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Spur Industries, Inc. v. Del E. Webb Development Co.

Citations: 494 P.2d 700; 108 Ariz. 178; 2 Envtl. L. Rep. (Envtl. Law Inst.) 20390; 53 A.L.R. 3d 861; 4 ERC (BNA) 1052; 1972 Ariz. LEXIS 274Docket: 10410

Court: Arizona Supreme Court; March 17, 1972; Arizona; State Supreme Court

Narrative Opinion Summary

In this case, the Supreme Court of Arizona addressed an appeal involving Spur Industries, Inc., a cattle feedlot operator, and Del E. Webb Development Company, a residential developer in Sun City. The primary legal issues were whether Spur's lawfully operating feedlot could be enjoined as a nuisance due to nearby residential development and whether the developer must indemnify the feedlot operator for business cessation. The area originally was agricultural, with Spur operating since 1956, while Del Webb began urban development in 1959. By 1963, the proximity of Spur's operations led to complaints about odors and flies, impacting Del Webb's sales. The court found Spur's feedlot constituted a public nuisance, justifying injunctive relief despite its lawful operation. The decision emphasized equitable considerations, noting that developers knowingly entering agricultural zones should expect existing businesses. Consequently, Del Webb was ordered to indemnify Spur for relocation costs due to the injunction. The judgment was affirmed in part, reversed in part, and remanded for assessing damages to Spur, with each party bearing its own costs.

Legal Issues Addressed

Equitable Relief and Coming to the Nuisance

Application: The court evaluated the equitable considerations in nuisance cases where a residential developer moves into an area already designated for agricultural use.

Reasoning: Courts of equity aim to protect lawful businesses from encroachments by others, particularly in 'coming to the nuisance' cases, where a residential landowner may not seek relief if they knowingly moved into an area designated for industrial or agricultural use.

Indemnification of Displaced Businesses

Application: Del Webb, as the developer, is required to indemnify Spur for ceasing operations due to the injunction, recognizing the developer's role in attracting residents to the area.

Reasoning: The court finds it reasonable to hold a developer accountable for indemnifying those displaced by its actions, particularly when it has attracted residents to an area, thereby necessitating the injunction against Spur's lawful operations.

Nuisance Law and Injunctions

Application: The court determined that Spur's cattle feedlot operations constituted a public nuisance affecting the residents of Sun City, thereby justifying injunctive relief.

Reasoning: The court noted that minor inconveniences typically warrant damages rather than injunctive relief. However, it concluded that Spur's operations constituted a public nuisance affecting residents in southern Sun City, allowing for injunctive action.

Public vs. Private Nuisance

Application: The court distinguished between private nuisances affecting individual rights and public nuisances impacting community rights, with Spur's operations deemed a public nuisance.

Reasoning: A private nuisance affects individual rights, while a public nuisance impacts community rights and must affect a significant number of people.