New York Telephone Co. v. Mobil Oil Corp.

99 A.D.2d 185, 473 N.Y.S.2d 172, 1984 N.Y. App. Div. LEXIS 16538
CourtAppellate Division of the Supreme Court of the State of New York
DecidedFebruary 21, 1984
StatusPublished
Cited by19 cases

This text of 99 A.D.2d 185 (New York Telephone Co. v. Mobil Oil Corp.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York Telephone Co. v. Mobil Oil Corp., 99 A.D.2d 185, 473 N.Y.S.2d 172, 1984 N.Y. App. Div. LEXIS 16538 (N.Y. Ct. App. 1984).

Opinions

OPINION OF THE COURT

Fein, J.

The complaint in this action, commenced in September, 1981, alleges in two causes of action that in October, 1961 defendant Manreb Assoc., Inc. (Manreb), was the owner of premises 2485 Second Avenue, New York, New York, at which it operated a retail gasoline service station; Manreb had an agreement with Mobil Oil Corporation (Mobil) to supply gasoline to Manreb for resale at the premises; in October, 1961, Mobil and Manreb caused to be installed at the premises 12 underground gasoline tanks and abandoned 10 existing underground gasoline tanks, which they control. It is further alleged that the tanks were negligently, carelessly and recklessly installed and maintained and that the abandoned tanks were not adequately and properly closed and sealed and that they continuously discharged and released gasoline onto the subsurface of the premises and into plaintiffs’ underground facilities on a steady, regular basis from the time of initial installation up until and past September 15, 1978 and that by reason thereof the property of the plaintiffs was flooded and considerably damaged.

[187]*187The complaint further alleges that the gasoline station is presently operated by defendant Gene Ramerez, doing business as Tri-Bridge Mobil Service Station (Ramerez), and that prior to and since September 15, 1978, Mobil supplied and continues to supply Ramerez with gasoline for resale to the public.

The first cause of action against Mobil and Manreb alleges that the wrongful maintenance of the underground gasoline tanks created a nuisance.

The second cause of action against the present lessee-operator of the Mobil station, as well as Mobil, the gasoline supplier, alleges that their negligence in failing to maintain the gasoline tanks in a safe condition free from leakage caused plaintiffs to sustain damage to their property.

Manreb moved to dismiss the complaint pursuant to CPLR 3211 (subd [a], par 5) on the ground that the action was barred by the three-year Statute of Limitations applicable to property damage actions (CPLR 214, subd 4).

Manreb’s motion was premised upon undisputed evidence that, pursuant to condemnation of the property by eminent domain in December, 1969, title was transferred from Manreb to the City of New York (City), which thereafter, in or about 1971, leased the gas station to the present operator. The issue is whether divestiture of Manreb’s ownership and leasehold rights in 1969 rendered it immune from liability for the property damage sustained in 1978.

Mobil moved to dismiss the complaint as against it pursuant to CPLR 3211 (subd [a], pars 1, 5, 7) in that documentary evidence establishes plaintiffs’ claim is time barred and fails to state a cause of action.

Mobil and Manreb cross-claimed against each other for indemnity. Mobil moved to dismiss the cross claim of Manreb.

Special Term properly dismissed the complaint as against Manreb, as well as Mobil’s cross claim, ruling that the action for property damage against Manreb was barred by the three-year Statute of Limitations (CPLR 214, subd 4) since the complaint alleges that Manreb owned the premises until 1974 and the action was begun in 1981. [188]*188Moreover, the undisputed documentary evidence establishes that Manreb’s title to the property was divested by eminent domain in 1969.

Special Term should have dismissed the first cause of action against Mobil for the same reasons.

Plaintiffs assert that a cause of action for nuisance and continuing trespass is stated so that the three-year Statute of Limitations is not a bar even though the original negligent acts of the defendants may have occurred more than three years prior to commencement of the action. They argue that the leaking gasoline constitutes a nuisance and continuous trespass giving rise to a cause of action as long as the trespass or nuisance continues. This is premised upon the principle of continuous trespass where a new cause of action accrues upon the date of the injury or any new injury (509 Sixth Ave. Corp. v New York City Tr. Auth., 15 NY2d 48; Galway v Metropolitan El. Ry. Co., 128 NY 132; Rahabi v Morrison, 81 AD2d 434). They also rely upon the principle stated in Schmidt v Merchants Desp. Transp. Co. (270 NY 287, 300, mots for rearg den 271 NY 531): “Through lack of care a person may set in motion forces which touch the person or property of another only after a long interval of time (cf. Ehret v. Village of Scarsdale, 269 N.Y. 198); and then only through new, fortuitous conditions. There can be no doubt that a cause of action accrues only when the forces wrongfully put in motion produce injury. Otherwise, in extreme cases, a cause of action might be barred before liability arose.”

