TOYO TIRE NORTH AMERICA MANUFACTURING, INC. v. DAVIS et al.
S15G1804
Supreme Court of Georgia
JUNE 6, 2016
337 Ga. 155 | 787 SE2d 171
NAHMIAS, Justice.
Bryan Cave, Jennifer D. Odom, Ann W. Ferebee; Sutherland Asbill & Brennan, Katherine M. Smallwood; Shook, Hardy & Bacon, Leonard Searcy II, Victor E. Schwartz, Philip S. Goldberg, amici curiae.
First, we consider Toyo Tire‘s argument that the Davises presented insufficient evidence, at the summary judgment stage of the case, to show that the decrease in their property value was proximately caused by the alleged nuisance and trespass. Applying the standards used in reviewing summary judgment motions, we reject this argument. Second, we consider Toyo Tire‘s argument that even if the Davises can establish causation, they cannot recover damages both for their discomfort and annoyance and for the diminution in their property value, because that would constitute an impermissible double recovery. Following a long line of this Court‘s precedents as well as several cases from the Court of Appeals (except one case that we disapprove), we conclude that the past discomfort and annoyance caused by a continuing nuisance and the diminution in the property‘s market value resulting from the expectation of continuing discomfort and annoyance constitute two separate injuries, and the Davises, who both occupy and own the property, may potentially recover damages for both injuries. Accordingly, we affirm.
1. Since 1995, the Davises have resided in a house they now own located on four acres in an area zoned for low-density residential or agricultural use at the intersection of U. S. Highway 411 and Shinall Road in Bartow County. In 2004, the property across the highway from the Davises was re-zoned for heavy industrial use, and Toyo Tire began building a manufacturing and distribution facility
On October 25, 2007, the Davises sent a letter to Toyo Tire through their counsel, asserting that they planned to file a lawsuit for trespass, nuisance, and negligence, and requesting that Toyo Tire purchase their home (as it had done with the two properties next door to the Davises). Toyo Tire declined. On February 27, 2013, the Davises filed a complaint in Bartow County Superior Court alleging that the noise, lights, odors, black dust (alleged to be carbon black), and increased traffic from the facility, as well as its unsightliness, constitute a nuisance; they also alleged that the black dust emitted by the facility constitutes a trespass.1 The Davises requested damages for Toyo Tire‘s maintenance of a nuisance, damages in nuisance for the diminution in fair market value of their property, and damages for trespass.
During discovery, the Davises were deposed, and they explained how Toyo Tire‘s operations, including the loud noises, bright lights, odors, and black dust emissions from the facility, its equipment, and frequent truck deliveries, as well as the increased traffic from both trucks and employees, interfered with their use and enjoyment of the property and with their daily lives. They testified, for example, that their sleep is interrupted by the light and noise from the facility, and that they wear masks when they go outside and can no longer use their large yard for family gatherings because of the odors emitted from the facility, the danger from the increased traffic, and the carbon black that settles in their yard. Bruce Penn, a real estate appraisal expert hired by the Davises, was also deposed. He testified about appraisals done on their property, which indicated that its value without the Toyo Tire plant would be $280,000. He also testified about his depreciation analysis, which led him to conclude that the nuisance of the Toyo Tire facility had decreased the value of the Davises’ property by about 35 to 40%, with the black dust as a trespass decreasing the value by an additional 10 to 15%.
On May 23, 2014, Toyo Tire filed a motion for summary judgment, arguing, among other things, that the Davises failed to prove that the specific interferences they alleged had caused their property value to decrease and that, under Georgia law, the Davises cannot recover both for diminution of property value and for discomfort and annoyance caused by a nuisance. Toyo Tire did not argue that Penn‘s expert testimony was inadmissible or seek to exclude it under
Division 2 of the majority opinion held that the Davises had presented sufficient evidence that the alleged nuisance and trespass caused their property to depreciate to survive summary
We then granted Toyo Tire‘s petition for a writ of certiorari, directing the parties to address whether the Court of Appeals erred in concluding (1) that an issue of fact remained as to whether the alleged nuisance and trespass proximately caused the Davises’ property value to decrease and (2) that the Davises could potentially recover in nuisance both for diminution in their property value and for their personal discomfort and annoyance. As explained below, we answer both questions in the negative and affirm the Court of Appeals judgment.2
2. Toyo Tire first argues that the Davises have failed to present evidence sufficient to prove that the nuisance and trespass alleged caused a diminution in their property‘s value, because the Davises’ appraisal expert, Bruce Penn, did not consider the specific interferences alleged by the Davises but rather looked at depreciation caused by “industries” in general. “Causation is an essential element of nuisance, trespass, and negligence claims. To establish proximate cause, a plaintiff must show a legally attributable causal connection between the defendant‘s conduct and the alleged injury.” Toyo Tire, 333 Ga. App. at 216 (citing Alexander v. Hulsey Environmental Svcs., Inc., 306 Ga. App. 459, 462 (702 SE2d 435) (2010)).
