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Torts - Cases, Principles, and Institutions Fifth Edition, 2016a

Torts - Cases, Principles, and Institutions Fifth Edition, 2016a

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Witt & Tani, TCPI 9. Liability without Fault?<br />

market of entitlements to their highest value users. The court’s injunction cuts through the failure<br />

of the market <strong>and</strong> imposes the socially optimal outcome.<br />

Or, at least what it hopes is the socially optimal outcome. Note that the existence of the<br />

collective action problem means that the court had better be right in its judgment of what the right<br />

outcome is. Once the entitlement is allocated to the neighbors, the owner of 13949 Dacosta is<br />

unlikely to be able to buy it back, even if for some reason she values being a kennel owner in that<br />

lot more highly than her neighbors value being free from the noise <strong>and</strong> smells <strong>and</strong> inconveniences.<br />

The problem is the flip side of the same collective action problem that would have hindered the<br />

neighbors from buying the right to run the kennel from her in the first place. If each neighbor<br />

retains the right to enjoin her from running the kennel, she will have to acquire the right to run the<br />

kennel from all the neighbors. But each neighbor will have a powerful incentive to hold out <strong>and</strong><br />

become the last obstacle to the kennel. The last hold out is in a powerful position to extract<br />

virtually all the value of the project as a condition to his or her permission.<br />

Collective action problems here mean that a mistake by the court will not likely be<br />

remedied by the marketplace.<br />

2. Coming to the nuisance. In nuisance cases, courts give priority in time significant weight.<br />

For example, defendants who “move[] hog production to an established residential neighborhood”<br />

are unlikely to escape liability. Similarly, a plaintiff who moves into “a neighborhood of small<br />

factories” is unlikely to bring a successful nuisance claim. DOBBS, HAYDEN & BUBLICK, DOBBS’<br />

LAW OF TORTS § 401 (2014). Priority in time, however, is not dispositive in nuisance cases. See<br />

RESTATEMENT (SECOND) OF TORTS § 840D (1979) (“The fact that the plaintiff has acquired or<br />

improved his l<strong>and</strong> after a nuisance interfering with it has come into existence is not in itself<br />

sufficient to bar his action, but it is a factor to be considered in determining whether the nuisance<br />

is actionable.”). As Ensign v. Walls illustrates, plaintiffs in nuisance cases may still recover if<br />

they come to the nuisance (i.e., they move or acquire l<strong>and</strong> after the alleged nuisance has come into<br />

existence).<br />

According to Professor Robert Ellickson, a majority of jurisdictions may award plaintiffs<br />

damages or injunctive relief even though plaintiffs came to the nuisance. Ellickson observes that<br />

remedies in such cases may be inappropriate where plaintiffs who build residences in close<br />

proximity to a factory or feedlot have thereby “failed to mitigate damages.” On the other h<strong>and</strong>,<br />

the rationale for remedies is that the existence of a first in time rule creates a race to develop lest<br />

the use of Parcel A preclude certain uses of neighboring Parcel B. See Robert C. Ellickson,<br />

Alternatives to Zoning: Covenants, Nuisance Rules, <strong>and</strong> Fines as L<strong>and</strong> Use Controls, 40 U. CHI.<br />

L. REV. 681, 759 (1973).<br />

3. Social policy in a decentralized regime. Subsequent events suggest that the court’s<br />

solution in Ensign was tragically but unforeseeably short-sighted. Not long after Ensign was<br />

decided, Congress authorized funds to build an interstate highway near Dacosta Street. See<br />

Federal-Aid Highway Act of 1956, 23 U.S.C. 48 (2012). Look back at the Google Maps image<br />

you visited above. The interstate that resulted, known as I-96, passes within 200 feet of 13949<br />

Dacosta Street. The noise <strong>and</strong> smell from the kennel would soon have been completely<br />

overwhelmed by the noises <strong>and</strong> smells of massive eighteen-wheel trucks carrying the products of<br />

industrial Detroit to the great American post war markets.<br />

508

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