17 N.E.3d 357
Ind. Ct. App.2014Background
- VEI owned the Warsaw property; Farm Tech leased it and operated there with two 250-gallon USTs for heating fuel.
- Between 1988 and 1991, VanMeter, Sr. hired Moore to move water lines away from a contaminated well near the USTs after noting falling fuel oil levels and petroleum-contaminated water.
- Moore observed that leakage from the USTs had contaminated the surrounding soil, suggesting a leak near the USTs.
- VanMeter, Sr. died in 1994; his stock transferred to his estate; VanMeter, Jr. later signed VEI’s environmental disclosure stating no reportable releases and VEI’s records omitted leakage.
- VEI sold the property in 1995; in 2009, Nicholases formed JDN and discovered petroleum contamination near the southeast corner of the property, incurring remediation costs.
- JDN sued VEI for breach of contract, fraudulent inducement, and an Environmental Legal Action (ELA) claim; the trial court granted VEI summary judgment on the ELA claim, which was reversed and remanded on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether VEI caused or contributed to the contamination | JDN contends VEI, via landlord knowledge, contributed or caused the pollution. | VEI argues no knowledge or involvement; no evidence of leakage during VEI ownership; rental relation limits liability. | Genuine issues of material fact exist; reversal and remand. |
Key Cases Cited
- Reed v. Reid, 980 N.E.2d 277 (Ind. 2012) (emphasizes burden on defendant to show origin from another source on ELA claim)
- Neal v. Cure, 937 N.E.2d 1227 (Ind. Ct. App. 2010) (landlords not liable where no knowledge of release)
- Cooper Indus., LLC v. City of South Bend, 899 N.E.2d 1274 (Ind. 2009) (ELA aims to shift remediation cost to responsible parties)
- Peniel Group, Inc. v. Bannon, 973 N.E.2d 575 (Ind. Ct. App. 2012) (discusses potential landlord-tenant liability under ELA)