Baatz v. Columbia Gas Transmission, LLC

Columbia stores natural gas in Medina Field, a naturally-occurring system of porous underground rock, pumping gas into the Field during summer, during low demand, and withdrawing it during winter. Medina is among 14 Ohio gas storage fields used by Columbia. Columbia received a federal Certificate of Public Convenience and Necessity, 15 U.S.C. 717f, and was required to compensate those who own part of the Field by contractual agreement or eminent domain. The owners allege that Columbia stored gas for an indeterminate time without offering compensation and then offered $250 per lot. Each Medina owner rejected this offer. Columbia did not bring eminent domain proceedings. Other Ohio landowners accused Columbia of similar behavior and filed the Wilson class action in the Southern District of Ohio, including the Medina owners within the putative class. The Medina owners filed suit in the Northern District. Both actions claim trespass and unjust enrichment under Ohio law, and inverse condemnation under the Natural Gas Act. The Wilson suit also seeks damages for “native” natural gas Columbia takes when it withdraws its own gas. Columbia filed a counterclaim in Wilson, seeking to exercise eminent domain over every member of the putative class and join the Medina owners. The Northern District applied the first-to-file rule and dismissed. The Sixth Circuit reversed. The rule does apply, but dismissal was an abuse of discretion given jurisdictional and procedural hurdles to having the Medina claims heard in Wilson. View "Baatz v. Columbia Gas Transmission, LLC" on Justia Law