2012

Campbell County v. Royal

Supreme Court of Virginia

283 Va. 4, 720 S.E.2d 90

The Royals owned and operated a manufactured home community with 218 residential lots, and with its southern border adjacent to the Campbell County Sanitary Landfill. Groundwater contamination occurred when landfill gas and leachate migrated into the Royals’ property. They brought an action alleging a discharge of oil in violation of Va. Code § 62.1-44.34:18 of the Oil Discharge Law, and damage to property without just compensation under Article I, § 11 of the Constitution of Virginia. Trial court granted summary judgment on both grounds and set the matter for a jury trial on damages. The jury returned a verdict for the Royals for $9,000,000. Supreme Court reversed with final judgment. The Oil Discharge Law does not apply to the contamination of groundwater by passive, gradual seepage of the landfill gas and leachate. Further, the jury was not instructed on the proper measure of damages for inverse condemnation, that being the diminution in value by reason of the change, or the difference in value before and after the change. As a result of the Royals only offering instruction on the Oil Discharge Law claim, they abandoned the inverse condemnation claim at trial, and there was no basis to retain the jury’s award of damages.

Dissent by Justices Powell and Lemons which argued that the statute applied to the contamination in this case, and that the County should be held responsible.

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