Meghrig

Plaintiff and appellant KFC Western, Inc. (KFC) appeals a judgment of dismissal following the sustaining of a demurrer without leave to amend interposed by defendants and respondents Alan Meghrig and Margaret Meghrig (the Meghrigs) to KFC’s first amended complaint.

The issues presented include: whether KFC’s cause of action under Health and Safety Code section 25363 against the previous owners of its property, which had been the site of a gasoline station, to recover the costs of cleaning up contaminated soil is barred by the petroleum exclusion of section 25317; , and whether KFC may pursue common law claims against the previous owners for continuing nuisance and continuing trespass.

For the reasons discussed, we conclude the cost recovery action under section 25363 is barred because section 25317 excludes refined petroleum. However, with respect to the nuisance and trespass claims, KFC is entitled to amend. The judgment therefore is reversed in part and remanded and otherwise is affirmed.

Factual and Procedural Background

In September 1975, for $152,000 the Meghrigs sold certain real property on Western Avenue in Los Angeles to KFC which operated a Kentucky Fried…