Rossaki v. NUS Corp.

695 A.2d 203, 116 Md. App. 11, 1997 Md. App. LEXIS 102
CourtCourt of Special Appeals of Maryland
DecidedJune 19, 1997
Docket1155, Sept. Term, 1996
StatusPublished
Cited by14 cases

This text of 695 A.2d 203 (Rossaki v. NUS Corp.) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rossaki v. NUS Corp., 695 A.2d 203, 116 Md. App. 11, 1997 Md. App. LEXIS 102 (Md. Ct. App. 1997).

Opinion

EYLER, Judge.

The question of first impression presented by this case is whether § 4-409 of Md.Code, Env. art. (1996 RepLVol.) creates a private cause of action for contamination of property. The trial court held that the statute did not create a private cause of action and dismissed appellants’ claim. While we do not reach the issue of whether § 4-409 creates a private cause of action applicable in certain circumstances, we will affirm the trial court’s judgment because § 4-409 does not create a private cause of action on behalf of buyers of real property against sellers or prior occupiers of such property.

Facts

On January 23, 1990, Torsak Rossaki and Mayuree Rossaki (“the Rossakis”), appellants, entered into a contract to purchase certain real property from Auto Clean, Inc. (“Auto Clean”), appellee. At that time, the property was leased to Amoco Oil Company (“Amoco”) and subleased to Able Associates, Ltd. (“Able”), appellee, which operated an Amoco brand gas station and convenience store. The contract initially was subject to a financing contingency, which later was removed. The contract did not make the sale subject to any other contingencies relevant to the issues in this case.

The Rossakis did testify, however, that there was an oral agreement between the parties that the sale of the property was contingent on an inspection of the property and a finding *15 that it was not contaminated. This was denied by Auto Clean. The property was environmentally assessed prior to settlement, but the parties dispute who controlled the testing entities, i.e., Auto Clean, or the Rossakis’ lender, or both. The parties also dispute whether the Rossakis obtained a copy of any or all of the reports relating to testing prior to settlement. In any event, American Environmental Group, Inc. was engaged to perform an environmental assessment, and in a report dated June 18, 1990, it recommended that soil analyses be performed. American Environmental Group, Inc. retained Geo Environmental, Inc. (“Geo”) to perform the analyses. An August 1990 report indicated that Geo found no significant contamination but stated that “possible contamination ... cannot be totally precluded.”

The Rossakis’ lender received a copy of the Geo report and requested additional testing in the northeast corner of the property. Additional analyses were performed by Geo, including soil borings to a depth of 10 feet. Geo reported its observations in a letter dated September 18,1990 and a report dated October 8, 1990. In the October 8 report, Geo recommended an additional analysis utilizing two bore holes to a depth of 25 feet in order to test the groundwater.

NUS Corporation (“NUS”), appellee, was retained to do additional work. A representative of NUS and a representative of Auto Clean met at the site to discuss the scope of NUS’s undertaking, but the participants recalled the conversation differently. The NUS representative testified that he asked about the groundwater and that the Auto Clean representative responded that another firm was doing the groundwater investigation. The Auto Clean representative testified that there was no discussion about groundwater. In any event, NUS performed three borings in the northeast corner of the property to a depth of 12 feet and reported its findings in a letter dated December 7, 1990. This letter was directed to the Rossakis and admittedly was received by them. In the letter, NUS stated that it found limited soil contamination with little likelihood of contact with groundwater and, consequently, suggested that remediation was not required. Sub *16 sequently, NUS was asked to provide a cost estimate for remediation, which it did while reiterating its opinion that remediation was environmentally unnecessary. In early January, at the request of the Rossakis’ lender, soil was removed from the northeast corner of the property. NUS then tested the site of removal and reported to the Rossakis that the contaminated soil had been removed from the site by the current owner. The Rossakis’ lender approved the financing and the parties settled on February 1, 1991. The Rossakis thereafter terminated Amoco’s lease and Abie’s sublease and entered into negotiations with Mobil Oil Corporation (“Mobil”) to lease the property to Mobil to operate a gasoline station and convenience store. Mobil performed its own environmental assessment of the property. The preliminary results of that assessment in May 1991 and the final results in August 1991 revealed severe, widespread contamination of soil and groundwater. Based on the results of that assessment, Mobil refused to lease the property.

On February 25, 1994, the Rossakis filed a complaint in the Circuit Court for Montgomery County against various parties. Subsequent to a ruling on various motions, the Rossakis filed an amended complaint asserting, to the extent here pertinent, a private cause of action under Env. art., § 4-409(a) against Auto Clean and Able and negligent misrepresentation against NUS. The trial court granted the motion to dismiss the amended complaint, filed by Auto Clean and Able, for failure to state a claim upon which relief can be granted. The negligent misrepresentation claim against NUS was tried, resulting in a jury verdict in favor of NUS. By special verdict form, the jury found that the Rossakis had proven their claim of negligent misrepresentation against NUS but also found that NUS had proven that the Rossakis were contributorily negligent. The Rossakis filed a motion for a new trial and, after it was denied, noted an appeal to this Court.

Questions Presented

Appellant presents the following questions:

*17 I. Whether the lower court erred in dismissing with prejudice the Rossakis’ claims under Section 4-401, et seq. of the Environment Article of the Annotated Code of Maryland (1996 Repl-Yol.).
II. Whether the jury’s verdicts with regard to negligent misrepresentation and contributory negligence are inherently inconsistent.
III. Whether the Rossakis had a duty to otherwise investigate NUS’ representations.

Appellees phrase the questions differently, but the essence is the same, except that appellees, Auto Clean and Able, also inquire as to whether, even assuming that § 4-409(a) does create a private cause of action, the Rossakis’ allegations are sufficient to state a claim. Finally, Auto Clean and Able inquire as to whether the Rossakis filed suit within the applicable period of limitations.

Discussion

A.

Availability of Private Cause of Action Under § 4-409(a)

The Rossakis, relying primarily on the plain language of § 4-409(a) of the Environment Article and the definitions of certain of its terms, conclude that the statute creates a private cause of action under the facts of this case. The Rossakis further argue that legislative history is consistent with the plain language and, finally, they rely on Board of Education of Prince George’s County v. Mayor and, Council of Riverdale, 320 Md. 384, 578 A.2d 207 (1990), as authority for the proposition that the Court of Appeals has recognized a private cause of action under the statute.

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Bluebook (online)
695 A.2d 203, 116 Md. App. 11, 1997 Md. App. LEXIS 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rossaki-v-nus-corp-mdctspecapp-1997.