Weinstock Porter Dev. v. Teixeira Farms CA2/6

FACTS AND PROCEDURAL HISTORY

WP purchased vacant land in Santa Maria from TFI with the intent of developing it into townhomes. WP knew that the soil was contaminated from Unocal’s past attempts to produce oil, but WP did not know the full nature and extent of the damage. After the sale, WP discovered additional contamination. It sought compensation from TFI, which agreed to pay $200,000 for remediation and environmental insurance. In exchange, WP gave “a full and complete release from any and all liability, obligation and cost” to TFI “and its successors, assigns, representatives, stockholders, directors, officers, principals, employees, agents, parent and subsidiary organizations, and affiliates, and all other persons and associations, known or unknown” from “all rights, claims, demands, actions, and judgments which [WP] ever had, or now have, or may have against [them] related to the [the property sale and environmental damage]” (TFI Release). As part of the TFI Release, WP waived application of Civil Code section 1542 and “expressly acknowledge[d] that the significance and consequences of this waiver . . . is that if [it] should eventually suffer additional damage . . . , [it]…