Transwestern Pipeline Co. v. Monsanto Co.
Opinion
Opinion
Johnson, J.
Plaintiff, whose business is the interstate transportation of natural gas, contaminated the Southern California Gas Company’s pipeline with gas containing polychlorinated biphenyls (PCB’s). After settling the gas company’s damage claim, plaintiff sought equitable indemnity from the PCB manufacturer on several theories including strict liability for design defect and negligent failure to warn of the environmental hazards of PCB’s. A jury found the manufacturer 37.5 percent responsible for the PCB contamination and awarded plaintiff damages accordingly.
We conclude the PCB manufacturer cannot avoid liability based on the conflicting terms of purchase and invoice forms exchanged by the parties and that plaintiff is not guilty of laches. On the merits, we find contamination of the gas company’s pipeline system constituted property damage, not economic loss, and therefore the PCB manufacturer is liable to plaintiff for equitable indemnity based on the jury’s finding of comparative negligence. We also uphold the award of future damages based on plaintiff’s continuing legal obligation to contribute to the gas company’s remediation costs.