Chevron U.S.A. Inc. v. Superior Court

In Chevron U.S.A. Inc. v. Superior Court (1994) 44 Cal.App.4th 1009, the facts were that Chevron sold and installed on DiSalvo's property certain underground fuel storage tanks, which, over time, contaminated the soil. DiSalvo sued Chevron for reimbursement of money already spent and to be spent to complete the environmental cleanup required by county authorities, contending the contamination was caused by defective installation of the tanks 19 years earlier. Those causes of action were based on theories of negligence, breach of contract, continuing nuisance, continuing trespass, and indemnity. The court held that the allegations of a continuing nuisance that was caused by a latent construction defect must be filed within the 10-year statute of limitations. The court said it is consistent to apply section 337.15 to continuing nuisance and continuing trespass causes of action, because this "furthers the Legislature's goal of setting an outside limit to protect contractors from extended liability." (Chevron, supra, at p. 1018.) The court in Chevron further explained that "when the complaint alleges a latent construction defect leading to a continuing nuisance (or trespass), the first step is to determine whether the action is timely under continuing nuisance (or trespass) principles. Has it been filed before abatement of the nuisance (or trespass) or within three years after abatement? If so, the second step is to determine whether the action has been filed within ten years of the date of substantial completion of the improvement." (Id. at pp. 1017-1018.) Also in Chevron, supra, 44 Cal.App.4th 1009, 1018, footnote 4, the court commented: "The Legislature's failure specifically to address the problem of pollution caused by construction did not engraft a pollution exception upon the broad terms of section 337.15."