Business And Its Legal Environment (Mgmt 246)

1
Business And Its Legal Environment (Mgmt 246)

• Professor Charles H. Smith
• Environmental Law (Chapter 24)
• Spring 2010

2
Types of Pollution

• Air pollution mobile and stationary sources
  expel pollutants into the air, making breathing,
  sight and even life difficult e.g., motor
  vehicles, factories.
• Water pollution industrial, governmental and
  agricultural sources e.g., organic waste, soil
  runoff, heated water, nutrients such as
  detergents, fertilizers and human/animal waste,
  toxic and other hazardous materials.
• Noise pollution loud and otherwise annoying
  noise e.g., party music, motor vehicles,
  manufacturing, barking dog.
• Soil pollution/contamination e.g., toxic and
  other hazardous materials such as petroleum
  products.
• All types of pollution regulated by federal,
  state and/or local statutes, which can lead to
  anti-business accusations against city, county,
  state or country.

3
Nuisance

• Nuisance occurs when landowner uses property in
  manner that unreasonably interferes with others
  rights to use or enjoy their own property.
• Court may balance plaintiffs harm caused by
  interference with property rights with harm to
  defendant and the community if required to stop
  activity causing the nuisance in order to decide
  whether the activity is wrongful e.g., interests
  of residents who live near airport to be
  protected from noise and other pollution vs.
  benefits gained from airport.
• Private nuisance when plaintiff suffers
  distinct harm that is unique to plaintiff or
  separate from harm affecting others.
• Public nuisance when multiple victims suffer
  same or similar harm due to nuisance.

4
Nuisance cont.

• Nuisance is a common law theory but now most
  commonly shown by violation of statute examples
  include
• Business violation of federal and state
  regulations as to waste disposal and storage.
• Neighbors barking dog which is regulated by city
  ordinance.
• Landscaping or loud music violates city ordinance
  as to volume and/or time.
• Student examples.

5
Nuisance cont.

• Zoning laws are relevant in determining whether a
  nuisance has occurred.
• Zoning laws designate the permitted use(s) for
  land e.g., single family or multi-unit
  residence, commercial, industrial, etc.
• Use of land in compliance with zoning laws can
  eliminate any claim of nuisance.

6
Remedies in Nuisance Cases

• Legal and equitable remedies are available in
  nuisance cases
• Damages for harm caused in the past (though
  financial loss may occur in the past, in the
  future, or both)
• Special damages.
• General damages.
• Punitive damages.
• Injunction to prevent more of the same harm in
  the future.
• Plaintiff may be entitled to damages, an
  injunction, or both depending on the
  circumstances.

7
Nuisance Case Study

• ABC Factory in Podunk, Arkansas disposes of toxic
  waste in violation of federal law as a result,
  nearby residents get serious rash.
• Has there been a nuisance?
• What remedy(ies) are available to those who get
  rash because of this illegal disposal?
• What nuisance theory(ies) apply to this
  situation?
• Should the remedies be different if this illegal
  disposal was (1) intentional or (2) an accident?
• If ABC Factory employs 75 of the residents of
  Podunk, Arkansas, how should the court balance
  the harm to the nearby residents against the harm
  that could be caused by penalizing ABC Factory?
• Would it matter if the land occupied by ABC
  Factory is zoned industrial (or not zoned at
  all)?