McKiver v. Murphy-Brown LLC

Murphy-Brown LLC (Murphy-Brown) (defendant) operated a condensed animal feeding operation (CAFO) at its industrial-scale hog feeding farm at Kinlaw Farms in rural North Carolina. Murphy-Brown’s corporate policies implemented the farming practices used at the feeding farm. The practices included a lagoon-and-sprayfield system, waste and carcass management, and all-hours trucking. Studies were conducted that showed the negative impacts of these practices on the environment and the community. Murphy-Brown was aware of these studies and was also aware of community meetings that were held to address the harmful conditions caused by the farm. In 1997, the North Carolina Legislature outlawed new hog-waste lagoons because of their harmful effects. Despite having this knowledge and receiving numerous complaints, Murphy-Brown refused to implement new treatment technologies because they were more expensive than the current technology. More than 500 neighbors of the hog farm (the neighbors) (plaintiffs) brought suit in district court seeking relief under state nuisance law from odors, pests, and noises they attributed to Murphy-Brown’s farming practices at the feeding farm. A jury returned a verdict in favor of the neighbors with compensatory damages for each neighbor and $5 million in punitive damages. The punitive damages were capped to $2.5 million, pursuant to North Carolina’s punitive-damages cap. Murphy-Brown appealed the punitive damages.