Wellesley Hills Realty Trust v. Mobil Oil Corp.

747 F. Supp. 93, 1990 U.S. Dist. LEXIS 11699, 1990 WL 129144
CourtDistrict Court, D. Massachusetts
DecidedSeptember 4, 1990
DocketCiv. A. 90-10840
StatusPublished
Cited by51 cases

This text of 747 F. Supp. 93 (Wellesley Hills Realty Trust v. Mobil Oil Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wellesley Hills Realty Trust v. Mobil Oil Corp., 747 F. Supp. 93, 1990 U.S. Dist. LEXIS 11699, 1990 WL 129144 (D. Mass. 1990).

Opinion

MEMORANDUM

CAFFREY, Senior District Judge.

This action involves a dispute over liability for the contamination of real property located in Wellesley, Massachusetts (the “site”) now owned by the plaintiff, Welles-ley Hills Realty Trust (“WHRT”), and formerly owned by the defendant, Mobil Oil Corporation (“Mobil”). The plaintiff has alleged that Mobil contaminated the property by releasing oil and hazardous materials during its ownership from August 21, 1926 to January 29, 1987 when it operated a gasoline service station on the property. In its complaint, WHRT has asserted eight claims allegedly arising from this contamination. Mobil has moved to dismiss each of these claims on various grounds, and this action is now before the Court on the Mobil’s motion to dismiss.

The essential facts alleged in the complaint are as follows. Mobil owned the site and operated a gas station on the site from 1926 to 1987. During this period, Mobil stored oil and other materials, classified as hazardous, which were released onto the property. On January 30, 1987, Mobil sold the property to Harold Alexander. In April, 1987, Alexander entered into a Purchase and Sale Agreement relating to the site with William Roberts, who later became WHRT’s trustee. Pursuant to the Purchase and Sale Agreement, Alexander requested an environmental assessment of the site. The results, received prior to the closing, revealed severe contamination of the site by “benzene, toluene, ethylbenzene and xylene, all of which are components of gasoline.” Despite these results, WHRT proceeded with the closing on June 7, 1988.

In its eight-count complaint, WHRT has alleged that Mobil is liable for the contamination of the site under various theories of *95 recovery. Count I alleges a claim under Mass.G.L. ch. 21E, the Massachusetts Oil and Hazardous Material Release Prevention and Response Act. Count II asserts a claim for nuisance. Count III states a claim for trespass. Counts IV, V, and VI assert claims for negligence, negligent supervision, and strict liability. Count VII seeks a declaratory judgment that the defendant is legally responsible for the contamination and is liable for the costs of cleanup. Count VIII alleges a claim under G.L. ch. 93A (“chapter 93A”) for unfair and deceptive trade practices allegedly engaged in by the defendant.

Pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure, Mobil has moved to dismiss all of these claims on the ground that the alleged facts fail to state any claim upon which relief can be granted. Fed.R. Civ.P. 12(b)(6). The standard for evaluating the sufficiency of a complaint on a 12(b)(6) motion is whether the plaintiff can prove any set of facts that would entitle it to relief on its claim. Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 101-102, 2 L.Ed.2d 80 (1957); Nader v. Citron, 372 Mass. 96, 97-98, 360 N.E.2d 870 (1977). A claim should not be dismissed “unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Conley, 355 U.S. at 45-46, 78 S.Ct. at 101-102. Moreover, for purposes of a motion to dismiss, the allegations of the complaint and any inferences that may be drawn from them are to be accepted as true. Nader, 372 Mass. at 98, 360 N.E.2d 870.

I.

In Count I of the complaint, WHRT has asserted a claim under the Massachusetts Oil and Hazardous Material Release Prevention and Response Act (“Chapter 21E”). Mass.G.L. ch. 21E. WHRT claims that Mobil “caused or is legally responsible for” releases of oil and hazardous materials at the site and as such is liable to WHRT for the damage to the property, including assessment costs, containment and removal costs, diminution of the value of the site, and restriction on its ability to obtain financing and develop the site.

Chapter 21E is the Massachusetts equivalent to the federal superfund statute, the Comprehensive Environmental Response, Compensation, and Liability Act (“CERC-LA”). Chapter 21E was enacted “to clarify and improve the commonwealth’s capability for responding to releases of oil and hazardous material and to recover response costs from persons responsible for releases for which it has incurred such costs.” Nassr v. Commonwealth, 394 Mass. 767, 773-74, 477 N.E.2d 987 (1985) (quoting St. 1983, c. 7, emergency preamble). Chapter 21E authorizes the Department of Environmental Protection to take such response actions, including assessment, containment and removal, as it reasonably deems necessary whenever it has reason to believe that oil or hazardous waste has been released. Mass.G.L. ch. 21E, § 4. Chapter 21E also creates a private right of action: “Any person who undertakes assessment, containment, or removal action regarding the release or threat of release of oil or hazardous material shall be entitled to reimbursement from any other person liable for such release or threat of release for the reasonable costs of such assessment, containment and removal.” G.L. ch. 21E, § 4.

Section 5(a) of Chapter 21E identifies five categories of persons who are liable for response costs under Chapter 21E. Section 5(a) provides in relevant part:

Persons liable
(a) Except as otherwise provided in this section, (1) the owner or operator of a vessel or a site from or at which there is or has been a release or threat of release of oil or hazardous material; (2) any person who at the time of storage or disposal of any hazardous material owned or operated any site at or upon which such hazardous material was stored or disposed of and from which there is or has been a release or threat of release of hazardous material; ... (5) any person who otherwise caused or is legally responsible for a release or threat of release of oil or hazardous material from a vessel or site, shall be liable, without regard to fault, (i) to the commonwealth *96 for all costs of assessment, containment, and removal incurred pursuant to section four and section eight relative to such release or threat of release, ... (iii) to any person for damage to his real or personal property incurred or suffered as a result of such release or threat of release.

Section 5(a) makes a notable distinction between liability for releases of hazardous material and liability for releases of oil. Subsection (1) makes present owners of property where there has been a release of hazardous material or oil liable, regardless of whether the release occurred during their ownership or not. Thus, present owners of property contaminated by either hazardous material or oil are liable solely by reason of their ownership.

Subsection (2), however, applies only to contamination by hazardous material and makes past owners of property contaminated by hazardous material liable if the release occurred during their period of ownership.

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Bluebook (online)
747 F. Supp. 93, 1990 U.S. Dist. LEXIS 11699, 1990 WL 129144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wellesley-hills-realty-trust-v-mobil-oil-corp-mad-1990.