California Sansome Co. Polk Market Co. v. U.S. Gypsum W.R. Grace & Company,--Conn.

On April 21, 1989, California Sansome Company and Polk Market Company (“San-some”) filed an action against United States Gypsum Company and W.R. Grace & Company (“U.S. Gypsum”) claiming asbestos-related damages in two of their buildings located in San Francisco, California. The action was brought pursuant to federal diversity jurisdiction, 28 U.S.C. § 1382 . U.S. Gypsum manufactured the asbestos-containing fireproofing used during the construction of these buildings. Sansome seeks approximately $20 million in compensatory and punitive damages, primarily to recoup costs for analysis, removal, and replacement of asbestos-contaminated property, and for the loss of the use of the buildings.

U.S. Gypsum contends Sansome’s action is barred by California’s three-year statute of limitations. It claims the alleged contamination occurred well before April 21, 1986, three years before Sansome filed suit. In addition, U.S. Gypsum asserts Sansome knew or should have known of the contamination of the buildings at or near the time of their construction in 1968, or at least at the time of the first remodeling shortly thereafter. Thus, U.S. Gypsum also argues that Sansome’s suit is barred under…