Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_00-cv-00113/USCOURTS-caed-2_00-cv-00113-36/pdf.json

Nature of Suit Code: 893
Nature of Suit: Environmental Matters
Cause of Action: 42:9607 Real Property Tort to Land

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CIV. S-00-113-LKK JFM (Consolidated)

STIPULATION TO PERMIT ENTRY OF DEFAULT 

JUDGMENT AND JUDGMENT THEREON 

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

AMERIPRIDE SERVICES INC., 

Plaintiff, 

v. 

VALLEY INDUSTRIAL SERVICES, INC., a 

former California corporation, et al., 

Defendants. 

Case No. CIV. S-00-113-LKK JFM 

(Consolidated) 

STIPULATION TO PERMIT ENTRY 

OF DEFAULT JUDGMENT AND 

JUDGMENT THEREON

HUHTAMAKI FOODSERVICE, INC., 

Plaintiff, 

v. 

AMERIPRIDE SERVICES, INC., 

Defendant. 

Date: 

Judge: Hon. Lawrence K. Karlton 

Plaintiff AmeriPride Services Inc. (“AmeriPride”), pursuant to the Comprehensive 

Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601 (“CERCLA”), the 

Resource Conservation and Recovery Act, 42 U.S.C. § 6901 (“RCRA”), and common law causes 

of action brought suit against a number of parties, including, without limitation, Texas Eastern 

Overseas, Inc. (“TEO”). AmeriPride and TEO are collectively referred to herein as the “Parties”. 

The Parties stipulate as follows: 

1. AmeriPride is the current owner of an industrial laundry facility located at 

LEE N. SMITH (#138071) 

MELISSA A. VERHAAG (#226755) 

STOEL RIVES LLP 

770 L Street, Suite 800 

Sacramento, CA 95814 

Telephone: (916) 447-0700 

Facsimile: (916) 447-4781 

Email: lnsmith@stoel.com 

Attorneys for Plaintiff 

AMERIPRIDE SERVICES INC. 

Case 2:00-cv-00113-MCE-DB Document 649 Filed 09/04/07 Page 1 of 6
STOEL RIVES LLP 

ATTORNEYS AT LAW

SACRAMENTO

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CIV. S-00-113-LKK JFM (Consolidated)

STIPULATION OF PERMIT ENTRY OF DEFAULT 

JUDGMENT AND JUDGMENT THEREON 

7620 Wilbur Way in South Sacramento, California (the “Facility”). AmeriPride alleges that in 

1997, tetrachloroethylene (PCE) contaminants were discovered beneath the facility, allegedly due 

to operations of prior owners or operators of the facility. To date, there were three existing cost 

recovery suits (including this one), one filed by AmeriPride (AmeriPride v. Valley Industrial 

Services, Inc., U.S.D.C. Case No. CIV. S-00-113-LKK JFM), and the second filed by the 

California-American Water Company (California-American Water Co. v. AmeriPride Services, 

Inc., U.S.D.C. Case No. CIV. S-02-1479 LKK JFM) for contamination to local drinking water 

wells allegedly from the site (dismissed on September 14, 2005), and the consolidated case filed 

by Huhtamaki Food Service, Inc. (“Huhtamaki”) (Huhtamaki Foodservice, Inc. v. AmeriPride 

Services, Inc., U.S.D.C. Case No. CIV. S-04-1494 LKK JFM) for alleged interference with the 

use of water supply wells. The court consolidated AmeriPride’s initial case and the instant case 

filed by Huhtamaki on November 3, 2005. AMERIPRIDE has also filed Cross-Claims and Third 

Party Claims herein against additional defendants in the other cases. 

2. AmeriPride is a Delaware corporation authorized to do business in California, and 

is the current owner of the Facility. AmeriPride is also the corporate successor to American 

Linen Supply Co., which was the parent corporation of Welch’s Overall Cleaning Company, Inc., 

the entity that purchased the Facility from Mission Industries in June 1983. 

