Matthew and Tracey Winther own residential property in Hoover, Alabama, situated in a ravine at a lower elevation than a large mixed-use development called The Preserve, which is being constructed by United States Steel Corporation. The Winthers sued U.S. Steel, alleging that the developer's activities, including deforestation and drainage modifications, interfered with the natural flow of surface water, causing increased erosion, sediment, rock, and debris to enter their property. After a jury trial, the jury found in favor of the Winthers on claims of channeling, nuisance, and trespass, awarding them $235,150 in compensatory damages. However, the district court granted U.S. Steel's motion for judgment as a matter of law on the claims of wantonness and punitive damages, ruling there was no evidence of reckless disregard. The Winthers appealed this ruling and the denial of their motion for a new trial, while U.S. Steel cross-appealed, arguing that the Winthers failed to prove causation without expert testimony.
The Eleventh Circuit applied Alabama law to define wantonness as conduct carried on with a reckless or conscious disregard of the rights or safety of others, requiring knowledge that the action would cause injury. The court disagreed with the district court's conclusion that U.S. Steel's actions did not meet this standard. While the court acknowledged that U.S. Steel took some steps to reroute water after initial complaints, it found that a reasonable jury could conclude that over the long period leading up to trial, U.S. Steel had sufficient knowledge that its activities were causing harm. The record showed that U.S. Steel's engineers observed the erosion and that the company continued to discharge sediment and debris without implementing reasonable measures to control them, particularly after a 2021 storm event that carried construction fill off-site. Regarding the cross-appeal on causation, the court held that expert testimony was not required because the causal link between the development and the damage was within the realm of ordinary juror experience. The jury could infer from the evidence that the deforestation and channeling of water caused the erosion and debris deposition without needing scientific or technical experts to explain the mechanics. Finally, the court found the district court erred in excluding evidence of prior administrative violations under Rule 408, as the evidence was admissible to prove U.S. Steel's knowledge of the problem, not to prove liability for the prior settlements.
The case is remanded to the district court for further proceedings to determine damages, including the potential award of punitive damages. The ruling clarifies that in surface water drainage cases involving visible erosion and debris, plaintiffs may not need to present expert testimony to establish causation if the facts are within common knowledge. It also signals that evidence of prior regulatory violations may be admissible to prove a defendant's knowledge of a problem, provided it is not offered solely to prove liability for the prior acts.
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