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Manoutcherh & Jaleh Movassate v. Chris Twardus and Mark

February 16, 2011

MANOUTCHERH & JALEH MOVASSATE,
TRUSTEES, MOVASSATE FAMILY TRUST, COLLIERS PARISH INTERNATIONAL, PLAINTIFF,
v.
CHRIS TWARDUS AND MARK DUDLEY RIDGE PROPERTIES, LLC, ET AL.,
DEFENDANTS.



The opinion of the court was delivered by: Lucy H. Koh United States District Court

(re: docket #47)

ZAMUDIO'S MOTION TO DISMISS WITH LEAVE TO AMEND

Comprehensive Environmental Responses, Compensation, and Liability Act ("CERCLA"), Cal. Health & Saf. Code § 25363(e). Plaintiffs seek response costs in connection with alleged 21 contamination of property located at 450 Montague Expressway, Milpitas, California (the "Property"). In addition to these claims for recovery of response costs, Plaintiffs also bring 23 numerous state law claims in connection with their June 2008 purchase of the Property, including 24 claims of professional negligence and breach of fiduciary duty against Defendants Colliers Parish Presently before the Court is the Broker Defendants' motion to dismiss for failure to state a claim.

Broker Defendants' motion to dismiss is GRANTED WITH LEAVE TO AMEND. United States District Court For the Northern District of California

ORDER GRANTING DEFENDANTS

Plaintiffs Manoutcherh Movassate and Jaleh Movassate, trustees of the Movassate Family Trust, bring suit for recovery of response costs against various Defendants under the U.S.C. § 9601 et seq. and the California Hazardous Substance Account Act ("California HSAA"), International, Inc., Mark P. Zamudio and Chris C. Twardus' (collectively "Broker Defendants").

The Court held a hearing on this matter on January 27, 2011. For the reasons set forth below, Expressway, Milpitas, California. Pls.' First Am. Compl. ("FAC") ¶ 4. Plaintiffs purchased the Property in a June 20, 2008 Purchase and Sale Agreement ("June 2008 Agreement"). Plaintiffs 8 allege they purchased the Property pursuant to Defendants' "false representations" that the

I. BACKGROUND

A. The Parties

1. Plaintiffs: Buyers of Property

Plaintiffs are Manoutcherh Movassate and Jaleh Movassate, trustees of the Movassate Family Trust ("Plaintiffs"). Plaintiffs are the owners of record of the Property at 450 Montague Property was not contaminated with hazardous substances. Id. 10 Plaintiffs have sued various sets of Defendants in connection with the June 2008 Agreement and allegation of contamination. Plaintiffs bring suit against the entity that sold them 13 the Property, namely Dudley Ridge Properties, LLC ("Dudley Ridge"), a California limited 14 liability company. Id. at ¶ 5. According to Plaintiffs' allegations, another Defendant, Lost Hills Dudley Ridge through a merger of the two companies. Id. at ¶ 6.

2. Defendants: Seller, Former Tenant and Brokers of the Property United States District Court For the Northern District of California LLC ("Lost Hills") is a Washington limited liability company, and is the successor in interest to Besides the seller of the Property, Plaintiffs also name a former tenant, Peco Controls Corporation ("PECO") as a Defendant. Plaintiffs allege that PECO, a California corporation, 19 leased the Property from Dudley Ridge and manufactured machinery for the cannery industry. Id. 20 at ¶ 7.

Finally, Plaintiffs have named as Defendants the real estate brokers that provided services in connection with the eventual sale of the Property in June 2008. Defendant Colliers International Zamudio ("Zamudio"), an employee and Vice-President of Colliers, served as Defendant Dudley C. Twardus ("Twardus"), also an employee and Vice-President of Colliers, served as Plaintiffs' 27 real estate broker in connection with the purchase of the Property. Id. at ¶ 10. Colliers acted as an 28 authorized dual agent and broker. Id. at ¶ 99.

Asset Management, Inc. ("Colliers") is a California corporation. Id. at ΒΆ 8. Defendant Mark P. Ridge's real estate broker in connection with the sale of the ...


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