Nuisance

Question 1

Nuisance

Answer 1

“The fundamental thing that law does is to decide which of the conflicting parties will be entitled to prevail.”

Sic utere tuo at alienum non laedas: “every person should so use his own property as not to injure that of another

Question 2

Entitlement Types

Answer 2

Property
Liability
Inalienable

“An entitlement is protected by a property rule to the extent that someone who wishes to remove the entitlement from its holder must buy it from him in a voluntary transaction in which the value of the entitlement is agreed upon by the seller.”

Question 3

Property Rule

Answer 3

Potential high negotiation costs
-Hold-out problems
-Free-rider problems
-Opportunism
Collective valuation can be more efficient
-Value determined by the entitlement holder

Question 4

Liability Rule

Answer 4

“Whenever someone may destroy the initial entitlement if he is willing to pay an objectively determined value for it, an entitlement is protected by a liability rule.”
State determines entitlement and value
Entitlements collectively decided but state also intervenes to determine the value of the entitlement.
-Value determined by the state

Question 5

Inalienability Rules

Answer 5

Transfer not permitted between a willing buyer and a willing seller
State determines entitlement and forbids sale under some or all circumstances
May be viewed as limitation on the grant of entitlement itself
- Value such that value determinations and transfers not allowed

Question 6

Inalienability Justification

Answer 6

externalities if transactions occurred (efficiency)
self-paternalism (limiting our short term choices by for example requiring certain conditions before sale of entitlement allowed) for our own good
true-paternalism (limiting choices of others because other not believed capable of making best choice
distribution

Question 7

Coase Theorem

Answer 7

In a world of no transaction costs, Pareto optimality or economic efficiency will occur regardless of the initial entitlement.  
Requires:
-perfect knowledge, 
-no negotiation costs, and 
-no enforcement costs

Question 8

Nuisance Requires

Answer 8

Interference:
(1) that is substantial
And is either 
(2) intentional and unreasonable, or
(3) the unintentional result of negligent, reckless, or abnormally dangerous activity

Question 9

Trespass v. Nuisance

Answer 9

Trespass
Physical invasion by a tangible thing
But see, cattle ranch invaded by aluminum plant pollution.
Liability without regard to amount of harm or reasonableness

Nuisance
Non-trespassory interference with use and enjoyment
Liability subject to reasonableness inquiry
Solution: Cheshire, Ohio - company created a land mote.

Question 10

Support

Answer 10

Lateral Support (& Subjacent Support)
Vertical Support

Question 11

Lateral Support (& Subjacent Support)

Answer 11

Duty on neighboring land to provide the support that the subject parcel would need and receive under natural conditions; no right to support structures on the land.
What about if land supported until a big earthquake comes and because of the excavation the parcel collapses? Does it matter if earthquakes are frequent?
Liability falls on excavator, even if no longer land owner.
Liability is absolute, no need to show negligence.
If but for the improvements, no subsidence, no liability
Subsidence caused by withdrawal or release by excavation of fluids is not something excavator liable for.