ELR Citation: ELR 20327
No(s). F 88-307 (N.D. Ind. Jul 19, 1990)

The court holds that under Indiana law, service station lessees' contractual release of claims against the lessor bars all claims including torts and contracts, and that the release bars contribution claims under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). The lessees claim that the lessor overfilled underground storage tanks, causing leakage that contaminated the soil and groundwater, and that the les or improperly removed underground tanks, causing further spillage and contamination. The court holds that filling and removing the underground storage tanks "arise out of" the use of the real estate. The lessees released the lessors of all claims and obligations arising out of the use of the property. The court holds that although the lessees are tenants in the entirety, under Indiana law each individual tenant may release his own rights against third parties. The court holds that the lease agreements are not adhesion contracts under Indiana law because the lessees do not claim that they were unaware of the terms of the lease or that they signed the release unwillingly. The court holds that the release provisions unambiguously release lessors from future causes of action, including CERCLA and the Indiana Underground Storage Tank Act. The court finds that releasing lessors of liability is not unconscionable or otherwise violative of public policy. Finally, the court holds that the language of the release provisions applies to all claims arising in tort or contract, or based on a statute.

Counsel for Plaintiffs
Max E. Hobbs, 590 Lincoln Bank Tower
Fort Wayne IN 46802-2480
(219) 423-4422

Jacqueline A. Simmons, L. Alan Whaley
Ice, Miller, Donadio & Ryan, One American Sq., P.O. Box 82001
Indianapolis IN 46282-0002
(317) 236-2100

Counsel for Defendant/Counterclaim Plaintiff
Renee R. McDermott, Barnes & Thornburg
One Summit Sq., Ste. 600
Indianapolis IN 46802
(219) 423-9440