SANTA ANA, Calif. (Legal Newsline) – A California agency is suing the owners of a Los Angeles property over allegations the site contains hazardous substances that the state has spent more than $2 million on for cleanup efforts.
The California Department of Toxic Substances Controls and The Toxic Substances Control Account filed a complaint Dec. 9 in the U.S. District Court for the Central District of California against The FHL Financial Group citing the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)
According to the suit, FHL obtained a property that was once used by Spence Cleaners to operate its dry cleaning business, which caused the release of hazardous substances into the ground water. The cleaners operated on the site from the 1930s until the 1970s and the plaintiffs allege the site "remains contaminated with hazardous substances, and releases or threatened releases of hazardous substances from the site into the environment."
The plaintiffs also claim their response costs for cleaning the site as of June 1, amount to more than $2.2 million and that FHL has refused to pay any portion of the costs.
"Plaintiffs are informed and believe that the property has increased in value since FHL acquired it, and will increase significantly more after the department completes response activities at the site and certifies the site as requiring no further action," the suit states. "Accordingly, defendant FHL stands to reap substantial financial gains from continuing to hold the property as an investment, as it has done for more than a decade."
The plaintiffs seek monetary relief of $2.2 million, litigation costs and all other just relief. They are represented by Deputy Attorney General John Everett of the California Attorney General's office in San Diego.
U.S. District Court for the Central District of California case number 8:19-CV-02370-JVS-KES