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Sewage on the association's land: a Missouri court said only one kind of lawsuit was available

Sewage on the association's land: a Missouri court said only one kind of lawsuit was available
Missouri · Courts

Sewage on the association's land: a Missouri court said only one kind of lawsuit was available

What happened. A condominium owners association sued a Missouri city over a sewer line the city had run beneath the association's land without an easement, which ruptured and spilled sewage across the property. The association pleaded negligence, nuisance, trespass and ejectment. On 25 September 2025 the Missouri Court of Appeals, Southern District, held that none of those theories was available — inverse condemnation is the only remedy — and made a writ of prohibition permanent as modified.1

The case is State of Missouri ex rel. City of Osage Beach v. The Honorable Aaron G. Koeppen, No. SD38855, an original proceeding in prohibition. The real party in interest is Grand Harbour Condominium Owners Association, Inc. Chief Judge Jennifer R. Growcock wrote; Judges Don E. Burrell and Jack A. L. Goodman concurred.

The facts

Grand Harbour owns Lot 1 of Malibu Place in Camden County. The City of Osage Beach had laid a sewer line beneath that land without an easement. In April 2021 the line ruptured and sewage escaped onto the association's property. The association filed two counts of negligence plus nuisance, trespass and ejectment.

The holding

Because the city is an entity holding the power of eminent domain, the court held that the pleaded theories did not state a viable claim and the city was entitled to dismissal as a matter of law. The rule, as the opinion states it:

“Inverse condemnation is the exclusive and proper remedy for an alleged nuisance or other damage caused to private property by an entity having the power of eminent domain.”

“When private property is damaged by a nuisance operated by an entity having the power of eminent domain, the proper remedy is an action in inverse condemnation.”

The court enforced that rule by prohibition rather than waiting for a final judgment, on the principle that “prohibition will lie if plaintiff's petition does not state a viable theory of recovery, and relator was entitled to be dismissed from the suit as a matter of law.”

What the court left open

The disposition was not a dismissal of the association's grievance. The writ directs the circuit court to grant the city's motion for judgment on the pleadings or to allow the association leave to amend. The association's route is to plead inverse condemnation; the claim was channelled, not extinguished.

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Why this is an association-law case and not a municipal-law case

The subject matter looks like utilities. The consequence is about the association's capacity to protect its own land, and it is a trap that is easy to walk into.

A Missouri association that discovers damage to common property does what any landowner does: it instructs counsel, who pleads the obvious torts. Negligence is the natural first count. Trespass fits an unpermitted line under your soil. Nuisance fits sewage. Ejectment fits an occupier with no easement. All four were pleaded here, and all four were held unavailable — not because the facts were weak, but because of who the defendant was.

The filter is the defendant's power, not the defendant's conduct. If the entity that damaged the common property holds the power of eminent domain — a city, a county, a sewer district, a utility with condemnation authority, a public water supply district — Missouri routes the claim into inverse condemnation and closes the tort doors.

What that means operationally

  1. Establish the defendant's condemnation power first, before the pleading is drafted. It is the question that decides which cause of action exists. A board that treats it as a detail to be sorted out later is deciding the shape of its own case by accident.
  2. Understand that inverse condemnation is a different case, not a relabelled one. It is a constitutional taking claim: the measure is the damage to the property interest, proved by valuation evidence. That is a different evidentiary build from proving a breach of duty, and it needs appraisal work rather than only a plumber's report.
  3. Expect the procedural posture to be aggressive. The appellate court did not wait for trial or a final judgment. It issued a preliminary writ and made it permanent. A board whose counsel has pleaded torts against a condemning authority should not assume there is time to see how the trial court feels about it.
  4. Preserve the right to amend. The court expressly preserved leave to amend as an alternative to judgment on the pleadings. That option is worth more than an appeal on the tort counts, and it is worth asking for early rather than after dismissal.
  5. Document the encroachment and the damage on the day you find it. Inverse condemnation is about the interference with the property right. Photographs, survey evidence of where the line actually runs, the absence of a recorded easement, and contemporaneous valuation material are the record. In this case the ruptured line was the event, but the absence of an easement was the taking.

Where this sits in the Missouri record

The choice-of-remedy rule the court applied is long-settled Missouri law. What is useful about this decision is that it applies it categorically to association-owned common property and does so in a published opinion an association's counsel can be pointed at.

A related data point from the same period, which we identified but did not run down: the Missouri Bar's hand-down summary for the week of 19 December 2025 describes another inverse-condemnation decision holding that notice of damages must come from the plaintiff landowner itself, and that notice given by a different property owner is not a substitute. If that holds as described, it matters to associations in a specific way — an association cannot rely on an individual unit owner's notice to the condemning authority to preserve its own claim, and vice versa. We have not read that opinion and are not treating it as established.

What changes the answer

Two things, and both are factual rather than legal. Whether the defendant actually holds the power of eminent domain, which is a question about the entity's enabling authority rather than its size or its public appearance. And whether leave to amend into an inverse-condemnation count is sought and granted, which the court here kept expressly available.

What we have not confirmed

Whether a motion for rehearing was filed or an application for transfer to the Supreme Court of Missouri made in No. SD38855 is a docket event we did not obtain; Missouri's judicial websites block automated access. Nothing here asserts that the decision is beyond further review.

Related Missouri HOA Topics

← All Missouri HOA Topics

  1. State ex rel. City of Osage Beach v. Koeppen, No. SD38855 (Mo. App. S.D. Sept. 25, 2025) — opinion text
  2. The Missouri Bar, hand-down summaries, week of Sept. 26 – Oct. 2, 2025 (identification)

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