Long Beach Unified School District v. Santa Catalina Island Company et al

 Case Background

The Contamination Cleanup lawsuit was filed on February 14, 2019  by Plaintiff  Long Beach Unified School District in the California Central District Court, Los Angeles division. (Case number: 2:19-cv-01139) and was presided over by the Judge Maame Ewusi-Mensah Frimpong

Cause

Long Beach Unified School District filed a lawsuit against Santa Catalina Island Company (SCICo) and the City of Avalon regarding extensive environmental contamination at the Avalon School Campus on Catalina Island. SCICo owned and operated the entire site from the late 1800s to the 1920s, when it began selling parcels. The City purchased land west of the school campus in 1920. A manufactured gas plant (MGP) operated on the site from 1920 to 1931, initially by the City and later by SCICo. The MGP included large gas storage tanks and carbon furnaces, generating waste containing polycyclic aromatic hydrocarbons (PAHs) and other contaminants. An electric generating plant with diesel-powered generators also operated on the site from 1920 to 1947, likely contributing hydrocarbon contamination.

SCICo graded the main campus area with fill material containing burn dump waste before constructing the high school building in 1924. The school district later built additional structures on this contaminated fill. SCICo also operated a golf course on part of the property, allegedly using arsenic-containing rodenticides. The school district discovered the contamination in 2001 during a modernization project involving trenching. Soil testing revealed elevated levels of dioxins, lead, arsenic, and PAHs. The district began investigating and conducting removal actions to protect students and staff, entering into a Voluntary Cleanup Agreement with the California Department of Toxic Substances Control (DTSC) in 2001 and 2007.

In 2012, DTSC issued an Imminent and Substantial Endangerment Determination Order and Remedial Action Order naming SCICo, the City, and the school district as responsible parties. The order divided the site into two operable units (OUs) for remediation purposes.

Injuries

The contamination at the Avalon School Campus posed significant health risks to over 500 K-12 students, faculty, staff, and visitors. Exposure to hazardous substances like lead, arsenic, dioxins, and PAHs can cause serious acute and chronic health effects, particularly in children whose developing bodies are more susceptible to environmental toxins. Lead exposure can cause developmental delays, learning difficulties, and behavioral problems in children. Arsenic is a known carcinogen and can cause skin lesions, cardiovascular disease, and diabetes. Dioxins are highly toxic and can cause reproductive and developmental problems, damage the immune system, and cause cancer. PAHs are also carcinogenic and can affect fetal development.

The contamination interfered with the school district’s use and enjoyment of the property, preventing planned renovations and improvements necessary for providing a safe and modern educational environment. The presence of hazardous substances in soil and potentially in indoor air posed ongoing exposure risks and required implementation of protective measures.

Damages

The school district incurred over $12 million in costs to assess and clean up the contamination since 2001. These expenses included:

  • Removing 2,126 tons of contaminated soil in 2005
  • Removing 40 cubic yards of contaminated soil from the western ball field slope in 2009
  • Removing 130 cubic yards of soil from the locker room courtyard area in 2010
  • Removing 210 tons of PAH-impacted soil from the southwest corner of the ball field slope in 2014
  • Conducting numerous site investigations, risk assessments, and characterization studies
  • Implementing interim protective measures such as temporary caps
  • Developing cleanup plans and work plans
  • Ongoing monitoring and maintenance

The school district sought damages exceeding $12 million plus interest, a permanent injunction requiring the defendants to abate the nuisance, declaratory judgment on liability for future costs, attorney’s fees, and costs of the suit.

Key Arguments and Proceedings

Legal representation

  • Plaintiff(s):Long Beach Unified School District
    • Counsel for Plaintiff: Gary J. Smith| Aminah Famili | Christopher D. Strunk | David Harvey McCray | John Charles Cruden | Joshua H. Van Eaton | Michael F. Vitris | William J. Enoch | Sage R. Knauft | Scott Jordan Sachs

 

  • Defendant(s):Santa Catalina Island Company | City of Avalon
    • Counsel for Defendants: Alexander P. Swanson| Gregg William Kettles | John H. Holloway | Gregory D. Trimarche | Jonathan Robert Medina | Patrick Ward Dennis | David F. Wood | Patrick Donald Skahan | Joshua Nicholas Levine | Paul D. Rasmussen | Stratton Peter Constantinides

 Claims

The complaint alleged several causes of action:

  1. Cost Recovery under CERCLA (42 U.S.C. § 9607): The school district sought to hold SCICo and the City jointly and severally liable for all past and future necessary response costs incurred in addressing the hazardous substance releases at the site.
  2. Declaratory Relief under CERCLA (42 U.S.C. § 9613): The district requested a declaratory judgment establishing the defendants’ liability for future response costs.
  3. Declaratory Relief under 28 U.S.C. § 2201 and § 2202: The district sought a judicial determination of the parties’ rights and obligations regarding the contamination and associated costs.
  4. Equitable Indemnity and Contribution: The school district claimed entitlement to indemnification and contribution from the defendants for all damages, response costs, and other liabilities related to the contamination.
  5. Continuing Public and Private Nuisance: The district alleged that the contamination constituted an ongoing nuisance, interfering with the use and enjoyment of the property and posing risks to public health.

Defense

The City of Avalon admitted basic facts about its identity, location, and details regarding the site, including the presence of contaminants and gas holders. However, it claimed insufficient knowledge to address most allegations, particularly those related to historical operations, contamination specifics, and cleanup activities. The City also argued that many allegations were legal conclusions requiring no response.

SCICO acknowledged previous ownership of parts of the Avalon School Campus and their transfer to the school district. It confirmed being named as a responsible party in the 2012 Department of Toxic Substances Control (DTSC) order. However, SCICO denied responsibility for extensive contamination and refused to reimburse the district for cleanup costs incurred before the 2012 order or outside its scope. The company challenged the necessity of the district’s proposed extensive soil excavation, claiming DTSC agreed it was unnecessary for safety. SCICO also raised potential statute of limitations defenses.

Jury Verdict

In Contamination Cleanup lawsuit, on April 8, 2024 the jury unanimously found in favor of Defendant Santa Catalina Island Company and City of Avalon on Plaintiff’s private nuisance claim, determining that Plaintiff had not proven all essential elements of the claim.

Court Documents:

Available Upon Request