Pantry, Inc. v. Stop-N-Go Foods, Inc.

796 F. Supp. 1171, 23 Envtl. L. Rep. (Envtl. Law Inst.) 20250, 1992 U.S. Dist. LEXIS 10128, 1992 WL 153075
CourtDistrict Court, S.D. Indiana
DecidedJune 29, 1992
DocketIP 88-1345-C
StatusPublished
Cited by6 cases

This text of 796 F. Supp. 1171 (Pantry, Inc. v. Stop-N-Go Foods, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pantry, Inc. v. Stop-N-Go Foods, Inc., 796 F. Supp. 1171, 23 Envtl. L. Rep. (Envtl. Law Inst.) 20250, 1992 U.S. Dist. LEXIS 10128, 1992 WL 153075 (S.D. Ind. 1992).

Opinion

ENTRY GRANTING PLAINTIFF’S SECOND MOTION FOR PARTIAL SUMMARY JUDGMENT

TINDER, District Judge.

The parties’ cross-motions for summary judgment require the Court to reach a single conclusion of law: Does a property owner “dispose of waste” in violation of Kentucky Revised Statute § 224.40-100 if portions of its petroleum product inventory leak inadvertently from underground storage tanks into the surrounding soil? The Pantry argued that the statute is violated any time that solid waste is released and abandoned without a permit. Stop-N-Go countered that the statute prohibits intentional “dumping” only. After reviewing the parties’ arguments and submissions, the Court determines that Stop-N-Go violated Section 224.40-100 as a matter of law and that The Pantry’s Second Motion for Partial Summary Judgment should be granted.

FINDINGS OF FACT

On December 18, 1987 Plaintiff The Pantry and Defendants Stop-N-Go Foods, Inc. and Tri-State Stop-N-Go, Inc. (collectively “Stop-N-Go”), executed an Asset Purchase Agreement (“Agreement”) conveying sixteen convenience stores (“Stores”) from The Pantry to Stop-N-Go. Five of the Stores located in Kentucky have facilities for the retail sale of gasoline.

Article 13 of the Purchase Agreement contains the entirety of the warranties, covenants, and other provisions that were agreed to by the parties concerning the environmental condition of the Properties. Article 13 contains the following definition of the term “Environmental Requirements,” which is used throughout the article:

“Environmental Requirements” shall mean: federal, state, county or local statutes, laws, rules, regulations, ordinances, codes, licenses, permits or standards in effect as of the date of execution hereof imposed by any governmental authority having jurisdiction in the matter as of the date of execution hereof, relating to environmental matters, including, by way of illustration and not limitation, the Resource Conservation and Recovery Act, as amended (42 U.S.C. § 6901 et seq.) and the Comprehensive Environmental Response, Compensation and Liability Act, as amended (42 U.S.C. § 9601 et seq.).

Paragraphs C and D of Article 13 of the Purchase Agreement contain the following warranties of Stop-N-Go (referred to as the “Seller”) to The Pantry (referred to as the “Buyer”) concerning the Stores (referred to as the “Property”):

C. As of the date of closing, the real property including leased real property, which is the subject of this Agreement (the “Property”), and such Property’s use at the time of closing and prior uses by Seller, and to Seller’s knowledge any other person, to the best of Seller’s knowledge substantially comply and have at all times substantially complied with, and Seller is not in violation of and has not violated, in connection with the ownership, use, maintenance or operation of the Property in the conduct of the business related thereto, Environmental Requirements. Except for the Property suffering the Known Contamination, no corrective action, work, repairs, construction, or other expenditures with respect to the Property is required by *1173 Environmental Requirements. Except for the Property suffering the Known Contamination, no hazardous or toxic materials, substances, pollutants, contaminants, or waste have been, by Seller or to Seller’s knowledge any other person, to the best of Seller’s knowledge released into the environment or deposited, discharged, placed or disposed of at, on, or to Seller’s knowledge near the Property at levels requiring any corrective action under Environmental Requirements as defined herein, and the Property has not been used at any time by Seller as a landfill or waste disposal site, and Seller has no knowledge that the Property has been used by any person as such.
D. No notices of any violation of Environmental Requirements relating to the property of its use have been received by Seller. There are no writs, injunctions, decrees, orders or judgments outstanding and no lawsuits, claims, proceedings, or investigations pending or threatened relating to the ownership, use, maintenance or operation of the property, with the exception of the Known Contamination.
With the exception of the Property suffering the Known Contamination, Purchaser accepts the locations, tanks, and dispensing equipment in their present condition and assumes responsibility therefor as of the date of closing hereof, and agrees to hold Seller harmless from any loss, cost, damage or expense arising from or related to the existence of or operation of such gasoline storage tanks and facilities, despite the fact that changes in the Environmental Requirements may occur subsequent to the date of execution hereof, and such changes in the future may dictate action not required at the time of execution hereof, with the exception that in the event that during a period of six (6) months after the closing, corrective action is required as the result of the existence of contamination or lack of tigtness [sic] in tanks or dispensing equipment prior to the closing and delivery of possession hereunder at levels requiring corrective action, pursuant to the Environmental Requirements. Seller shall indemnify and hold Purchaser harmless from any loss, cost, damage or expense, including reasonable attorneys’ fees, resulting from and related directly to such necessity for corrective action. Such indemnity shall not relate to consequential or indirect expense or loss such as, by way of illustration and not limitation, interruption of business, loss or revenue or profit, or interference with ingress and egress to the Property, and in the event any action or proceeding is instituted to enforce any obligation hereunder relating to such indemnity, Purchaser shall have the burden of proof to establish that such corrective action is the result of contamination or such lack of tightness existing prior to the date of closing at levels requiring such corrective action pursuant to the Environmental Requirements in place as of the date of closing. •

In anticipation of the sale, Stop-N-Go hired Losack, Inc., an environmental consulting firm, to perform tests on the facilities’ underground storage tanks (“USTs”) and obtain soil and/or groundwater samples from each of the stores where gasoline was sold. Losack conveyed its test results to Stop-N-Go on December 8, 1987. (Defs.’ Resp. Pl.’s Reqs. Admis. ¶ 6.) These test results were completed on December 3 and 4, 1987. (See Id. ¶¶ 8, 10, 12, 14, 16.) The test results, which are undisputed in this matter, disclosed that there were varying degrees of contamination in the soil or ground water at each of the five Kentucky locations. The test results disclosed the following levels of the substances listed: 1

*1174 a. 1704 2nd Street, Henderson, Kentucky

Sample Number Benzene Toluene Xylene Total Hydrocarbons

B#l, S#1 0.82 24.14 1.26 229

B#l, S#2 <0.10 22.0 0.80 32

B#l, S#3 <0.10 2.68 1.87 74

B#2, S#1 <0.10 1.47 0.97 41

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Related

United States v. Santiago
846 F. Supp. 1486 (D. Wyoming, 1994)
Pantry, Inc. v. Stop-N-Go Foods, Inc.
844 F. Supp. 1338 (S.D. Indiana, 1994)
Paper Recycling, Inc. v. Amoco Oil Co.
856 F. Supp. 671 (N.D. Georgia, 1993)

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Bluebook (online)
796 F. Supp. 1171, 23 Envtl. L. Rep. (Envtl. Law Inst.) 20250, 1992 U.S. Dist. LEXIS 10128, 1992 WL 153075, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pantry-inc-v-stop-n-go-foods-inc-insd-1992.