Spur Industries V. Del E. Webb Development Co., Case Study Example

Issues

The issue in this case is whether a lawfully conducted business can become a nuisance due to the growth of an enjoining residential area that is developed subsequent to the establishment of the business. Further, if a nuisance is indeed found whether the land developer can be liable to the established business. In the case the developer built a residential community adjacent to an existing cattle farm and later argued that the defendant’s farm constituted a nuisance.

Ruling

The Court ruled that the defendant’s operation of the farm was indeed a nuisance and enjoined its further operation. The Plaintiff developer, however, must indemnify the farm owner for moving or shutting down due to the fact that he developed the property with full knowledge that there was previous agricultural activity in the area.

Application

The importance of this case lies in the fact that the developer by placing the residential community in a previous agricultural and/or industrial area. It was foreseeable that by developing the adjacent property for residential use that the farm would eventually become a nuisance. It would not fair for the farmer to be made to suffer because of the developer’s actions and, therefore, the developer must indemnify the farmer for the reasonable cost of either removing or shutting down his farm.

Conclusion

This case serves as a warning to aggressive land developers that they must be careful where they place their purposed communities. Having adjoining properties declared as a nuisance might be possible but it does not relieve the developer of financial responsibility to the property owner.