STATE DEPT. OF ECOLOGY v. Tiger Oil Corp.

271 P.3d 331, 166 Wash. App. 720
CourtCourt of Appeals of Washington
DecidedFebruary 28, 2012
Docket40563-6-II
StatusPublished
Cited by20 cases

This text of 271 P.3d 331 (STATE DEPT. OF ECOLOGY v. Tiger Oil Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
STATE DEPT. OF ECOLOGY v. Tiger Oil Corp., 271 P.3d 331, 166 Wash. App. 720 (Wash. Ct. App. 2012).

Opinion

Hunt, J.

¶1 Tiger Oil Corporation (New Tiger) 1 challenges several superior court orders arising from (1) Model Toxics Control Act (MTCA) 2 litigation and a consent decree entered after Washington’s Department of Ecology sued New Tiger for gasoline spills in Yakima during the late 1970s and early 1980s, and (2) New Tiger’s incomplete remediation efforts under the consent decree. At the outset we note that New Tiger entered into a settlement agreement and consent decree that resolved all claims and defenses between it and Ecology; therefore, we do not address New Tiger’s challenge to the 2004 summary judg *727 ment orders dismissing New Tiger’s affirmative defenses to Ecology’s MTCA lawsuit. 3 Similarly, because New Tiger did not timely appeal it below, we do not address the June 9, 2009 order denying New Tiger’s request for superior court review of Ecology’s final management review decision. We do, however, address New Tiger’s timely appeal of the superior court’s April 2, 2010 order affirming Ecology’s final management review decision and the April 16, 2010 amended contempt order.

¶2 We affirm the superior court’s April 2, 2010 orders striking the exhibit from New Tiger’s counsel’s declaration and affirming Ecology’s final management review decision. We affirm most of the superior court’s April 16, 2010 amended contempt order, except the part finding New Tiger in contempt for failure to operate the Interim Soil Vapor Extraction (SVE) System, which we reverse.

FACTS

I. Tiger Parcel Gasoline Contamination

A. Old Tiger; Gasoline Spills; 1982 Ecology Enforcement Order; Partial Remediation

¶3 In the late 1970s, Tiger Oil Company (Old Tiger) purchased a Yakima tract (Tiger Parcel) to operate a gasoline service station and convenience store. Located on this parcel were four underground storage tanks, each capable of holding several thousand gallons of gasoline. Old Tiger had installed new pipes and fittings on these underground tanks. In 1981, high levels of gasoline vapors in and around a nearby storm drain line caused an explosion that injured City of Yakima workers.

¶4 In September 1982, Old Tiger excavated soil from Tiger Parcel’s southeast corner and discovered gasoline *728 contamination. Testing revealed a leak in the new piping that Old Tiger had installed a few years earlier. In response, Ecology ordered Old Tiger “to recover floating [gasoline] product in groundwater at the Site[ 4 ] and to perform other investigative and remedial activities.” Clerk’s Papers (CP) at 19. Old Tiger contracted with an environmental remediation company, which installed recovery wells and began recovery operations. A few months later, Old Tiger discovered a second gasoline leak of an estimated 2,028 gallons in “the riser leading to one of the [gasoline] pumps” on the Tiger Parcel. CP at 373. Old Tiger repaired this leak.

¶5 In early 1983, Old Tiger’s liability insurer, Federated Service Insurance Company, 4 5 assumed control of the remediation activities. An independent claims adjuster estimated that the combined first and second Tiger Parcel spills had released 20,000 gallons of gasoline. In January 1984, a vehicle collided with a gasoline dispenser on the Tiger Parcel, spilling an additional 50 gallons of gasoline. By March 1984, remediation activities had recovered approximately 16,000 gallons of the spilled gasoline. In September 1985, an environmental remediation company advised Federated Service that there remained “considerable contamination” in and around the Tiger Parcel and that “remediation [activities] should continue.” CP at 374,1613. In June 1986 and December 1987, the environmental remediation company detected “free product” 6 at “the Site.” CP at 4539.

¶6 In 1987, Old Tiger began exploring the possibility of selling its assets, including the Tiger Parcel and the gas station and service store located on it. Seattle First Na *729 tional Bank (Seafirst), Old Tiger’s financial adviser, sent to Charles David Conley, President of Goodman Oil Company, a letter about a potential sale and a confidential memorandum describing the history and nature of Old Tiger’s business, its assets, and its financial information. This memorandum also stated that leaking gasoline and contamination “w[ere] discovered” in the past but that Old Tiger did not “expect any further legal action” and that “[a] 11 suits [had] been settled satisfactorily.” 7 CP at 941.

¶7 When Conley told Seafirst “that [Old Tiger] had had a problem with underground storage tanks,” 8 Seafirst assured Conley that “all problems [relating to the three gasoline spills] had been taken care of.” CP at 881. Conley understood these assurances to mean that “[law]suits, anything involved in [the gasoline spills] had all been taken care of.” CP at 883. Conley also asked Goodman’s general counsel to “make sure ... that everything was handled”; but Goodman’s counsel neither hired an independent environmental company to evaluate Tiger Parcel nor otherwise investigated the Site’s environmental condition. CP at 887. Neither Conley nor anyone else at Goodman was aware of Ecology’s 1982 enforcement order.

B. New Tiger; Contamination; 1990 Ecology Enforcement Order

¶8 New Tiger was incorporated on August 13,1987, and Conley soon became New Tiger’s president and sole shareholder. CP at 1296. On October 1, New Tiger purchased Old Tiger’s assets, including the Tiger Parcel, for $1,100,000. In the purchase and sale agreement, Old Tiger warranted “that there [was] no suit, action, legal, administrative or other proceeding pending or threatened against or affecting” Old Tiger. CP at 2428. The agreement also contained *730 indemnity clauses, in which Old Tiger and its owners guaranteed to “defend and hold [New Tiger] harmless of any and all claims . . . based solely on any alleged occurrence, contract, undertaking, or conduct occurring prior to the time of closing.” CP at 2432.

¶9 In May and June 1988, Mercy Development Company LLC 9 acquired parcels surrounding Tiger Parcel and developed a Safeway shopping center and parking lot on the southern parcels. In September 1988, Old Tiger dissolved. Also that fall, the company that had installed the later-leaking pipes on the Tiger Parcel underground storage tanks for Old Tiger, after Old Tiger bought the parcel in 1978, asked a well driller to close any remaining monitoring and recovery wells at and around the Tiger Parcel because “no [remediation] activity had occurred ... for a long time.” CP at 95.

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Bluebook (online)
271 P.3d 331, 166 Wash. App. 720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-dept-of-ecology-v-tiger-oil-corp-washctapp-2012.