Houston Unlimited, Inc. Metal Processing v. Mel Acres Ranch

The question presented to the Supreme Court in this case was whether Texas recognizes a legal right to stigma damages, which represent damage to the reputation of realty. Plaintiff, a ranch owner, sued Defendant, the owner of a metal processing facility, for nuisance, trespass and damages after the Commission found that Defendant had committed an unauthorized discharge of industrial hazardous waste that had affected Plaintiff’s property. As to damages, Plaintiff sought only a loss of the fair market value of the ranch and relied on an expert witness who testified that, in her opinion, the ranch had suffered a loss of market value due to stigma resulting from fear, risk, and negative public perceptions. A jury found that Defendant was negligent and that negligence caused the property to lose $349,312 of its market value. The trial court entered judgment on the verdict, and the court of appeals affirmed. The Supreme Court reversed, holding that even if Texas law permits recovery of stigma damages, Plaintiff’s evidence was legally insufficient to prove them. View "Houston Unlimited, Inc. Metal Processing v. Mel Acres Ranch" on Justia Law