In his deposition, Penn explained that he had over 30 years of experience as a real estate appraiser, had done several hundred appraisals in Bartow County, and was certified in the top tier of licensing for appraising in Georgia. He testified that in his expert opinion, the Toyo Tire facility and its black dust emissions caused the Davises’ property value to decrease by 50% — 35 to 40% due to the nuisance and 10 to 15% due to the black dust trespass. Penn arrived at this conclusion primarily by conducting a “paired sales” analysis, in which he compared the sales prices of three pairs of houses. One house in each pair was very close to an industrial facility in the vicinity of Bartow County, and the other was far away but still in the same general market area; the houses in each pair were otherwise similar. The three industrial facilities used were the Dobbins Air Reserve base, the Shaw plant, and the Budweiser plant. He based the additional decrease in value resulting from the black dust trespass on research he previously conducted to determine the decrease in the value of homes affected by concrete dust from a concrete recycling plant in west Atlanta. He also relied generally on other work he had done during his career examining the effects of industrial sites on residential property values.
The dissent in the Court of Appeals focused on several aspects of Penn‘s methodology that call into genuine question its validity and reliability, including Penn‘s admission that he “did not gather any evidence about the specific invasions involved here or conduct any analysis of whether the other industrial sites in his paired sales analysis involved similar situations.” Toyo Tire, 333 Ga. App. at 221 (Andrews, P. J., dissenting in part). It is appropriate to question why an expert of this type did not actually visit the industrial facilities and residential properties
As then-Judge Blackwell explained in An v. Active Pest Control South, Inc., 313 Ga. App. 110 (720 SE2d 222) (2011):
In some cases, we suppose, the admissibility or inadmissibility of evidence offered in support of, or in opposition to, a motion for summary judgment is so obvious that we properly can decide on appeal whether that evidence should have been considered, even without the court below having addressed it. But we must be cautious about deciding questions of admissibility — including questions of the admissibility of expert opinions — upon which a trial court has not ruled. After all, questions of admissibility generally are committed to the sound discretion of the trial courts, and questions of the admissibility of expert opinions . . . are no different.
Id. at 114-115 (citations omitted). Toyo Tire has not challenged the admissibility of Penn‘s expert testimony in the trial court, and that court therefore has not considered whether Penn‘s methodology meets the requirements for expert testimony laid out in
An appellate court should not conduct the analysis of Penn‘s methodology in the first instance. See An, 313 Ga. App. at 111 (“Whether the opinions of the experts are admissible . . . is something that must be determined in the first instance by the court below, exercising its discretion under [what is now
[W]hether ” ‘a witness is qualified to render an opinion as an expert is a legal determination for the trial court and will not be disturbed absent a manifest abuse of discretion.’ ” . . . In determining the admissibility of expert testimony, the trial court acts as a gatekeeper, assessing both the witness’ qualifications to testify in a particular area of
expertise and the relevancy and reliability of the proffered testimony. . . . There are many different kinds of experts and many different kinds of expertise, and it follows that the test of reliability is a flexible one, the specific factors “neither necessarily nor exclusively applying to all experts in every case.”
Id. at 642-643 (citations omitted).
Consequently, “we will consider only whether the record as we now find it — including the opinions of the expert[ ] — is enough to get [the Davises] past summary judgment.” An, 313 Ga. App. at 116. And because we are reviewing a motion for summary judgment, we must
construe the evidence most favorably towards the nonmoving party, who is given the benefit of all reasonable doubts and possible inferences. The party opposing summary judgment is not required to produce evidence demanding judgment for it, but is only required to present evidence that raises a genuine issue of material fact. Our review of the grant or denial of a motion for summary judgment is de novo.
