Dalarna Farms v. Access Energy Corp.

792 N.W.2d 656 (2010)

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Dalarna Farms v. Access Energy Corp.

Iowa Supreme Court
792 N.W.2d 656 (2010)

  • Written by Liz Nakamura, JD

Facts

Dalarna Farms (Dalarna) (plaintiff) operated a dairy farm near Access Energy Corporation’s (AEC) (defendant) preexisting electrical utility system. Dalarna’s dairy herd experienced significant health problems because of stray voltage originating from AEC’s electric utility. Dalarna filed a nuisance action against AEC seeking compensation for past and future damages, including for the diminution in Dalarna’s property value. AEC filed a motion for an advisory ruling, arguing that Iowa’s comparative-fault statute should be interpreted to apply to all types of damages awarded to redress a preexisting permanent nuisance. Dalarna challenged, arguing that applying comparative-fault principles to reduce the damages awarded to compensate Dalarna for the diminution in Dalarna’s property value would violate the Takings Clause. The trial court held that, under Iowa law, comparative-fault principles could only be applied to reduce any future damages Dalarna was awarded in lieu of injunctive relief and that comparative-fault principles did not apply to damages awarded for diminution in property value. AEC filed an interlocutory appeal with the Iowa Supreme Court challenging the trial court’s interpretation of Iowa’s comparative-fault statute.

Rule of Law

Issue

Holding and Reasoning (Hecht, J.)

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