months containing appreciable amounts of one of these contaminants could adversely affect an individual’s health. Tentative maximum permissible limits for drinking and culinary water have been suggested by the Public Health Service. * * * It should be recognized that permissible limits are aimed at protecting the more susceptible individuals and that the average person [227]*227might consume water containing somewhat higher concentrations without injury to health.
❖ # * Ns # #
No information is available on the course and rate of flow of the contaminated water arriving in the vicinity of the South Platte River. Some of this water may rise to the surface. Any contaminated ground water reaching this vicinity which does not flow into the river would be expected to move in a northeast-wardly direction toward Brighton. The concentration of the chlorides will be reduced by dilution only; those of the chlorates and other substances may or may not be reduced by still other physical, chemical and biological processes. ífc ifc Hí $ *
All domestic water supplies from both shallow and deep wells drawing water from within the contaminated area should be checked for conductivity or chlorides, and all such waters showing conductivity or chloride concentrations in excess of 200 mg/1 should be examined to determine whether chlorates, 2, 4-D, or other contaminants exceed the maximum permissible limits for potable water.

Report at 2-3,15,18.

In addition, an EPA Abstract of the RMA, dated June 4,1987, described the state of the contaminants located at the RMA and its vicinity.

THE ROCKY MOUNTAIN ARSENAL (RMA) IS A FACILITY OWNED AND OPERATED BY THE UNITED STATES DEPARTMENT OF THE ARMY. IT WAS ESTABLISHED IN 1942 WITH THE PRIMARY MISSION OF MANUFACTURING AND ASSEMBLING CHEMICAL AND INCENDIARY MUNITIONS TO SUPPORT THE WAR EFFORT. AFTERWARDS, PESTICIDES AND HERBICIDES WERE PRODUCED ON-POST BY PRIVATE LEASES. MANY OF THESE SUBSTANCES, THEIR BY-PRODUCTS AND RESIDUES WERE LATER DISPOSED OF ON-POST. THE RMA OFF-POST SITE IS LOCATED NORTHEAST OF DOWNTOWN DENVER, COLORADO, ADJACENT TO RMA. THE AREA IS NEARLY COMPLETELY DEVELOPED WITH RESIDENTIAL SUBDIVISIONS, INDUSTRIAL FACILITIES AND GRAVEL OPERATIONS. SOUTH ADAMS COUNTY WATER AND SANITATION DISTRICT (SACWSD) WAS CREATED IN 1953 TO SUPPLY APPROXIMATELY 30,000 CUSTOMERS WITH WELL WATER FROM THE ALLUVIUM AND BEDROCK. RECENT STUDIES BY EPA AND SACWSD INDICATE THAT SIGNIFICANT CONCENTRATIONS OF ORGANIC SOLVENTS ARE PRESENT IN THE LOCAL AND REGIONAL GROUND WATER SYSTEM WHICH IS THE MAIN SOURCE OF DRINKING WATER FOR SACWSD. THIS OPERABLE UNIT ADDRESSES TREATMENT OR REPLACEMENT OF CONTAMINATED GROUND WATER WITHIN THE RMA OFF-POST SITE PRIOR TO ITS USE AS DRINKING WATER BY CUSTOMERS OF THE SACWSD. THE HAZARDOUS SUBSTANCES OF PRIMARY CONCERN PRESENT IN THE GROUND WATER SUPPLYING THE SACWSD WELLS INCLUDE: TRICHLOROETHYLENE (TCE), TETRACHLOROETHYLENE (PCE), 1, 1, 1-TRICHLOROETHANE, 1, 1-DICHLO-ROETHANE, 1, 1-DICHLOROETHY-LENE. AND TRANS-1, 2-DICHLO-ROETHYLENE. OTHER VOLATILE, SEMI-VOLATILE, AND NON-VOLATILE ORGANIC COMPOUNDS ARE PRESENT IN THE GROUND WATER IN AREAS ADJACENT TO THE UP-GRADIENT OF RMA OFF-POST SITE, BUT HAVE NOT BEEN DETECTED IN SACWSD SUPPLY WELLS TO DATE. VINYL CHLORIDE HAS ALSO BEEN DETECTED UPGRADIENT FROM THE SACWSD WELLS.

In December 1988, at the request of the U.S. Army Program Manager’s Office for Rocky Mountain Arsenal, Environmental Science and Engineering, Inc., prepared a Remedial Investigation and Chemical Specific Applicable or Relevant and Appropriate Requirements Final Report, which evaluated the nature and extent of contamination that may [228]*228have resulted from contaminant migration from the RMA.

On or about July 7, 1992, the plaintiffs, Kamran and Tracy Nematollahi (the Nematollahis), signed a sales contract and addenda with HUD to purchase a house located at 11285 124th Avenue East, Brighton, Colorado (the property), which is located approximately seven miles northeast of the RMA. HUD signed the contract and addenda on or about July 9, 1992. The contract contained various “Conditions of Sale,” which in part, stated that:

B. Seller makes no representations or warranties cornering [sic] the condition of the property, including but not limited to mechanical systems, dry basement, foundation, structural, or compliance with code, zoning or building requirements and will make no repairs to the property after execution of this contract. Purchaser agrees to accept the property in the condition existing on the date of this contract and acknowledges responsibility for satisfying itself as to the full condition of the property and of laws, regulations and ordinances affecting the property.
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0. This contract contains the final and entire agreement between Purchaser and Seller and they shall not be bound by any terms, conditions, statements, or representations, oral or written, not contained in this contract. [Emphasis added.]

Contract at 2.

Included in the addenda to the sales contract was an as-is agreement signed by the plaintiffs:

The sales contract you are to execute contains a provision on the reverse side of Page 1 which warns you that

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Cite This Page — Counsel Stack

Bluebook (online)
38 Fed. Cl. 224, 1997 U.S. Claims LEXIS 138, 1997 WL 378994, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nematollahi-v-united-states-uscfc-1997.