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Property II
University of Idaho School of Law
Beard, D. Benjamin

PROPERTY II SPRING 2006 OUTLINE
 
I.                   Nuisance- an interference that substantially impairs the use and enjoyment of land.
 
A.    Nuisance v. Trespass:
                        1. Trespass: for intentional trespass, there is strict liability
                                    •Don’t have to have harm for trespass
                                    a. Martin v. Reynolds Metals- found trespass when noxious gas                                                      leaked onto Ps land
                              i. Crt. found trespass but still applied the balancing test
                              ii. Crts. will do the same thing for water spilling over onto                                             land
                              iii. Crts. are blurring the line between nuisance and trespass
                        2. Nuisance- an interference that substantially impairs the use and                           enjoyment of property. 
                                    •Harm must be substantial to recover under the theory of nuisance
 
B.     To Give Rise to Nuisance Liability, Interference Must Be:
      1. Substantial
      2. Either Intentional or Unintentional
                  a. Unintentional- negligent, reckless, or ultrahazardous conduct
                              i. Negligent
                              ii. Reckless
                              iii. Ultrahazardous is conduct like blasting, using                                                            chemicals, etc.
                                          A. Strict liability if the unintentional interference is                                                        the caused by ultra hazardous conduct
                  b. Intentional- see below
 
C.    Intentional Interference For Nuisance Liability
      1. Elements:
            a. Foreseeable -For an act to be intentional, it must be                                          foreseeable
                        i. The harm doesn’t have to be the purpose for D’s                                                    interference
                        i. Standard: D knew or should have known
            b. Unreasonable- Morgan v. High Penn Oil Company
                                                i. Morgan: Nuisance- sick trailer park
                                                            •D running an oil refinery and it is expelling out                                                                                noxious gas
                                                            •P is running residential/small business and a                                                                                     restaurant
                                                            •It is not particularly clear in this case if they are                                                                               using the threshold test or the balancing test
                                                ii. Unreasonable tests
                                                            a. Balancing Test- weigh the harm against the                                                                                  utility
                                                                        1. How substantial is the harm to the P in                                                                                          comparison to the utility?
                                                                        2. It is not purely economic (relative to the                                                                                        particular person)
                                                                                    Ex.- Crt. will look at what it would                                                                                                    cost for the Company  to shut                                                                                                down to prevent gases from                                                                                                   being expelled compared to                                                                                                  the Ps cost of moving and                                                                                                      losing livelihood
                                                                        3. Who was there first is factored in, doesn’t                                                                                     necessarily mean that if the nuisance                                                                                      was there first the P is precluded                                                                                            from bringing suit.
                                                                        4. Factors to consider when applying test                                                                                         for unreasonableness:
 
                                                                                     Burden of Harm to P:
                                                                                    a. Extent and character of the                                                                                       harm — health problems,                                                                                                  economic harm, etc.
                                                                                    b. Social value of P’s use of land
                                                                                    c. Suitability of P’s use to the                                                                                         locality in question
                                                                                    d. Burden on P of avoiding the                                                                                      harm.
 
                                                                                    Utility of D’s Use:
                                                                                    a. Social value of D’s use of land
                                                                                    b. Suitability of D’s use to the                                                                                        locality in question
                                                                                    c. Impracticality of D preventing                                                                                   the harm.
 
                                                            b. Threshold Approach- if harm reaches a certain                                                                           level, they are not going to apply the                                                                                      balancing test.
                                                                        • Jost: nuisance was dairy cows
                                                                                    1. Court didn’t allow evidence of the                                                                                                            utility of the cows
                                                                                    2. Unfairness to weighing the utility                                                                                                  of a huge company compared                                                                                                 to one little guy (balancing                                                                                                     might weigh in favor of the                                                                                                  nuisance)
                                  c. Second Restatement
                                                i. Restatement allows a finding of nuisance if either the                                                        a) harm outweighs the social use, OR the b) harm is                                                                      substantial and it can be feasibly compensated                                                                        by damages.
                                                ii. Two Approaches:
a.      Balancing Test
b.      Whether the harm caused is serious, but recovery is limited by:
            1. Whether the financial burden of                                     compensating for the nuisance                                 going to be feasible?
                        •Still a balancing but on the utility                                         side; How harmful is it to                                           mitigate this harm                                                             (financially)?
                        •No cases have applied this part of                                         the Restatement
                        •Crts. typically apply the                                                      Balancing or Threshold                                            Tests
 
D.    Half-way House Example as Nuisance
1.      Harms- decrease in property value, fear of harm, etc.
2.      Action is intentional- not that they are locating the house there to decrease property value; rather it is a foreseeable c

  benefited the community and the builder                                                                               should have known.
5.      Spite
               a. HOLDING: Crts. commonly find liability in instances                                where a landowner builds a structure w/ no use                                             whatsoever than to vex a neighbor.
6. Aesthetic Nuisance- AKA “ugliness”
               a. HOLDING: Most Crts. hold that unsightliness alone                                  does not make a nuisance unless spite is the only                                           motive.
               b. Exception: A junkyard in a residential area might be a                                 nuisance if unreasonably operated and unduly                                               offensive. 
 
F. Threshold Test Defeating Balancing Test
                        1. Estancias Dallas Corp. v. Schultz (loud air conditioning unit)
                        •P seeking to enjoin the air conditioning unit at an apartment
            a. Harm- noise and decrease in property value(residential                                        property)
            b. Remedy- granted the injunction
            c. Analysis
                        i. Property value was $25k to start and somewhere between                                     $10-12k after the nuisance
                        ii. Cost of replacing the air conditioning (can’t get rid of it                                       b/c they can’t rent apartments w/o air conditioning)                                            would be $150-$200k
            d. If balancing is purely economic, why did the crt. rule for                                the injunction?
                        i. Threshold Test- the nuisance exceeded the                                                             threshold
                        ii. Also, no evidence of a housing shortage
                        iii. Only cost $40k to implement the correct air units                                                 when they built the apartments (element of                                                   fairness)
                        iv. Timing also came into play (residence there                                                          before apartment complex)
            e. What happens next after awarding an injunction?
                        i. P has the power after the injunction is awarded
                        ii. Starting point $149,999.99 and work your way down
                        iii. Some critics argue that this is not an efficient result
 
G. Balancing Test In Favor of D, Damages Still Awarded
            1.Boomer v. Atlantic Cement Co. (blasting cement case)
                        •P seeking to enjoin the blasting at the cement plant
                        •Even though the utility of the D’s conduct outweighs the injury to                                   the P, the court determines there is a nuisance because the                                              Ds action involved an             intentional and unreasonable                                                  invasion. (Although the damage to the P may be slight                                       compared to the D’s expense of abating the condition, that                                      is not a good reason for refusing the injunction.)
            a. Harm: noise, air pollution, cracking of the foundation of                                     residential units
            b. Remedy: permanent damages; remands down to a lower crt. to                           award a temporary injunction until damages are paid
                        i. Permanent damages- not just payment for harm that has                                     occurred to date, but also for harm in