Estuary Owners Association. v. Shell Oil Co.

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The land underlying the 100-unit condominium project was owned and used by Shell as a fuel distribution terminal from 1925-1980, then owned by others. Petroleum products were delivered to the property and stored in aboveground and underground storage tanks. The Estuary Owners Association (EOA) and individual unit owners sued, alleging contamination of the soil and groundwater at the site and improper construction of the condominiums. After the plaintiffs settled with developers and other defendants, the court granted Shell summary judgment, reasoning that the causes of action for negligence and nuisance were barred by a 10-year statute of repose; the negligence claims also were barred by a three-year statute of limitations; and Shell did not owe a duty of care to the plaintiffs. The court of appeal affirmed as to negligence and reversed as to nuisance. The trial court erred in finding the statute of repose applicable but was correct with respect to the statute of limitations. Any claim of negligence causing damage to real property accrued in favor of prior landowners and cannot be pursued by plaintiffs now. Rejecting Shell’s assertion that the plaintiffs were only claiming construction defects as the basis of nuisance, the court noted a possible argument that Shell‘s negligent mishandling of petroleum products and subsequent failure to remediate created a continuing nuisance. View "Estuary Owners Association. v. Shell Oil Co." on Justia Law