Madison v. Ducktown Sulphur, Copper & Iron Co. 113 Tenn. 331, 83 S.W. 658 (1904)
Ducktown (and another company) began smelting copper from
a nearby mine.
Madison and other nearby landowner sued in three separate
trials for injunctions to stop the pollution from the smelter.
Madison et. al. charged Ducktown with being a private
nuisance.
Defined as 'Nontrespassory invasions of another's
interest in the private use and enjoyment of land'.
Requires a showing of significant harm.
Copper smelting involves burning a lot of sulfur, which
is stinky and kills plants.
The three Trial Courts all sided with Ducktown.
Under the common law (which was all that existed at the
time), Madison would have to prove that he suffered 'significant harm' in
order to establish a private nuisance claim.
Defined as 'Nontrespassory invasions of another's
interest in the private use and enjoyment of land'.
Requires a showing of significant harm.
The Trial Courts found that Ducktown's business was lawful,
and that burning sulfur was the only feasible way to smelt copper.
The Trial Court noted that there wasn't anyplace more
remote that Ducktown could move to.
If an injunction was granted, Ducktown's land would
become worthless.
The three Appellate Courts all reversed and issued
injunctions to stop the smelting. Ducktown appealed, and the cases were
consolidated on appeal.
The Tennessee Supreme Court reversed the Appellate Court
and denied the injunction.
The Tennessee Supreme Court found that somebody had to
lose, either Madison and the other farmers would be out of their land, or
the Ducktown mine would have to close.
The Court compared the value of Madison's land to
Ducktown and found that the loss to Madison was only a few thousand
dollars, but if the mine closed, it would cost millions and put lots of
people out of work.
Therefore, the Court found that in this case of
conflicting rights, the best the Court could do was to preserve the
largest measure of liberty possible under the circumstances.
The Court did allow Madison to collect damages for the
damage to his farm, they just wouldn't issue an injunction to shut down
the smelting operation.
A capitalist would say that this was the best
solution. If the damages caused by the smelter were greater than the
profit they were making, they would have to shut down.
The Court was reluctant to order the smelter to stop
operating because they didn't want to restrict how the mining company used
the land they owned. But just shutting down the smelter would not remove
all value from the land, they could have used the land for something else.
The Court did not specifically address how to calculate
damages. The damage from the smelter didn't just destroy one year's worth
of crops, it semi-permanently destroyed the land, resulting in loss of
crops for 50-100 years. So what would be a fair settlement?