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40 U. Chi. L. Rev. 681 (1972-1973)
Alternatives to Zoning: Covenants, Nuisance Rules, and Fines As Land Use Controls

handle is hein.journals/uclr40 and id is 695 raw text is: The University of Chicago Law Review VOLUME 40 NUMBER 4 SUMMER 1973 Alternatives to Zoning: Covenants, Nuisance Rules, and Fines as Land Use Controls* Robert C. Ellicksont I. EXTERNALITIES AND SYSTEMS FOR THEIR INTERNALIZATION ...................... 683 II. CRITERIA FOR EVALUATING LAND USE CONTROL SYSTEMS ........................ 687 III. AN EVALUATION OF ZONING ................................................. 691 A. Zoning and Efficiency ................................................. 693 B. Zoning and Equity ................................................... 699 C. Reforming Zoning .................................................... 705 IV. COVENANTS, MERGER, AND OTHER CONSENSUAL SYSTEMS OF LAND USE REGULATION 711 V. ASSIGNING RIGHTS AMONG LANDOWNERS: A REFORMULATION OF NUISANCE LAw .. 719 A. Existing Nuisance Law as a Land Use Control System ................... 719 B. Nuisance Law: The Prima Facie Case .................................. 722 1. Assigning Rights to Promote Efficiency: A Preliminary General Rule .. 724 2. Toward a Tripartite System of Internalization: The Unneighborliness Requirem ent ...................................................... 728 3. Compensable Damage: The Problem of Aesthetics ................... 733 4. Measuring Damage: Bonuses for Consumer Surplus .................. 735 5. The Requirement of Substantial Harm .......... 737 6. Remedies: The Plaintiff's Choice between Damages and Purchasing an Injunction ......................................................... 738 C. Nuisance Law: Defenses ............................................... 748 1. The Defense of Freedom of Expression .............................. 748 2. The Defense of Equality of Opportunity ............................ 750 3. The Defense of Hypersensitivity .................................... 751 4. The Defense of Failure to Mitigate Damages ........................ 758 VI. A TENTATIVE SKETCH OF A MORE PRIVATIZED SYSTEM OF LAND USE REGULATION 761 A. The Superiority of Nuisance Law for Localized Harm .................. 762 B. The Necessity of More Collective Internalization Systems for Pervasive H arm ................................................................ 772 VII. CONCLUSION ...................... ............ 779 0 I am indebted to Bruce L. Ackerman, Alan Axelrod, Scott Bice, Richard Epstein, George Lefcoe, Michael Levine, Richard Posner, and Michael Shapiro for helpful com- ments on early drafts of this article. t Associate Professor of Law, University of Southern California.

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