Nguyen v. Southwestern Emergency Physicians, P.C., 298 Ga. 75, 82 (779 SE2d 334) (2015) (citation and punctuation omitted).
Toyo Tire maintains that even if Penn‘s testimony is admissible, the Davises have failed to show causation. We disagree. Although Penn acknowledged in his deposition that he had not visited the Davises’ property or considered separately each specific claim of interference the Davises have made, he also testified that he was made generally aware of the characteristics of the Toyo Tire facility, including its “round-the-clock shifts” and the “middle of the night traffic,” and interferences resulting from those characteristics, such as increased traffic, lights, noise, and emissions; he explained his belief that these are common byproducts of industry.4 Viewed in its full context and with the charity required in the summary judgment setting, Penn‘s conclusion was not that Toyo Tire‘s mere presence near the Davises’ property was a nuisance, but that the facility‘s
industrial operations (which he would expect to include things like odors, light, noise, and traffic) caused the value of the Davises’ adjacent property to diminish.5
The testimony from the Davises amply described the alleged nuisance and the specific interferences coming from it, so this is not a case where there is no evidence that the alleged nuisance has interfered with the plaintiffs’ property. Compare Lore v. Suwanee Creek Homeowners Assn., Inc., 305 Ga. App. 165, 172 (699 SE2d 332) (2010) (holding that the defendants were entitled to summary judgment when the plaintiffs presented
3. We turn now to the second question presented — whether allowing the Davises to seek to recover both for their discomfort and annoyance caused by the alleged nuisance and for the diminution in their property value would permit a double recovery.7
In Stanfield v. Waste Management of Ga., Inc., 287 Ga. App. 810 (652 SE2d 815) (2007), the Court of Appeals cited these two double recovery cases and declared: “The law is . . . clear that a plaintiff [in a nuisance action] may not recover for both discomfort and diminution of value.” Id. at 812. In this case, citing City of Atlanta v. Hofrichter/Stiakakis, 291 Ga. App. 883, 890 (663 SE2d 379) (2008), the Court of Appeals declared just the opposite: “It is well settled . . . that a plaintiff in an action for nuisance may recover for both damage to person and damage to property.” Toyo Tire, 333 Ga. App. at 219. Toyo Tire had cited and discussed Stanfield in its briefs, and the Court of Appeals
Nevertheless, as we will explain, Stanfield was a mistaken step off a long and firm path of Georgia law, and we disapprove it. Recovery for both past discomfort and annoyance and diminished property value has been consistently allowed by this Court and by the Court of Appeals in many cases for more than a century. See, e.g., Swift, 115 Ga. at 887 (explaining that the plaintiff could recover for all permanent injuries to his estate and for past discomfort and annoyance caused by the nuisance); City of Columbus v. Myszka, 246 Ga. 571, 573 (272 SE2d 302) (1980) (explaining that a nuisance plaintiff is not “limited to recovery of property damages alone” but rather “[u]nlawful interference with the right of the owner to enjoy possession of his property may be an element of damages“); Oglethorpe Power Corp. v. Estate of Forrister, 332 Ga. App. 693, 706-711 (774 SE2d 755) (2015) (explaining that discomfort and annoyance damages to an occupant are an element of nuisance damages distinct from damages to property interests); Weller v. Blake, 315 Ga. App. 214, 216-217 (726 SE2d 698) (2012) (“Damages for discomfort and annoyance are separate and distinct damages from any damage to realty.“).8
Stanfield failed to apprehend the crucial distinction between double recovery cases like Lusk and cases like this one. In the Lusk line of cases, both recoveries compensate the plaintiffs for essentially the same injury. In Lusk, for example, the money damages awarded to stabilize the riverbank would also reverse the diminution in property value due to that destabilization. See 277 Ga. at 246-247. Any loss in value the property suffered because of its unstable riverbank would be eliminated when the riverbank was made stable again. In this way, the unstable riverbank and the resulting loss in property value were really one injury, which should be addressed by one recovery. Similarly, in Swift, this Court explained that because the diminution in a property‘s rental value is a way to measure “the discomforts to which its use has been subjected” during that period, recovery for both would be double recovery for past damages. 115 Ga. at 888, 890. See also Towaliga Falls Power Co. v. Sims, 6 Ga. App. 749, 761 (65 SE 844) (1909) (explaining that the plaintiff could not recover damages both for the time he was prevented from working on his crop harvest due to nuisance-related illness and for the amount he had to pay replacement workers).
