A bill in the Oklahoma legislature would limit damages in nuisance lawsuits against farms and ranches.
House Bill 2373 caps punitive damages in those cases at $250,000 or three times actual damages, whichever is greater. Sen. Julie Daniels said in North Carolina, lawsuits involving 300 plaintiffs led to actual damages ranging from $102,000 to $23.5 million but punitive damages of $25 million to $450 million, jeopardizing some small farms.
"Because the larger firm or operation that provides the animals can no longer afford to do business, and so you lose these agricultural operations in your state. And, yes, we are trying to do this as a way to prevent that from happening in Oklahoma," Daniels said.
The plaintiff in the North Carolina lawsuits, Smithfield Foods subsidiary Murphy-Brown, has not paid those amounts. North Carolina has a cap on punitive damages similar to what Oklahoma is considering.
Sen. Ron Sharp said city dwellers moving to the country may not realize what’s normal in agricultural operations, prompting lawsuits over odor, noise or dust that's typical.
"I think that this issue here is clearly an urban versus rural issue where we must have certain realities that our food supply must come from our farmers. We thank our farmers each day when we pray," Sharp said.
Sen. Michael Brooks voted against HB2373 in committee Tuesday.
"If we were wanting to do something to perhaps limit the causes of action for existing and open nuisances, that would make sense. But to limit the discretion of the jury and to take power away from the courts, at this point, in my opinion, doesn’t make sense," Brooks said.
State law already protects many existing farms from nuisance actions if they are following state law.
