Boomer v. Atlantic Cement Co.
Citation: 26 N.Y.2d 219 (N.Y. 1970)
Facts
Atlantic Cement operated a large cement plant near Albany, New York. Neighboring landowners brought a nuisance action, demonstrating that the plant’s dirt, smoke, and vibration substantially interfered with their use and enjoyment of their property. The trial court found a nuisance but declined to issue an injunction given the plant’s economic importance and the disparity between the plant’s value ($45 million investment, 300 employees) and the plaintiffs’ damages.
Issue
When a private nuisance is established, is an injunction the mandatory remedy, or may a court award permanent damages and allow the nuisance to continue?
Holding
The New York Court of Appeals affirmed the denial of an injunction and directed the grant of permanent damages to the plaintiffs as an alternative remedy. The court declined to shut down a major industrial operation when the injury to plaintiffs was markedly disproportionate to the economic harm that an injunction would cause.
Rule
Courts have equitable discretion to award permanent damages in lieu of an injunction when: (1) the economic disparity between the harm and the cost of abatement is great, and (2) the social utility of the activity is high. Permanent damages effectively license the nuisance going forward.
Significance
Boomer is the canonical case for the choice between injunctive relief and damages as nuisance remedies. It raises fundamental questions about the Coase Theorem — whether parties can bargain to efficient outcomes — and about when courts should substitute damages for property rules. Boomer is also critiqued for effectively requiring plaintiffs to sell their right to be free of nuisance at a court-determined price.