Trial Date Set in Suit Over Toxic Cleanup

A federal judge has given the go-ahead for a city Redevelopment Agency lawsuit seeking reimbursement of more than $855,000 the agency spent to remove toxic waste from land it purchased from a construction firm.

In Los Angeles last week, U.S. District Court Judge Manuel Real denied a motion by the construction firm, Clifford C. Bong & Co., to dismiss the agency’s lawsuit. A June 6 trial date was set.

The Arcadia Redevelopment Agency sued the firm in April, 1988, four months after it discovered that about 1.6 acres, or 80% of the lot it purchased, was contaminated with lead and heavy hydrocarbons, said Ben Kaufman, an attorney for the agency.

The agency paid $1.8 million for the land, at the corner of 2nd Avenue and Santa Clara Street, through eminent domain in 1986 in preparation for a hotel project, Kaufman said.

Marriott Being Built

The land was empty until the end of World War II, when the construction business was opened there, Kaufman said. A 120-suite Residence Inn by Marriott is being built on the site, with 30 units already completed and open to guests.

At a court hearing Wednesday, Richard Montevideo, an attorney for Bong, argued that the purchase agreement limited the firm’s liability to $75,000 if contamination was found.

But Kaufman said the liability limit applied only to possible leaks from five underground gasoline and diesel fuel tanks.

The Redevelopment Agency knew about the fuel tanks when it bought the land but did not discover the lead contamination until January, 1988, when it conducted a full environmental inspection before turning the property over to the hotel developer, Kaufman said.

Officials do not know what caused the lead contamination but have concluded that the underground tanks were not responsible, Kaufman said.

Superfund Law Used

The Redevelopment Agency filed suit under the federal Superfund law, which permits those who pay for the removal of toxic waste to recover clean-up expenses from those responsible for the contamination. An agency attempt to sue under another federal law was dismissed by the judge.

Kaufman hailed the judge’s decision Wednesday as a victory for the agency. “We’re doing exactly what the Superfund law was designed to do,” he said. “We’re protecting public health by cleaning up hazardous wastes and then making sure that the responsible parties pay for it.”

Andrea Calem, another attorney for Bong, said she remains optimistic about winning the case for the construction firm.

“We didn’t think it’s a bad sign for the case at all,” she said of the judge’s ruling. “We are not afraid for the case to go to a jury.”