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Ground water contamination on commercial property

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Brian H.

Guest
We purchased a motel in Montana approximatly two years ago. About 4 1/2 months after purchasing we were told by a guest that there used to be a gas station on this property back in the 50's. The state is in the process of widening the road in front of the motel. In the process they sampled the ground for contamination. The results showed small amounts of old gas contamination. They also went through the parking lot looking for underground tanks. They found one and we promplty had it removed. There was no evidence of any leaking from it.
We spoke to the people we purchased the property from and they claimed they knew nothing about any gas station being here. We then spoke to the people that they bought the property from and they readilly admitted knowing there was a gas station here. They even knew the name of the people who owned the staion.
The people we purchased from signed a statment that was required by our bank. It said there had never been any gas station on the property or underground tanks. This form didn't say anything about being to the best of anyones knowledge.
Their head maid knew there was a gas station here as well as what seems like a good portion of the town, and the fact that one of our customers through casual conversation told us there was one here leeds me to honestly believe that our sellers knew there was a station here.
My liability is $17,500.00 for cleanup costs, after that the states petro board will pay 100%. In your opinion, how strong is my case against the previous owners? I've talked to two attorneys just briefly on the phone about this. They both seemed to have different opinions on how strong my case is. One suggested we talk to the previous owners and suggest that we split the cost of the deductible. But, it seems to me that since we have a statement with their signatures on it, stating that there had never been a gas station here, we shouldn't settle for split costs, we should expect them to pay for all of our costs. Your reply would be greatly appreciated. Thanks
 


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Tracey

Guest
Did the previous owners give you a warranty deed or a quitclaim deed? If they warranted that no gas stations were on the property, you can go after them for breach of warranty.

Check out the CERCLA (Superfund) laws. It's a federal environmental cleanup law passed by Carter. 5 years ago, CERCLA said the any person who: owned property, built on property, or disposed of waste on property was liable for the costs of cleanup. IF CERCLA APPLIES, you could sue all past owners back to the ones who built the station for reimbursement. I can't remember if if applies to private causes of action, though.

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This is not legal advice and you are not my client.
 

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