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Gehr v. Baker Hughes Oil Field Operations, Inc.

ELR Citation: 38 ELR 20191
Nos. No. B201195, (Cal. App. 2d Dist., 07/30/2008)

A California appellate court upheld the dismissal of a continuing nuisance claim brought by the owners of contaminated property against the former owners for damages stemming from a prospective lender's refusal to refinance the property. Specifically, the owners sought to recover interest rate differential damages. The court ruled that the owners' interest rate differential claim was indistinguishable from a diminution in value claim. Under California law, damages for diminution in value may only be recovered for permanent, not continuing, nuisances. And because the limitations period for bringing a permanent nuisance claim has expired, their claim was properly dismissed.