Exxon Mobil Corp. v. New West Petroleum L.P.

MEMORANDUM OF DECISION

This action involves disputes over which party is contractually responsible under a Purchase and Sale Agreement (“Agreement”) between plaintiff Exxon Mobil Corporation (“Exxon”) and defendants New West Petroleum, New West Petroleum L.P., and New West Petroleum L.L.C. (collectively, “New West”) for paying the costs of cleaning up petroleum contamination at 3430 Northgate Boulevard in Sacramento, California (“Property”).

On October 3, 2007, a month-long jury trial concluded in mistrial when the jury was unable to reach a verdict. The parties subsequently waived their right to a second jury trial and stipulated to adjudication by the court based upon the existing record and post-trial briefing. The court has reviewed the parties post-trial briefing and heard two days of oral arguments. This memorandum constitutes the court’s findings of fact and conclusions of law pursuant to Federal Rule of Civil Procedure 52(a).

I. Background

Exxon, the holder of a ground lease in the Property since December 1988, built and operated a retail gasoline service station on the Property beginning in 1991 that sold unleaded gasoline containing methyl tertiary butyl ether…