Justia Utilities Law Opinion Summaries

Articles Posted in Real Estate & Property Law
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The plaintiff, an employee of a subcontractor, was electrocuted while carrying a long-handled aluminum tool at a construction site. The tool either touched or came close to a high-voltage power line owned by the defendant utility company. The plaintiff sustained severe injuries, including amputations and a traumatic brain injury. He filed a lawsuit against the general contractor and the utility company, alleging negligence and premises liability.The Wayne Circuit Court denied the defendants' motions for summary disposition. The Michigan Court of Appeals reversed, holding that the general contractor was not liable under the common work area doctrine and that the utility company did not owe a duty of care to the plaintiff. The plaintiff sought leave to appeal to the Michigan Supreme Court.The Michigan Supreme Court held that the plaintiff presented sufficient evidence to survive summary disposition. The court found genuine issues of material fact regarding three of the four elements of the common work area doctrine for the general contractor. Specifically, there were factual disputes about the height of the power lines and whether the general contractor took reasonable steps to guard against the danger. The court also found that multiple subcontractors were exposed to the risk, satisfying the requirement of a high degree of risk to a significant number of workers in a common work area.Regarding the utility company, the court found genuine issues of material fact about whether the power lines were properly maintained and whether the injury was foreseeable. The court concluded that the utility company had a duty to ensure the safety of the power lines, given the pre-injury communications and the known dangers of high-reaching conductive tools.The Michigan Supreme Court reversed the Court of Appeals' decision and remanded the case to the trial court for further proceedings. View "El-Jamaly V Kirco Manix Construction Llc" on Justia Law

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This case involves a dispute between Simple Avo Paradise Ranch, LLC (Simple Avo), an avocado farm, and Southern California Edison Company (SCE), a utility company. Simple Avo claimed that SCE was responsible for damages caused by the 2017 Thomas Fire in Southern California due to SCE's alleged negligence in maintaining its electrical infrastructure. The case was part of a larger coordinated proceeding involving hundreds of similar lawsuits against SCE.Before Simple Avo filed its lawsuit, the trial court had overruled SCE's demurrer to the cause of action for inverse condemnation in the master complaints filed by each of the plaintiff groups. Simple Avo did not participate in the briefing or argument on SCE’s demurrer before the trial court. Instead, Simple Avo and SCE settled for an undisclosed amount and entered into a stipulated judgment whereby SCE would pay $1.75 million to Simple Avo on the inverse condemnation claim, subject to SCE’s appeal of the demurrer ruling.The Court of Appeal of the State of California, Second Appellate District, Division Seven, affirmed the lower court's decision. The court held that the stipulated judgment was appealable and justiciable, and that the trial court correctly overruled the demurrer. The court found that SCE could be liable for inverse condemnation as a public entity, and that the master complaint sufficiently alleged a cause of action for inverse condemnation. View "Simple Avo Paradise Ranch, LLC v. Southern Cal. Edison Co." on Justia Law

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The United States Court of Appeals for the Ninth Circuit affirmed the district court’s summary judgment for the Orange County Transportation Authority (OCTA) in a case brought by two utilities, Southern California Edison Company and Southern California Gas Company. The utilities claimed they were entitled to compensation under the Takings Clause or under state law for having to relocate their equipment from public streets to allow for the construction of a streetcar line.The court held that the utilities did not have a property interest under California law in maintaining their facilities at their specific locations in the face of OCTA’s efforts to construct a streetcar line. The California Supreme Court recognized in a previous case that a public utility accepts franchise rights in public streets subject to an implied obligation to relocate its facilities therein at its own expense when necessary to make way for a proper governmental use of the streets.The court rejected the utilities’ argument that constructing rail lines is per se a proprietary activity, not a governmental one. California common law has traditionally required utilities to bear relocation costs when governments construct subways, and there is no reason why above-ground rail lines should be treated differently.Finally, the court rejected the utilities’ supplemental state-law claim that California Public Utilities Code section 40162 places the costs of relocation on OCTA. That provision says nothing about imposing the costs of relocation on OCTA. Thus, section 40162 does not apply to OCTA’s project. View "SOUTHERN CALIFORNIA EDISON COMPANY V. ORANGE COUNTY TRANSPORTATION AUTHORITY" on Justia Law

