Legal Question in Real Estate Law in California
liability for hazardous waste cleanup
I purchased SF building from bank in 1990, sold it in 2003,now the buyer is demanding $300K to clean up lead in soil found when excavating for new building. My realtors told me this was my resposibility ''no matter what'' so the sales contract has a clause specifying that I would be responsible for site remediation, but the buyers phase I and II reports indicated ''no problems'' and realtors said I should go ahead and sign so I did.Realtors also said previous owners would have to share in any cleanup, but my purchase contract from 1990 seems to say I waive any rights against seller for hazardous wastes that may ever be found. I need help! Do I have any recourse against anyone else? Apparently the lead is in the soil as the result of debris deposited in this area afteer the 1906 quake, there does not appear to be any identifyable source for the hazardous waste except the city of SF. The buyers Phase I &II reports did not find this or make note of the fact that 2 nearby excavation sites had similar problems, this was only found out recently. The buyer has already removed most of the soil, even prior to notifying me, and isa now presenting me with the bills. hanks for your help.
3 Answers from Attorneys
Re: liability for hazardous waste cleanup
If this is nonresidential real property, there is an applicable code which states that any owner of nonresidential real property who knows, or has reasonable cause to believe, that any release of hazardous substance has come to be loccaged on or beneath that real property shall, prior o the sale, lease or rental...by that owner, give written notice of that condition to the buyer...of the property. So the question appears to be whether you had reason to know of the lead. Also, a review of your sales contract, inspection reports and any other relevant documents would assist in better answering your question. You may have recourse against the bank who sold you the property.
Re: liability for hazardous waste cleanup
You really need to take all of your documents to an attorney in your area for review. You may have recourse against all of the previous owners of the property, including the City, as well as the person who sold the property to you, and the brokers/agents involved your purchase and/or your sale of the property.
Re: liability for hazardous waste cleanup
There's more to it than the previous answers hint. Both Federal and California statutes pin responsibility for site contamination on pretty much everyone in the chain of title.
Because your potential liability is so great, let me suggest that you give yourself a brief education on the subject; this will allow you to have a more meaningful discussion with your lawyer, when you retain one (or more).
I would start by going to a law library in San Francisco - Golden Gate University has one, as would Hastings, and there are others including a "public" law library, but I don't know where it is. Ask the librarian to let you read Chapter 23 of Miller & Starr's treatise on California real-property law -- it covers hazardous substances. Give particular attention to sections 23:29 - 23:41 re the Comprehensive Environmental Response, Compensation and Liability Act; also 23:42-23:43, the California version of CERCLA.
You may have recourse against the broker(s) or the environmental inspectors, and you may have an innocent-buyer defense, but I wouldn't count on any of these.
Please feel free to contact me for answers to any specific further questions about environmental responsibility law and defenses.
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