## Facts

- Redwood Sanitary Sewer Service District (District) operated a sewage treatment plant in rural Josephine County, Oregon.
- The treatment process produced sludge (biosolids). Before 1988, the District disposed of sludge by trucking it to sites for land application.
- In 1988, the District began a small pilot composting operation at the plant. In July 1990, it began composting on a permanent basis.
- In the initial composting stage, sludge was poured into outdoor “drying rings” exposed to open air for about two weeks to reduce moisture.
- The dried biosolids were mixed with organic material (including wood, animal bedding and waste, and yard waste) to create compost piles that required exposure to air.
- The Penlands and other nearby homeowners lived near the facility and began experiencing recurring offensive odors, along with noise and dust that they attributed to the composting activity.
- Several residents reported the odor was so strong that they could not garden, eat outdoors, or keep windows open during summer evenings; the odor reached their homes at least several times a week.
- The homeowners complained to the District in February 1992. The District implemented some measures intended to reduce impacts, but the homeowners considered the problem unresolved.
- In August 1994, the homeowners sued seeking only a permanent injunction to stop the composting operations, alleging the operations constituted a nuisance.
- The Josephine County Circuit Court rejected the District’s Oregon Tort Claims Act (OTCA) discretionary-function defense, found a nuisance, and issued a permanent injunction against composting.
- In an earlier appeal, the Court of Appeals reversed based on OTCA discretionary-function immunity. The Oregon Supreme Court reversed that immunity ruling and remanded to the Court of Appeals to decide the remaining questions: nuisance and equitable relief.
- This opinion is the Court of Appeals’ decision on remand, reviewing the record de novo.

## Issues

1. Whether the District’s composting operation constituted a private nuisance by substantially and unreasonably interfering with neighboring landowners’ use and enjoyment of their properties.
2. If a nuisance existed, whether the balance of equities supported a permanent injunction shutting down the composting operation.

## Decision

- The Oregon Court of Appeals held, on de novo review, that the District’s composting operation constituted a nuisance due to recurring, severe odors (and related impacts) that substantially and unreasonably interfered with plaintiffs’ use and enjoyment of their homes.
- The court held that the balance of equities favored the homeowners, because the harm to plaintiffs from continued operation outweighed the District’s asserted costs and benefits of continuing composting at that location.
- The Court of Appeals affirmed the circuit court’s judgment issuing a permanent injunction against the District’s composting operations.

## Legal Principles

- A private nuisance exists when a defendant’s conduct results in a substantial and unreasonable interference with another’s use and enjoyment of land; persistent, offensive odors can satisfy that standard.
- The existence of a public purpose or public benefit associated with an activity does not, by itself, prevent the activity from constituting a nuisance to neighboring landowners.
- Even after finding a nuisance, a court deciding whether to grant permanent injunctive relief must weigh the equities, including the hardship of an injunction on the defendant and the public and the ongoing harm to the plaintiffs if the nuisance continues.
- Where the burden of a public program would fall disproportionately on a small group of neighboring residents through repeated invasions of their living environment, equity may favor stopping the activity rather than requiring those residents to bear the costs of the public benefit.
- In this litigation, the Oregon Supreme Court had already resolved that OTCA discretionary-function immunity addresses liability for damages and does not bar a suit seeking only injunctive relief; on remand, the Court of Appeals decided nuisance and equitable relief on the merits.

## Conclusion

Penland v. Redwood Sanitary Sewer Service District (156 Or. App. 311) is the Oregon Court of Appeals’ decision on remand holding that the District’s sewage-sludge composting operation created a private nuisance because its frequent, intense odors (with accompanying dust and noise) substantially and unreasonably interfered with nearby homeowners’ enjoyment of their properties, and that the equities favored a permanent injunction shutting down composting at the facility despite the District’s asserted public benefits and operational costs.


Penland v. Redwood Sanitary Sewer Service District, 156 Or.App. 311, 965 P.2d 433 (1998)