## Facts

- A dairy farm in New London, Iowa experienced serious herd health problems, low milk production, and high death rates beginning during prior ownership and continuing after Dalarna Farms took over operations in 2003.
- Dalarna concluded the herd problems were caused by “stray voltage” originating from an electric utility’s distribution system operated by Access Energy Cooperative.
- Dalarna sued Access Energy in nuisance, seeking (1) money damages for past and present harm (including diminution in property value and production losses) and (2) injunctive relief to abate the stray voltage.
- Access Energy sought a ruling that Iowa’s comparative-fault scheme applies to Dalarna’s nuisance damages claim under Iowa Code § 657.1(2) (2007), commonly described as an electric-utility defense.
- The district court limited the comparative-fault defense to future damages awarded in lieu of an injunction and excluded past/present damages and diminution-in-value damages from comparative-fault reduction.
- Access Energy obtained interlocutory review.

## Issues

1. Whether Iowa Code § 657.1(2) permits an electric utility to assert comparative fault in any nuisance action seeking damages against the utility, or only for certain categories of damages (e.g., future damages in lieu of injunctive relief).
2. Whether applying comparative fault under § 657.1(2) to reduce damages for diminution in property value violates the federal or state Takings Clause.

## Decision

- The Iowa Supreme Court reversed and remanded.
- The court held § 657.1(2) makes the comparative-fault defense available in any nuisance action seeking damages against an electric utility.
- The court held applying comparative fault to reduce nuisance damages, including diminution in property value, does not constitute an unconstitutional taking.

## Legal Principles

- Under Iowa Code § 657.1(2), an electric utility sued in nuisance for damages may invoke comparative-fault principles (as incorporated from Iowa’s comparative-fault framework) without limiting the defense to particular damage categories.
- Statutory text using broad terms such as “any” nuisance action seeking damages is construed to cover all damage components pleaded in such an action unless the statute provides a clear limitation.
- Legislatively defined comparative-fault allocations operate within tort remedies and do not, by themselves, transform a private nuisance dispute into a compensable taking.

## Conclusion

The court interpreted Iowa Code § 657.1(2) to allow electric utilities to assert comparative fault across all nuisance damages claims, including property-value diminution, and rejected the argument that such fault-based damage reduction violates the Takings Clause.


Dalarna Farms v. Access Energy Coop., 792 N.W.2d 656 (Iowa 2010)