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City of Los Angeles v. San Pedro Boat Works

635 F.3d 440 (2011)

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City of Los Angeles v. San Pedro Boat Works

United States Court of Appeals for the Ninth Circuit
635 F.3d 440 (2011)

Facts

San Pedro Boat Works (defendant) was owned by the City of Los Angeles (city) (plaintiff) and run by the Board of Harbor Commissioners. The Board of Harbor Commissioners was responsible for issuing permits for land use at the Los Angeles Harbor. The Board of Harbor Commissioners issued a revocable permit to the Los Angeles Harbor Marine Corporation (L.A. Harbor Marine). Pacific American purchased the assets of L.A. Harbor Marine, including the permit, with the city’s necessary and prior approval. Pacific American conveyed all assets, except the permit, to its San Pedro Boat Works subsidiary. Pacific American later assigned the permit to San Pedro Boat Work. The city sued BCI Coca-Cola Bottling Company of Los Angeles (BCI Coca-Cola), San Pedro Boat Work, and other parties for counts relating to environmental contamination. The city asserted that Pacific American owned the boat works because it held a revocable permit from the city. The district court held that the revocable permits were insufficient to establish owner liability of Pacific American under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). The decision was appealed.

Rule of Law

Issue

Holding and Reasoning (Bea, J.)

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