ELR Citation: ELR 20191
No(s). B201195 (Cal. App. 2d Dist. Jul 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.