Bifalgorithm post · Property · Property Rules and Liability Rules: Practice

Permanent Damages

Permanent Damages (Property · Property Rules and Liability Rules: Practice) — "The lower courts awarded damages for the amounts incurred up to trial but denied…

Ideas in this flowchart

  • Remedy for a permanent and unabatable nuisance
  • The lower courts awarded damages incurred through trial.
  • They denied an injunction against the defendant’s operations.
  • The plaintiffs would otherwise need successive actions as further harm occurred.
  • Special Term determined the permanent damage attributable to each plaintiff.
  • The parties did not stipulate to payment and acceptance of that amount as a settlement.
  • Literal application of the established rule would have closed the plant immediately.
  • The court chose to avoid this immediately drastic remedy.
  • The court granted an injunction conditioned on payment of permanent damages.
  • Payment of permanent damages would redress present and future economic loss to the plaintiffs’ properties.
  • A short abatement period would not assure technical improvements.
  • Such an abatement period could lead to later applications for extensions.
  • The judgment would fully redress the particular parties.
  • Public health and other public agencies would remain free to seek proper relief.
  • The risk of permanent-damage liability could encourage research into improved techniques.
  • For a permanent and unabatable nuisance, a single recovery may include all past and future damage.
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Permanent Damages

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"The lower courts awarded damages for the amounts incurred up to trial but denied an injunction, leaving the plaintiffs to maintain successive actions for damages as further harm occurred. The court at Special Term also found the amount of permanent damage attributable to each plaintiff, but the parties did not stipulate to payment and acceptance of that amount as a settlement. Following the established rule literally would have closed the plant at once. The court agreed that this immediately drastic remedy should be avoided and chose to grant an injunction conditioned on the payment of permanent damages to the plaintiffs. Granting an injunction subject to abatement within a short period would provide no assurance that technical improvements would occur, and a court might later face applications for extensions. By requiring payment of permanent damages, all economic loss to the plaintiffs’ properties, present and future, caused by the defendant’s operations would be redressed. The judgment would fully redress the particular parties while leaving public health and other public agencies free to seek proper relief. The risk that cement plant owners would be required to pay permanent damages could also encourage research into improved techniques to minimize the nuisance. Where a nuisance is permanent and unabatable, a single recovery may include the whole damage, past and future, resulting from it."

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