This property operated as a dry cleaner from 1965 to 2015, using tetrachloroethylene (PCE) solvent for approximately fifty years. PCE and petroleum hydrocarbons were released to soil and groundwater through leaking underground storage tanks and improper waste disposal, and sub-slab vapor concentrations beneath the building reached 441,000 µg/m³ PCE and 12,700 µg/m³ TCE — driving indoor air contamination into an adjacent bakery and residence at levels exceeding ten times Oregon DEQ's risk-based concentrations. An interim removal measure in 2019 installed sub-slab depressurization systems to mitigate vapor intrusion, but source area treatment and full remediation have not yet been completed. A Prospective Purchaser Agreement with Consent Judgment obligates the current owner, Pacific Skyline Holdings II LLC, to complete DEQ-specified cleanup work, and the site remains under active DEQ project management. That history could support an insurance coverage claim against the carriers who issued policies more than 40 years ago — coverage that could help fund the cleanup ahead.
Pre-1986 Commercial General Liability (CGL) policies were occurrence-based and did not contain an effective pollution exclusion in Oregon — and those policies may provide coverage that remains enforceable today. If contamination occurred while those policies were active, those historical insurance carriers may still have a legal obligation to fund the cleanup costs, even if the business closed or the property changed hands.
The contamination at this property originated from dry-cleaning operations that began in 1965 — more than two decades before 1986 — and continued for approximately fifty years, releasing PCE into soil, groundwater, and vapor pathways. With only interim vapor mitigation systems in place and full source area remediation, groundwater cleanup, and long-term monitoring still ahead under the active Prospective Purchaser Agreement, the ongoing and future cleanup costs this property faces are substantial — and are precisely the type of obligations that historical pre-1986 carriers may be required to fund going forward.
Restorical's role is to locate viable historical policies, determine whether a successful coverage claim is possible, and assist our clients and their legal counsel to obtain insurance coverage. Restorical then manages the claim, including accounting, to ensure the cleanup is funded in a timely manner.
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Contact UsThis analysis is preliminary and based on publicly available records. Restorical Research is not a law firm and does not provide legal advice.