Escobar v. Continental Baking Co.

In 1926, Continental Baking Co. (Continental) (defendant) acquired a building for use as a bakery and related distribution facility. Continental continuously used the building for bakery-related purposes. Since at least 1963, Continental received late-night and early-morning deliveries of bakery products as part of its business activities. The deliveries, which involved trucks and trailers, generated a considerable amount of noise. The surrounding neighborhood was mostly commercial and included a large commercial laundry, railroad tracks, a major highway, and an all-night gasoline station. In 1977, Jose and Deolinda Escobar (plaintiffs) purchased a house on property adjacent to the bakery, knowing that the property next door was used as a bakery. The Escobars’ purchase price of $35,000 reflected the property’s location next to Continental. Jose ran a construction business from his property, where he stored trucks and materials. The Escobars’ sleep was disturbed by Continental’s early-morning deliveries. Continental distributed millions of dollars in bakery products every year and employed 38 people; the early-morning deliveries ensured the freshness of Continental’s baked goods. The Escobars sued Continental to enjoin the deliveries, claiming nuisance. Following a trial, the court denied injunctive relief, finding that on balance, Continental’s use of its property was socially beneficial and outweighed the harm to the Escobars. However, the court awarded $36,000 in damages to the Escobars for the “nuisance [that] has affected their sleep.” Continental appealed, arguing that the Escobars were not entitled to damages.