Long Beach Unified School District v. Dorothy B. Godwin California Living Trust, and Mobil Oil Corporation, Powerine Oil Co.

We must decide whether the holder of an easement burdening land which contains a hazardous waste facility is, by virtue of that interest alone, liable for cleanup costs as an “owner” or “operator” under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C. § 9601 et seq.

I

Appellant, Long Beach Unified School District (“the district”), bought land from the Dorothy B. Godwin California Living Trust and the Grover Godwin California Trust (“the trusts”). Before the sale, this land was leased to the Schafer Bros. Transfer and Piano Moving Company (“Schafer Bros.”), which maintained a waste pit on it.

The district knew about this pit before closing the deal because the trusts’ site assessment had revealed the contamination, ER 4, and had estimated that decontamination would cost $249,000. Id. As a condition of the sale, the district required the trusts to put $250,000 in escrow for cleanup. ER 5.

This amount turned out to be not nearly enough. Though it paid for an expert evaluation of the site, nothing was left to even start a cleanup. And so, apparently through its own short-sightedness, the school district was left holding a rather…