Legal Question in Real Estate Law in New Jersey

Environmental tenant issues

I am a tenant in an industrial building in NJ. My lease says that I am responsible for environmental spills on the property. (Standard commercial lease). A heating oil tank that was installed by the landlord leaked. We are still not sure how it happened. About 150 gallons of heating oil were spilled. The clean up that was approved by the DEP cost about $50,000.00, The landlord sent me the bill for the job. I refused to pay it. He is now commencing with eviction proceedings. My insurance does not cover environmental spills. I feel that I would be responsible for the spill if it were drums or something else that I brought on his property. However I think it is up to the landlord to provide properly working building components such as a heating oil tank. Should I fight it or pay it. The $50,000 will put my business in Jepordy.


Asked on 8/04/00, 11:24 pm

2 Answers from Attorneys
Bruce Gudin Ehrlich, Petriello, Gudin & Plaza Esqs.

Re: Environmental tenant issues

You should definitely defend the case! Our firm will gladly represent you. Visit our web site for our credentials www.LEP-Lawyers.com and call me for a no-cost consultation. Fax me your lease first to review.

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Answered on 9/14/00, 1:52 am

Re: Environmental tenant issues

I can only speak in generalities, as I do not have the lease, and you really need to take the lease to an attorney!!!

Is the lease silent as to ALL environmental spills, OR spills caused by the tenant, or from tenant's equipment, stock, etc.??? If the lease silent, I would argue that the lease is ambiguous, and by law must be interpereted with all deference given to the tenant's interperatation of the lease. Clearly you interperated this clause to mean you are responsible for spills caused by you or your 'stuff'.

DO NOT PAY IT. Tell the landlord to pound sand. Your insurance company may also be liable to pay for your defense in the event the landlord files suit over this matter. Make your insurance company put in writing that they do NOT owe you a defense and do not cover environmental spills. After litigating this matter you may then be able to get your attorneys fees back from your insurance company. They LOVE telling insureds they don't cover something (even though they may be liable) but fail to mention they still owe you a defense.

Keep in mind, this may also be something other than an environmental spill. It could be an act of God, and part or all of the costs may still be covered.

Good luck to you.

Kevin J. Begley

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Answered on 9/13/00, 8:02 pm


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