By contrast, the alleged discomfort and annoyance experienced by the Davises and the alleged diminution in their property‘s fair market value are two separate injuries that cannot be fixed by one recovery. Recovery for their discomfort and annoyance is designed to compensate them for what they have already experienced as residents of the property due to the Toyo Tire factory. Unlike the compensation that fixes the unstable riverbank once and for all, compensation for past discomfort and annoyance will not eliminate the discomfort and annoyance that will be experienced by future residents of the Davises’ property. That future discomfort and annoyance is reflected in the diminished fair market value of the property. This ongoing diminution in property value is therefore a second injury, which should be separately compensated (assuming it is proved at trial).
The distinction between these injuries may be more easily grasped where non-owner residents of the property suffer the discomfort and annoyance caused by a nuisance, and non-resident owners suffer the diminution in the value of their property. Both groups have been injured, and both can seek recovery under a theory of nuisance; when, as here, the residents and owners are the same, they can recover for both kinds of injuries. See Swift, 115 Ga. at 887 (“[T]he plaintiff, as owner of the premises described
The distinction between the two kinds of damages is also clear in the timing of the harms each is meant to address. “[T]he Davises’ allegations relate to invasions that are enduring in character and not readily alterable,” so they can (and did) elect to seek recovery for past and prospective damages in this action. See Toyo Tire, 333 Ga. App. at 214. See also Cox v. Cambridge Square Towne Houses, Inc., 239 Ga. 127, 129 (236 SE2d 73) (1977) (“Since it clearly appears that this situation ‘will continue indefinitely,’ the [plaintiff] has the right to elect to treat the nuisance as temporary and sue for all those damages which have occurred within the past four years, or he may elect to sue for all future damages as well and put an end to the matter.” (citation omitted)).9
The discomfort and annoyance damages would compensate the Davises for the interference with the use and enjoyment of their property that they have allegedly endured while living on the property. See Restatement (Second) of Torts § 929 (1) (c) (1979) (explaining that damages for harm to land resulting from a past invasion include “discomfort and annoyance to [the plaintiff] as an occupant“). See also Raymar, Inc. v. Peachtree Golf Club, Inc., 161 Ga. App. 336, 337 (287 SE2d 768) (1982); Towaliga Falls, 6 Ga. App. at 760 (“If the property is in the possession of a tenant, and the nuisance is of such a temporary nature as not to be likely to affect the premises after the expiration of the lease, the whole loss is to the tenant‘s leasehold interest, and not also to the landlord‘s reversion.“). The prospective damages available to the Davises as owners, on the other hand, are measured not through speculation about how much discomfort and annoyance they (or other occupants) may suffer in the future, but rather by how much the market value of their property has diminished based on the expectation of such continued discomfort and annoyance. See Restatement (Second) of Torts § 930 (3) (explaining that the prospective damages for continuing invasions include “either the decrease in the value of the land caused by the prospect of the continuance of the invasion . . . or the reasonable cost to the plaintiff of avoiding future invasions“). See also Cook v. Rockwell Intl. Corp., 358 FSupp.2d 1003, 1010 (D. Colo. 2004) (describing the prospective damages contemplated by this Court‘s decision in Cox as the decrease in the value of the property caused by the ongoing nuisance or trespass).
For these reasons, we adhere to the long line of Georgia precedent holding that recovery for both the backward-looking personal injury to the occupant and the forward-looking injury to the owner‘s property value
Judgment affirmed. All the Justices concur.
DECIDED JUNE 6, 2016.
Morris, Manning & Martin, Robert P. Alpert, Jeffrey K. Douglass; Archer & Lovell, David G. Archer, for appellant.
Akin & Tate, William M. Akin, S. Lester Tate III, for appellees.
Alston & Bird, Brian D. Boone, Kyle G. A. Wallace, amici curiae.