3. Prior to June 1983, the date that American Linen Supply Company/ Welch’s 

Overall Cleaning Company, Inc. purchased the Facility, site soils and the underlying groundwater 

(which is the property of the State of California) had allegedly become contaminated with 

hazardous substances or hazardous wastes and was physically damaged through the acts and 

omission of others—including as AmeriPride alleges—TEO as successor to Valley Industrial 

Services. Such contamination allegedly migrated to neighboring properties, including, but not 

limited to, property now owned and operated by Huhtamaki. Welch’s Overall Cleaning 

Company, Inc. was merged into AmeriPride Services Inc. in 1998. 

4. The original Facility was believed to be constructed in or about 1960 by Valley 

Industrial Laundry, which was owned by Alan Fields and Frank Wenters. 

5. Valley Industrial Services, Inc. (“VIS, INC.”) was incorporated in 1972. VIS, 

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ATTORNEYS AT LAW

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CIV. S-00-113-LKK JFM (Consolidated)

STIPULATION OF PERMIT ENTRY OF DEFAULT 

JUDGMENT AND JUDGMENT THEREON 

INC. was duly organized and existed under the laws of the State of California, and owned and 

operated the Facility until 1983. 

6. During the time VIS, INC. and/or Valley Industrial Laundry owned and operated 

the Facility, there is evidence that dry cleaning solvents including Tetrachloroethylene, also 

known as Perchloroethylene (“PCE”) were used. 

7. Between 1972 and 1983 VIS operated the Sacramento Facility. During this time it 

was a wholly owned subsidiary of Petrolane Incorporated, a publicly held California company. 

8. In 1983, Welch’s Overall Cleaning Company, Inc. acquired the assets of several 

facilities including VIS, Inc.’s Sacramento location. 

9. In 1984, Texas Eastern “acquired” Petrolane and its inactive subsidiary, VIS. In 

1989, Petrolane was sold to an unrelated entity. In 1990, another entity and VIS merged into 

Automotive Repairs, Inc. In turn, in 1991, Automotive Repairs merged into TEO. TEO, a 

Delaware corporation, dissolved in 1992. 

10. In or about March 1997, AmeriPride, through its environmental consultant, 

performed an investigation of the soil at the Facility, in connection with AmeriPride’s remodel of 

the Facility. The soils were found to contain PCE. In or about April 1997, the consultant 

submitted this information to the County of Sacramento Environmental Health Department. 

11. Pursuant to County and Regional Board directives, AmeriPride has engaged in 

various investigative efforts to determine the extent and cause of the PCE contamination, all of 

which it contends are in compliance with the National Contingency Plan, 40 C.F.R. section 300 

et seq.

12. On or about January 19, 2000, AmeriPride filed its initial complaint against the 

following parties: Valley Industrial Services, Inc.; Petrolane, Inc.; Texas Eastern Corporation; 

Texas Eastern Overseas, Inc.; UGI Corporation; Amerigas Propane, Inc.; Amerigas, Inc.; 

Amerigas Partners, LP; Mission Linen Supply; DHM Enterprises, Inc.; Chromalloy American 

Corporation; and General Radiator, Inc. The First Amended Complaint was filed on or about 

January 20, 2000. 

13. On July 13, 2000, the First Amended Complaint was answered on behalf of Texas 

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CIV. S-00-113-LKK JFM (Consolidated)

STIPULATION OF PERMIT ENTRY OF DEFAULT 

JUDGMENT AND JUDGMENT THEREON 

Eastern Overseas, Inc. asserting its dissolved status. TEO answered for itself and “as successor” 

to Valley Industrial Services, Inc. 

14. The Second Amended Complaint was filed on August 1, 2000. 

15. On September 7, 2000, the Second Amended Complaint was answered on behalf 

of Texas Eastern Overseas, Inc. asserting its dissolved status. TEO answered for itself and “as 

successor” to Valley Industrial Services, Inc. 