To the same effect are Durant v Grange Silo Co. (12 AD2d 694) and Queensbury Union Free School Dist. v Walter Corp. (82 AD2d 204, app dsmd 55 NY2d 745).

However, the principle of these cases is of no avail here because defendants Mobil and Manreb did not maintain exclusive use and enjoyment of the property beyond 1971 at the latest, after the property was condemned by the City and leased to nonmoving defendant Ramerez. The owner of land ceases to be liable in negligence for its dangerous condition when the ownership of the premises or possession and control pass to another before the injury is sustained. Even where a continuing trespass or nuisance exists, liability of the owner terminates after the conveyance at such [189]*189time as the new owner has had a reasonable opportunity to discover the condition by making prompt inspection and necessary repairs (Pharm v Lituchy, 283 NY 130, 132; Rufo v South Brooklyn Sav. Bank, 268 App Div 1057). The Restatement of Torts, Second (§§ 351-354, and Comments with respect thereto) is in accord. Section 354 of the Restatement emphasizes the application of the principle where the transfer of ownership has been by eminent domain.

Section 352 of the Restatement provides: “Except as stated in § 353, a vendor of land is not subject to liability for physical harm caused to his vendee or others while upon the land after the vendee has taken possession by any dangerous condition, whether natural or artificial, which existed at the time that the vendee took possession.”

Comment a to section 352 provides in pertinent part: “The vendee is required to make his own inspection of the premises, and the vendor is not responsible to him for their defective condition, existing at the time of transfer.”

Section 353 of the Restatement makes the vendor liable only where he conceals or fails to disclose a dangerous condition known to him. There is no such allegation here.

Plainly the involuntary transfer of ownership of the premises, together with the offending tanks, to the City, which in turn released the premises to Ramerez, discharged both Mobil and Manreb from liability for any negligence, nuisance or trespass that may have existed. A period of time far in excess of the three-year Statute of Limitations expired before the 1978 incident. The City has had ownership and Ramerez has had operation, possession and control for more than nine years, with ample opportunity to discover the condition and make the necessary repairs. The fact that the alleged damage occurred in 1978 does not give rise to a cause of action against either Mobil or Manreb who were out of ownership since 1969.

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

Related

Taggart v. Costabile
131 A.D.3d 243 (Appellate Division of the Supreme Court of New York, 2015)
Johnson v. Proskauer Rose LLP
129 A.D.3d 59 (Appellate Division of the Supreme Court of New York, 2015)
Herman v. Herman
121 A.D.3d 565 (Appellate Division of the Supreme Court of New York, 2014)
State v. Prato
45 Misc. 3d 722 (New York Supreme Court, 2014)
Chi Wei Chan v. 2368 West 12th Street LLC
25 Misc. 3d 823 (New York Supreme Court, 2009)
People v. Sturm, Ruger & Co.
309 A.D.2d 91 (Appellate Division of the Supreme Court of New York, 2003)
Valencia Ex Rel. Franco v. Lee
55 F. Supp. 2d 122 (E.D. New York, 1999)
Opinion No. (1999)
Nebraska Attorney General Reports, 1999
Fetter v. DeCamp
195 A.D.2d 771 (Appellate Division of the Supreme Court of New York, 1993)
Bernard v. 345 East 73rd Owners Corp.
181 A.D.2d 543 (Appellate Division of the Supreme Court of New York, 1992)
Branch v. Mobil Oil Corp.
788 F. Supp. 531 (W.D. Oklahoma, 1991)
Camillery v. Getty Refining & Marketing Co.
170 A.D.2d 567 (Appellate Division of the Supreme Court of New York, 1991)
Snyder v. Jessie
145 Misc. 2d 293 (New York Supreme Court, 1989)
Schlesinger v. Rockefeller Center, Inc.
119 A.D.2d 462 (Appellate Division of the Supreme Court of New York, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
99 A.D.2d 185, 473 N.Y.S.2d 172, 1984 N.Y. App. Div. LEXIS 16538, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-telephone-co-v-mobil-oil-corp-nyappdiv-1984.