Opening Statement

Harz, et al. v. California Capital Insurance

Company

U.S. Post Office San Roque Station From State Street

The Site

U.S. Post Office and One Hour Martinizing Locations From State Street

Dutch Maid Cleaners, Facing Toward the Front, the Alley Is On the Opposite Side

The Site

U.S. Post Office Location, Rear Parking Lot

Alley Between U.S. Post Office and Dutch Maid Cleaners, Looking Toward State Street

Standard Pollution Exclusion With an Exception for Sudden and Accidental Events

“This insurance does not apply: . . . (f) to bodilyinjury or property damage arising out of thedischarge, dispersal, release or escape of smoke,vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials orother irritants, contaminants or pollutants into orupon land, the atmosphere or any water course orbody of water; but this exclusion does not apply ifsuch discharge, dispersal, release or escapeis sudden and accidental.” (Emphasis added.)

Concentration of PCE in Groundwater – Nov. 1999

Q. And so you estimate that, three to four time, to the best of your recollection, between ’78 and ’82, that you lost al perc that was in the holding tanks due to a boot failure, correct?

A. Correct. -- Zell Testimony 128:2-5, 5/1/97

The Site

Claims Against the Harz Family – Same or Less Than in Richard Cross-Complaint

Claimant Date Response Costs Under Health and

Saftey Code or CERCLA?

Declaratory Relief?

Waste? Private Nuisance?

Public Nuisance?

Trespass? Water Code?

Negligence? Contribution or Equitable Indemnity?

Ultrahazarous Activity?

Richard 4/25/94 Yes Yes Yes Yes Yes Yes Yes Yes Yes YesRichard 7/7/95 Yes Yes Yes Yes Yes Yes Yes Yes Yes YesRichard 7/18/95 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Deloretto 8/9/95 Yes Yes No Yes Yes Yes Yes Yes Yes YesTeam 8/17/95 Yes Yes No No No No No Yes Yes YesZell 8/25/95 Yes Yes No Yes Yes Yes Yes Yes Yes YesCity 9/6/95 Yes Yes No No Yes Yes Yes Yes Yes Yes

S.E.A. 10/20/95 Yes Yes Yes Yes No No Yes Yes Yes NoS.E.A. 11/3/95 Yes Yes Yes Yes No No Yes Yes Yes NoS.E.A. 4/24/96 Yes Yes Yes Yes No No Yes Yes Yes No

Richard 1/2/97 Yes Yes Yes Yes Yes Yes Yes Yes Yes YesTeam 1/22/97 Yes Yes No No No No No Yes Yes YesS.E.A. 10/1/97 Yes Yes Yes Yes No No Yes Yes Yes No

Deloretto 11/10/00 Yes Yes No Yes Yes Yes Yes Yes Yes Yes

Allegations of How the Harz Family Caused Contamination – Same or Less Than in Richard Cross-Complaint

Claimant Date Abandoned Well? Sewers? Tanks? Conduit Allegations?

Escape, Release or Dispersal

Allegations?Richard 4/25/94 Yes (Para. 4.) Yes (Para. 4.) Yes (Para. 4.) Yes (Para. 4.) Yes (Para. 6, 11.)

Richard 7/7/95 Yes (Para. 3.) Yes (Para. 3.) Yes (Para. 3.) Yes (Para. 18.) Yes (Para. 18, 19.)

Richard 7/18/95 Yes (Para. 3.) Yes (Para. 3.) Yes (Para. 3.) Yes (Para. 18.) Yes (Para. 18, 19.)

Deloretto 8/4/95 Yes (Para. 4, 57.) Yes (Para. 5, 57.) Yes (Para. 4.) Yes (Para. 39.) Yes (Para. 56.)

Team 8/17/95 No No No No Yes (Para. 1, 10.)

Zell 8/25/95 Yes (Para. 5.) Yes (Para. 5.) Yes (Para. 5.) Yes (Para. 25.) Yes (Para. 41.)

City 9/6/95 No Yes (Para. 16.) No No Yes (Para. 16.)

S.E.A. 10/20/95 Yes (Para. 3, 16, 33.) Yes (Para. 16, 26, 33.) Yes (Para. 3, 16, 33.) Yes (Para. 16.) Yes (Para. 25, 27, 33.)

S.E.A. 11/3/95 Yes (Para. 3, 16, 33.) Yes (Para. 16, 26, 33.) Yes (Para. 3, 16, 33.) Yes (Para. 16.) Yes (Para. 25, 27, 33.)

S.E.A. 4/24/96 Yes (Para. 3, 16, 33.) Yes (Para. 16, 26, 33.) Yes (Para. 16, 26, 33.) Yes (Para. 16.) Yes (Para. 25, 27, 33.)

Richard 1/2/97 Yes (Para. 3.) Yes (Para. 3.) Yes (Para. 3.) Yes (Para. 18.) Yes (Para. 18, 19.)

Team 1/22/97 No No No No Yes (Para. 1, 10.)

S.E.A. 10/1/97 Yes (Para. 3, 19, 33.) Yes (Para. 19, 26, 33.) Yes (Para. 19, 26, 33.) Yes (Para. 19.) Yes (Para. 28, 30, 36.)

Deloretto 11/10/00 Yes (Para. 2, 3, 60.) Yes (Para. 5, 60.) Yes (Para. 2, 3, 60.) Yes (Para. 33.) Yes (Para. 45.)