16. On January 31, 2001, the parties stipulated to allow Texas Eastern Overseas, Inc. 

to respond to the Third Amended Complaint on or before February 23, 2001. 

17. On February 23, 2001, the Third Amended Complaint was answered on behalf of 

Texas Eastern Overseas, Inc. asserting its dissolved status. TEO answered for itself and “as 

successor” to Valley Industrial Services, Inc. 

18. AmeriPride estimates that its total expenditures at the site will exceed $25 million, 

including costs of settlement. 

NOW, THEREFORE, the parties agree as follows: 

1. Pillsbury Winthrop Shaw Pittman LLP is hereby granted leave to withdraw as 

counsel for TEO; and 

2. Counsel for TEO and counsel for AmeriPride have tendered AmeriPride’s claims 

to certain insurers. If, after sixty (60) days after notice of this Order, no counsel appears on 

behalf of TEO, AmeriPride may take a default judgment as against Texas Eastern Overseas, Inc. 

for itself and/or as successor to VIS, Inc. in the form attached hereto as Exhibit A, provided 

however that such judgment shall be: 

(a) satisfied only from insurance proceeds or an insurance settlement and from no 

other source: and 

(b) of no force or effect whatsoever against any other funds or assets or the funds or 

assets of any current or former affiliate, parent, officer or director, employee or attorney of TEO; 

and 

(c) shall have no preclusive or precedential effect whatsoever except as against any 

insurance company; and 

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STOEL RIVES LLP 

ATTORNEYS AT LAW

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CIV. S-00-113-LKK JFM (Consolidated)

STIPULATION OF PERMIT ENTRY OF DEFAULT 

JUDGMENT AND JUDGMENT THEREON 

(d) the accompanying default judgment shall not be a final judgment on the merits, 

and AmeriPride hereby consents to the setting aside of this judgment within ninety (90) days of 

entry if TEO—through its insurers—wishes to litigate this matter. 

DATED: May ____, 2007. STOEL RIVES LLP

By: /s/ Lee N. Smith 

LEE N. SMITH 

Attorneys for Plaintiffs 

AMERIPRIDE SERVICES INC. 

DATED: May ____, 2007. PILLSBURY WINTHROP SHAW 

PITTMAN LLP 

By: /s/ John S. Poulos 

JOHN S. POULOS 

Attorneys for Defendant 

TEXAS EASTERN OVERSEAS, INC. 

IT IS SO ORDERED. 

DATED: September 4, 2007 

Case 2:00-cv-00113-MCE-DB Document 649 Filed 09/04/07 Page 5 of 6
STOEL RIVES LLP 

ATTORNEYS AT LAW

SACRAMENTO

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CIV. S-00-113-LKK JFM (Consolidated)

STIPULATION OF PERMIT ENTRY OF DEFAULT 

JUDGMENT AND JUDGMENT THEREON 

EXHIBIT A

JUDGMENT

Pursuant to the stipulation between AmeriPride Services, Inc. (“AmeriPride”) and Texas 

Overseas, Inc. for itself and as a successor to VIS, Inc. (“TEO”) to permit entry of default 

judgment, it is hereby ORDERED, ADJUDGED, and DECREED that judgment be entered 

against TEO itself and successor to VIS, Inc. in the favor of AmeriPride in the amount of $25 

million. 

This judgment may be satisfied with and is enforceable against only insurance proceeds, if 

any, from any applicable policy or insurance settlement and shall have no force or effect 

whatsoever against any other funds or assets or the funds or assets of any current or former 

affiliate, parent, officer, director, agent, attorney or employee of TEO. 

It is further ORDERED, ADJUDGED, and DECREED that judgment shall have no 

preclusive or precedential effect whatsoever except as against any applicable insurance company. 

This default judgment shall not be deemed a final judgment on the merits. 

Case 2:00-cv-00113-MCE-DB Document 649 Filed 09/04/07 Page 6 of 6