ROBERT AND SUSAN FERGUSON, Plaintiffs-Respondents v. CITY OF SUNRISE BEACH, MISSOURI

CourtMissouri Court of Appeals
DecidedApril 1, 2025
DocketSD38532
StatusPublished

This text of ROBERT AND SUSAN FERGUSON, Plaintiffs-Respondents v. CITY OF SUNRISE BEACH, MISSOURI (ROBERT AND SUSAN FERGUSON, Plaintiffs-Respondents v. CITY OF SUNRISE BEACH, MISSOURI) 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
ROBERT AND SUSAN FERGUSON, Plaintiffs-Respondents v. CITY OF SUNRISE BEACH, MISSOURI, (Mo. Ct. App. 2025).

Opinion

Missouri Court of Appeals Southern District

In Division ROBERT AND SUSAN FERGUSON, ) et al., ) Plaintiffs-Respondents,) ) v. ) No. SD38532 ) CITY OF SUNRISE BEACH, MISSOURI, ) Filed: April 1, 2025 ) Defendant-Appellant. )

APPEAL FROM THE CIRCUIT COURT OF CAMDEN COUNTY

The Honorable Kenneth M. Hayden, Judge

VACATED AND REMANDED

The City of Sunrise Beach, Missouri (“the City”), appeals the judgment of the

Circuit Court of Camden County, Missouri (“trial court”), denying its Motion for

Judgment Notwithstanding the Verdict (“JNOV”) following a jury trial. In two points on

appeal, the City claims the trial court erred in denying JNOV on Plaintiffs Fergusons’,

McGinleys’, Lawheads’, Gebharts’, Seemayers’, Vander Wells’, and Aikeys’

(collectively, “Respondents”) nuisance claim (Point I) and negligence claim (Point II),

both alleging property damage only, because Respondents’ claims for loss of use and

enjoyment of real property against one having the power of eminent domain, here the

1 City, must be asserted through an action for inverse condemnation. We agree and vacate

the trial court’s Judgment.

Facts and Procedural History

Respondents are past and current owners of eight separate lots within Scram

Acres subdivision in the Village of Sunrise Beach. A creek runs through the Lawhead

property, and the other Respondents own properties that abut the cove at the Lake of the

Ozarks into which the creek empties. The creek begins by a wastewater facility, owned

and operated by the City. The Lawhead family has access to the cove through an

easement that runs along the creek. The other Respondents have access to a dock on the

lake, pursuant to permits.

The City took over management of the wastewater treatment facility from LO

Environmental (“LOE”) in 2016. 1 The City placed employee Brian Scheiter, the City’s

Director of Public Works, in charge of the treatment plant. Bypasses occurred at the

wastewater treatment facility during the period from 2016 through 2020 that should have

been reported, but were not. A “bypass” referred to a leak or failure of the system, and

bypasses were required to be reported to the State if they occurred.

Respondents originally filed suit against the City in March of 2020, with a Fourth

Amended Petition being filed December 30, 2022. Respondents claimed that the City’s

employees released improperly treated wastewater from the treatment plant.

Respondents asserted that the alleged release “onto the City’s land . . . created a

dangerous condition on the City’s land at its wastewater treatment plant.” They also

alleged that the “dangerous condition . . . at the City’s wastewater treatment plant caused

1 LOE settled the claims against it during trial.

2 untreated wastewater to migrate to the creek and cove near [Respondent]s’ properties”

and that the “improperly treated wastewater contained high levels of e-coli [sic] and other

contaminants harmful to human health that [have] negatively impacted [Respondent]s’

properties and [Respondent]s’ use and enjoyment of their properties.”

The City filed a Motion to Dismiss and a Motion for Complete Summary

Judgment, in which it claimed Respondents were required to bring their causes of action

through inverse condemnation. The trial court denied both motions.

Respondents proceeded to trial alleging two claims sounding in tort against the

City; Count I alleged liability for nuisance and Count II alleged liability for negligence

based on the same nuisance. Respondents claimed that micro-organisms (such as E. coli)

and metals (such as lead and arsenic) were spilled at and discharged from the wastewater

plant; that the micro-organisms and metals flowed from the wastewater plant onto the

Respondents’ properties and into the Lake of the Ozarks near their land; and that the

micro-organisms and metals adversely impacted their use and enjoyment of their

properties. The City moved for directed verdict on both counts at the close of

Respondents’ evidence, which the trial court overruled. The City again moved for

directed verdict at the close of all the evidence, and repeatedly argued that Respondents’

claims were required to be brought through claims for inverse condemnation.

During trial, an employee at the wastewater treatment facility between 2018 and

2019 (“Employee”), testified Mr. Scheiter was purposefully skipping vital purification

processes in order to “save money with the City” that “would equate to a raise.” Mr.

Scheiter passed along his inaccurate practices by training Employee to do water quality

tests that were supposed to be two-hour tests in only 45 minutes, and would reportedly

3 “ma[ke] up” sample measurements. Further, the facility’s charcoal filters, which were

used to purify the wastewater, were shut off 90% of the time he worked there, resulting in

sewage not being filtered.

The facility also contained two grinders to grind sludge produced at the facility;

Employee testified that during his employment, the grinders were never connected to

electricity and were not working. The lack of grinders resulted in the aeration basins

becoming over-saturated with sludge, which would then migrate to the UV tank and

prevent the UV lights from disinfecting the wastewater. The sludge would be pumped

out of the facility and eventually make its way into Respondents’ properties. In October

of 2019, Employee observed Mr. Scheiter pumping sewage into the UV trench and under

the facility’s fence, toward the creek. Employee realized the impropriety of Mr.

Scheiter’s actions after taking a training course, where the instructor told him that what

they were doing was illegal.

Employee discussed the illegality of the matter with Mr. Scheiter, to which Mr.

Scheiter responded “how would they know unless [Employee] ran [his] mouth?”

Employee raised the issue at a City Hall meeting in October of 2019, where he was told

that the City’s attorneys would “make[] these things go away” and that he needed to

follow Mr. Scheiter’s advice. Employee was fired after responding that the actions were

illegal.

Respondents continuously used the creek and cove during this time: Respondent

Melissa Lawhead testified that she wanted her kids to experience living and utilizing the

lake; Respondent Robert Ferguson described swimming with his children and

4 grandchildren around their dock; and Respondent Michael McGinley testified to his

children playing in the water during rainstorms.

Ms. Lawhead testified at trial that she first noticed issues in 2017, when she saw

trees dying by the creek. She testified that she informed Mr. Scheiter of the issue, and he

told her the trees were dying because they were “overloaded with water.” After this, she

noticed “[c]ertain smells throughout the summertime[,]” and had to keep her windows

closed because of the smell of sewage. The smell became so overwhelming in May of

2019 that Ms. Lawhead contacted the City. Mr. Scheiter told Ms. Lawhead that there

was an issue with a pump at the facility, but that it was promptly fixed and would not

happen again.

Ms. Lawhead testified that she had several follow-up conversations with Mr.

Scheiter about the color of the water, to which he responded that the water was safe

because it went through a UV light purifier. Ms. Lawhead called the Missouri

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ROBERT AND SUSAN FERGUSON, Plaintiffs-Respondents v. CITY OF SUNRISE BEACH, MISSOURI, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robert-and-susan-ferguson-plaintiffs-respondents-v-city-of-sunrise-beach-moctapp-2025.