Opinion ID: 2585937
Heading Depth: 4
Heading Rank: 2

Heading: Factual findings regarding contamination

Text: The dispute was arbitrated in 2003, and the arbitrator issued findings of fact, conclusions of law, and a final award. He subsequently issued supplemental findings of fact and conclusions of law, a revised final award, and a summary of all awards. The initial findings of fact stated that both lots had been contaminated in violation of federal and state environmental laws, and that Kinn and Singletary had intentionally misrepresented substantial and material historical environmental events that Mr. Singletary had direct, personal knowledge of . . . for the purpose of causing [Alaska Sales and Service] to enter into the transactions. The arbitrator further found that both the real estate contract and the asset purchase agreement contained misrepresentations about whether the property was contaminated, and that Alaska Sales and Service reasonably relied on the misrepresentations. In addition to liability under contract, the arbitrator found that each of the defendants had violated AS 46.03.822(a), which imposes strict liability for the costs resulting from an unpermitted release of a hazardous substance. As the arbitrator's opinion noted, the actions of Mr. Singletary in directing employees to shovel up the oiled gravel, place it into opaque bags, deposit[] the bags at the dump and replac[e] the removed gravel with clean gravel taken from a river bed represent[] an intentional violation of state, federal, and, probably, local environmental laws.