Rothenberg v. Longwood Auto Specialists, Inc.

2 Mass. L. Rptr. 439
CourtMassachusetts Superior Court
DecidedAugust 1, 1994
DocketNo. 91-4948
StatusPublished

This text of 2 Mass. L. Rptr. 439 (Rothenberg v. Longwood Auto Specialists, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rothenberg v. Longwood Auto Specialists, Inc., 2 Mass. L. Rptr. 439 (Mass. Ct. App. 1994).

Opinion

Whitehead, J.

This is an action brought by one property owner against another property owner to recover damages suffered as the result of hazardous waste contamination. The plaintiffs claims are based on the provisions of G.L.c. 21E, negligence and nuisance.

The case was tried by the Court between June 16, 1994 and June 22, 1994. The following constitute the Court’s findings, rulings and order for judgment pursuant to M.R.Civ.R 52.

Findings of Fact

The plaintiff, Eric Rothenberg, is an attorney who specializes in taxation issues. He has been practicing privately since 1980. Since the early to mid-1980s he has also invested in and managed real estate. In the late 1980s he was a co-founder of a bank, and for some period of time thereafter he participated in the management of the bank as a director and member of the loan committee.

The defendants Adam Porikos and Maria Porikos own the property at 11 Longwood Avenue in Brookline. They acquired the property in 1981. Since that time, the defendant Longwood Auto Specialists, Inc. has operated a gasoline service station, known as Mike’s Texaco, on the premises. Adam Porikos owns all of the stock in Longwood Auto Specialists, Inc. He has been physically present at the gasoline station and has personally managed it since 1981. Maria Porikos has never worked at the station or personally participated in any of the station’s operations.

Mike’s Texaco is located in the Coolidge Corner section of Brookline, at the intersection of Longwood Avenue and Sewall Avenue. It is situated across Sewall Avenue from the premises known as 21 Longwood Avenue. The premises at 21 Longwood Avenue consist of 12,300 square feet of land, on which there is located a two-stoiy brick building. The building occupies approximately one-third to one-half of the property. The remainder consists of a parking area having the capacity to hold 20-22 automobiles. In this regard, the property is unique to Coolidge Corner, where parking is otherwise limited.

In late 1976, the plaintiff became interested in acquiring the property at 21 Longwood as an investment. To that end, he and his then law partner, one Harry Miller, formed a nominee trust having the plaintiff and Miller as trustees and beneficiaries. There were two additional beneficiaries. Since that time, through transactions not fully developed during the trial, the plaintiff has become the sole trustee and his current wife the sole beneficiary. The trust is denominated as the “21 Longwood Realty Trust.”

The plaintiff and his associates obtained from the then owner an agreement to sell the property at 21 Longwood Avenue in December 1986. In order that the purchasers might avail themselves of certain tax advantages which would otherwise lapse at the end of 1986, the sale itself was hastily effectuated. The closing occurred on December 31, 1986. The plaintiff and his associates paid $100,000 up front. The seller, an entity known as the Chicos Family Trust, gave the plaintiff and his associates temporary financing. It was agreed that if the purchasers could not obtain bank financing within six months, the sale would be rescinded and the parties restored to status quo. The total sale price was $1.4 million.

[440]*440The plaintiff promptly applied to the BayBank for a loan. As a condition of granting the loan, the bank required that the plaintiff subject the property to a “21E evaluation," an evaluation to determine the likelihood that hazardous waste was present on the property. To that end, the plaintiff retained I.E.S., Inc. to perform the evaluation. After undertaking an historical review of the subject property and its neighboring properties, but without undertaking any test borings on the subject properly, I.E.S. concluded in May of 1987, that the property was likely free of contamination.

Because the conclusion of I.E.S. was rendered without the benefit of test borings, it was not acceptable to BayBank. Accordingly, the plaintiff directed I.E.S. to supplement its evaluation with results from the necessary borings. I.E.S. complied, and on June 22,1987, it prepared a report of its work (Ex. #2). The material portions of the report are as follows:

The results of this project indicate that there was a release of what appears to be gasoline from a source off the site in question. Most probably the service station across the street. This release occurred some time in the past... [T]he petroleum in the soil is at least five years old and has degenerated appreciably due to natural dissipation in the subsurface soils and will continue to do so.
. . . Findings detailed in this report are that I.E.S considers the site in question to exhibit a minor release, from a remote source, of petroleum products, however, this does not pose an imminent health threat nor does it exceed state protocols for remedial or monitoring action.

Despite a date stamp on the report suggesting otherwise, the plaintiff received the report, or at least became aware of its contents, sometime in late June 1987.

The Court finds that the I.E.S. report of June 22, 1987 did not apprise the plaintiff that the property at 21 Longwood had suffered any actionable damage as a result of contamination from Mike’s Texaco, nor did it reasonably put him on notice to investigate further the possibility of such damage. What was portrayed in the I.E.S. report was a release of gasoline that had occurred in the distant past, the effects of which were minimal and decreasing over time. Moreover, the report gave no indication that the evaluation process had been incomplete or that further evaluation might lead to a different conclusion.1

Equally as important, it has not been established by a preponderance of the evidence that the release detected by I.E.S. in 1987 is the same release which is the basis of this action. Most notable in that regard is the fact that, in 1987, no levels of benzine and only trace levels of toluene were detected in soil samples, thus indicating “degraded petroleum products." In later testing which became the basis for this action, high levels of those constituents were detected. The inference is warranted that the later testing detected a release distinct from, and of more recent origin than, that detected in 1987.

Having itself received the June 22, 1987 I.E.S. report, BayBank closed on the plaintiffs loan by the end of June 1987. The amount of the loan was $1 million and was secured by a first mortgage. Interest on the loan was at a rate of 10%. The seller extended an additional loan in the amount of $300,000, which amount was secured by a second mortgage. As already noted, $100,000 had been paid up front at the time that the sale of the property had closed.

In December 1986, when the 21 Longwood Realty Trust had taken title to the property, there were two tenants who, between them, occupied the entire building. The Chickering Insurance Company occupied the entire first floor. The Baystate Bank occupied the entire second floor. The building remained fully occupied and under the plaintiffs management for a year and a half, at which time the lease of the Baystate Bank expired. At approximately the same time, the Chickering Insurance Company also indicated a desire to move out.

The plaintiff found it difficult to find tenants to fill the vacancies which had been created and were about to be created. Chickering eventually moved out, and, from that point on, only two or three minor tenants were secured, who rented small portions of the building.

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Bluebook (online)
2 Mass. L. Rptr. 439, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rothenberg-v-longwood-auto-specialists-inc-masssuperct-1994.