Reynolds Metals Company, and Cross-Appellees v. Julius Lampert and Evelyn Lampert, and Cross-Appellants

Appellant Reynolds Metals Company operates an aluminum reduction plant near Troutdale, Multnomah County, Oregon. Appellant Henry W. Shoemaker was plant manager at the time of the commencement of the action.

Appellees Julius and Evelyn Lampert own certain real property near Troutdale which they used for growing crops, including gladiolus bulbs, bulblets and flowers.

On June 30, 1959, appellees commenced an action in the Circuit Court of the State of Oregon for the County of Multnomah, alleging that their real property had been invaded by gases, fumes and particulates (commonly referred to as fluorides) emanating from appellants’ plant and seeking, for the years 1957, 1958 and 1959, the following damages:

1. $3,191.31 as the cost of obtaining substitute real property for growing bulbs (including rent, cost of fertilizer and the cost of travel between the rented property and appellees’ own property).

2. $12,500 for being deprived of the use and enjoyment of their real property.

3. $3,020 for damage to gladiolus bulbs.

4. $1,650 for damage to gladiolus blooms.

5. $500,000 in punitive damages.

' Appellants removed the action to the District Court on the basis of diversity of…