Owens v. CONTIGROUP COMPANIES, INC.

344 S.W.3d 717, 2011 Mo. App. LEXIS 410, 2011 WL 1118665
CourtMissouri Court of Appeals
DecidedMarch 29, 2011
DocketWD 72560
StatusPublished
Cited by7 cases

This text of 344 S.W.3d 717 (Owens v. CONTIGROUP COMPANIES, INC.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Owens v. CONTIGROUP COMPANIES, INC., 344 S.W.3d 717, 2011 Mo. App. LEXIS 410, 2011 WL 1118665 (Mo. Ct. App. 2011).

Opinion

GARY D. WITT, Judge.

ContiGroup Companies Inc., Premium Standard Farms, LLC, and KC2 Real Estate, LLC (collectively “PSF”), appeal following a jury trial on claims of temporary nuisance which resulted in a judgment for damages in favor of Respondents. We affirm.

Factual Background

PSF, operate large scale hog farms in, as pertinent to this appeal, three Missouri counties (Gentry, Daviess, and Grundy counties). The Respondents in this case are fifteen individuals 1 who filed suit against PSF claiming the hog farming operation in Gentry County constituted a temporary nuisance.

As originally filed, the Respondents were part of a larger class of sixty-one plaintiffs who sued PSF on August 5, 2002, in two actions. 2 These actions asserted a temporary nuisance related to the three hog farms operated by PSF in Gentry, Daviess, and Grundy Counties. On March 1, 2007, the Circuit Court granted PSF’s motion to sever the plaintiffs’ claims in the two actions, and consolidated the individual cases for discovery and trial by household.

On July 8, 2008, the Circuit Court modified its March 1, 2007 Order reconsolidat-ing the individual cases into three groups for trial based on proximity of the plaintiffs to each hog farming operation. Respondents’ claims here pertain to PSF’s hog farming operation in Gentry County for the years 1999 to 2010.

After a four week trial, the jury returned a verdict in favor of the Respondents. The jury awarded compensatory damages to thirteen of the Respondents in the amount of $825,000 each. In addition, Phyllis Owens received an award of $250,000 and Billie Sue Miller received an award of $75,000. The Circuit Court entered its Amended Judgment on March 22, 2010, which became final following the denial of PSF’s post-trial motions on May 24, 2010. PSF now appeals. Further details will be outlined as relevant in the analysis section herein.

Analysis

In Point One, PSF argues the Circuit Court erred in denying its motion for a directed verdict and for judgment notwithstanding the verdict with respect to all claims arising from Respondents’ farms because Respondents failed to make sub- *722 missible cases on the essential element of damages in that Respondents offered no evidence of any economic damages with respect to such business properties. The question presented then, is whether Missouri law allows a plaintiff to recover compensatory damages for the loss of the use or enjoyment of property that is not a residence but rather a “business.”

This is a purely legal question and, therefore, the standard of review is de novo. Townsend v. E. Chem. Waste Sys., 234 S.W.3d 452, 464 (Mo.App. W.D.2007).

At trial, Respondents proceeded exclusively on the theory that the temporary nuisance was detrimental to the use and enjoyment of their property (both residences and the surrounding farmland). Accordingly, they made no claim and presented no evidence as to any diminution in value of their property as a result of the nuisance created by the hog farm.

The measure of damages for a temporary nuisance is the decrease in the property’s rental value during the duration of the nuisance and incidents of damage, including, for example, loss of comfort and health. Peters v. ContiGroup, 292 S.W.3d 380, 385 (Mo.App. W.D.2009) (citing Vermillion v. Pioneer Gun Club, 918 S.W.2d 827, 831-32 (Mo.App. W.D.1996)). Compensatory damages can also be granted for inconvenience and discomfort caused by the nuisance. Brown v. Cedar Creek Rod & Gun Club, 298 S.W.3d 14, 21 (Mo.App. W.D.2009) (citing Moore v. Weeks, 85 S.W.3d 709, 716 (Mo.App. W.D.2002)). “In computing compensatory damages, there is no precise formula or bright line test to determine non-economic losses. Each case must be considered on its own facts, with the ultimate test being whether the award fairly and reasonably compensates the plaintiff for the injuries sustained.” Brown, 298 S.W.3d at 21 (citing Moore, 85 S.W.3d at 716).

PSF argues a rigid distinction exists between property used as a residence and land used for business purposes. Whereas one can recover damages in temporary nuisance arising out of a deprivation of the use and enjoyment of residential property, PSF argues that the only measure of damages available for a temporary nuisance to business property is the loss of value of that property and/or business during the period of the nuisance.

PSF cites to no Missouri cases that have held that the owner of a business cannot recover for the loss of the use or enjoyment of the property constituting that business. Rather, PSF cites tangential propositions that limit the damages that a business can recover for torts. See e.g., Restatement (Second) of Torts 561(a) cmt. B (1997). PSF also cites cases from other jurisdictions also limiting the types of harm a business can suffer from a tort. See e.g., FDIC v. Hulsey, 22 F.3d 1472, 1489 (10th Cir.1994). However, this authority does not answer the question posed here — whether an individual property owner can recover damages for the loss of use and enjoyment of the part of his property used for business purposes.

PSF argues that the Missouri Supreme Court’s case McCracken v. Swift & Co., recognized that the owner of a business affected by a nuisance may recover only the decrease in value of the business property. 265 S.W. 91, 91-92 (Mo.1924). However, that was not the holding of McCracken and it cannot be read to extend as far as PSF suggests. McCracken held that while a business owner can recover the loss of rental value of business property resulting from a temporary nuisance, one can recover as well for the loss of the use and enjoyment of one’s residence. Id.

Missouri cases consistently refer to plaintiffs being able to recover for the loss *723 and use of enjoyment of one’s “land” or “property.” See e.g., Basham v. City of Cuba, 257 S.W.3d 650, 653 (Mo.App. S.D.2008) (quoting Byrom v. Little Blue Valley Sewer Dist., 16 S.W.3d 573, 576 (Mo. banc 2000) (“Nuisance is the unreasonable, unusual, or unnatural use of one’s property so that it substantially impairs the right of another to peacefully enjoy his [or her] property. The focus is defendant’s unreasonable interference with the use of and enjoyment of [another’s] land”)); Moore v. Weeks, 85 S.W.3d 709, 716 (Mo.App. W.D.2002); Peters v. ContiGroup, 292 S.W.3d 380, 385 (Mo.App. W.D.2009).

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Bluebook (online)
344 S.W.3d 717, 2011 Mo. App. LEXIS 410, 2011 WL 1118665, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owens-v-contigroup-companies-inc-moctapp-2011.