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Selma Pressure Treating Co. v. Osmose Wood Preserving Co.

6/25/1990

pers Company, Inc., Ventron Corporation, Seymour Chemical and Van Waters and Rogers, Inc., are no longer parties to the appeal and writ pursued by Petery and SLC.


Facts


The facts come from the various pleadings as filed by the parties.


In 1961 Petery acquired and began operating a wood treatment facility at Selma, California. The premises had housed wood treating facilities since at least 1941. Petery and Mary Ann Schuessler were married at that time. In 1970 and 1971, defendant corporations SPTC and SLC were formed. Petery and Schuessler were coowners of SPTC which, after 1970, officially ran the wood treating facilities. Title to the property was put in the name of SLC; SPTC leased the premises.


Back in 1964, before incorporation, Osmose entered into both written and oral licensing agreements with Petery and Schuessler to provide wood treating chemicals. In addition, Osmose agreed to "finance, design, manufacture, assemble, install, and construct" equipment and facilities for pressure wood treating. Ultimately, two pressure wood treating cylinders were installed by Osmose. Osmose provided training and education regarding, among other things, the disposal of the wood treating chemicals. Petery claimed Osmose knew such wastes were harmful and did not inform Petery of that fact. Indeed, Osmose recommended the construction of an unlined dirt pond on the property to receive the discharge or release of waste chemicals which Petery constructed. Petery further alleged Osmose misrepresented the injurious nature of the wood treating chemicals on the environment. The business relationship with Osmose terminated toward the end of 1966.


In November of 1966 Petery signed, as owner of Selma Pressure Treating Co., a licensing agreement with Koppers. The allegations concerning Koppers are similar to those relating to Osmose, basically alleging that Koppers installed equipment and made recommendations of operating practices, including the construction of dry wells and unlined dirt ponds to receive wastes, which resulted in wood treating chemicals being deposited in the soil overlying the aquifer. Again, allegations were made that Koppers misrepresented the reaction of the wood treating chemicals in the soil and the potential for injuring the environment.


The agreement with Koppers was renewed when SPTC was incorporated. Similarly, when Petery and Schuessler divorced in 1977 and Schuessler acquired all the stock in SPTC, Schuessler signed a new agreement with Koppers. The relationship between SPTC and Koppers lasted until 1981 when SPTC ceased operating the facility.


As to the chemical suppliers, Petery and SLC allege that in addition to supplying the toxic wood treating chemicals, the companies provided assistance and advice which was followed by cross-complainants. Petery also claimed the companies knew, or should have known, of the potential health threats posed by improper use of the chemicals, and the companies failed to warn him. This failure to warn allowed the toxic chemicals to escape into the environment and contaminate the soil and aquifer.


The State was not quiet during this time. In 1972 the California Regional Water Quality Control Board, Central Valley Region (Board), issued an order entitled "Waste Discharge Requirements" for SPTC. The Board found that "Selma Pressure Treating Company discharges an estimated


four gallons per day of highly toxic wastes . . . ." SPTC was ordered that its "discharge shall not cause a pollution of ground or surface waters" or a nuisance. Further, the order provided that " astes discharged into unlined sumps" etc., were limited in the amounts of certain identified

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