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Cal-Am, an investor-owned utility that supplies water to much of the Monterey Peninsula, was subject to a state order to cease its decades-long overuse of certain water sources. Cal-Am sought to comply by drawing seawater and brackish water from coastal aquifers for desalination. The California Public Utilities Commission (CPUC), acting under the California Environmental Quality Act (CEQA, Pub. Resources Code, 21050), certified a final environmental impact report (EIR), and granted Cal-Am a Certificate of Public Convenience and Necessity. The City denied Cal-Am coastal development permits to install the intake wells. Cal-Am appealed to the California Coastal Commission.The County approved a permit to construct the desalination plant in unincorporated Monterey County. Marina Coast Water District challenged that approval, arguing that the County violated CEQA by failing to prepare a subsequent or supplemental EIR and adopting an unsupported statement of overriding considerations, and violated its own general plan by approving a project that lacked a long-term sustainable water supply. The trial court ruled that the County was not required to prepare another EIR and did not violate its own general plan, but unlawfully relied on the water-related benefits of the desalination plant in its statement of overriding considerations without addressing the uncertainty introduced by the City’s denial of the coastal development permit. The court of appeal reversed; the County’s statement of overriding considerations was supported by substantial evidence and any remaining deficiency in the statement was not prejudicial. View "Marina Coast Water District v. County of Monterey" on Justia Law

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In White Deer Township, a four-mile gap in Verizon’s wireless coverage overlays Interstate 80; Verizon customers are likely to experience “dropped calls,” “ineffective call attempts,” and “garbled audio.” The area is within Bald Eagle State Forest. A 2000 Pennsylvania moratorium prohibits the construction of cell towers on state forest land, so Verizon’s options were limited. After considering several sites and antenna configurations, Verizon decided to construct a 195-foot monopole topped with a four-foot antenna on privately owned land, comprising 1.9 acres and containing a cabin, shed, pavilion, and privy. Verizon leased 0.0597 acres, in the northeast corner of the property for the tower.The Township then permitted cell towers that complied with a minimum permissible lot size of one acre; cell towers had to be set back “from lot lines and structures a distance equal to the height of the facility, including towers and antennas, plus 10% of such height.” The Zoning Board denied Verizon’s variance applications, finding that Verizon’s alleged hardship was insufficient because it was “not a hardship connected to the capacity for the property to be used reasonably, but rather, the hardship [was connected to Verizon’s] capacity to use the property as desired.” The Third Circuit affirmed summary judgment for Verizon. The denial had “the effect of prohibiting the provision of personal wireless services,” in violation of the Telecommunications Act, 47 U.S.C. 332(c)(7)(B)(i)(II). View "Cellco Partnership v. White Deer Township Zoning Hearing Board" on Justia Law

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The Supreme Court affirmed the judgment of the district court affirming the decision of the Iowa Utilities Board (IUB) to grant MidAmerican Energy Company's petition for a franchise to build electric transmission lines in Madison County, some of which would run through a road right-of-way encumbering Appellant's land, holding that MidAmerican satisfied the statutory requirements for a franchise.Specifically, the Supreme Court held (1) MidAmerican satisfied the statutory requirement that new electric transmission lines must be necessary for a public use; (2) Iowa Code 306.46(1) provides utilities like MidAmerican with statutory authority to construct, operate, repair, or maintain their utility facilities with a public road right-of-way, including that right-of-way at issue in this case; and (3) as to the question of whether the construction of electric transmission lines within Appellant's right-of-way could result in a constitutional taking requiring compensation, this Court is evenly divided. View "Juckette v. Iowa Utilities Bd." on Justia Law

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The Supreme Court held that the Town of Marana violated Ariz. Rev. Stat. 9-463.05 by assigning the entire cost of upgraded and expanded wastewater treatment facilities to future homeowners through development impact fees.\Applying the Home Builders Ass'n of Central Ariz. v. City of Scottsdale, 187 Ariz. 479 (1997), the court ruled that the development impact fees bore a presumption of validity and that section 9-463.05 was satisfied because the development fees resulted in a beneficial use to the development. The court of appeals affirmed. The Supreme Court vacated the judgment of the court of appeals and reversed the trial court, holding (1) in applying section 9-463.05 as amended, the court of appeals erroneously applied from City of Scottsdale a presumption of validity to the Town's assessment of development fees; and (2) the Town violated section 9-463.05 by making future development bear 100 percent of the cost of acquiring the wastewater treatment facility and bearing nearly all of the cost of upgrading, modernizing, and improving the facility. View "Southern Ariz. Home Builders Ass'n v. Town of Marana" on Justia Law

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The Supreme Court affirmed in part and reversed I'm part the order of the district court granting summary judgment to the State and Department of Natural Resources and Conservation (State) regarding interpretation of a settlement agreement between the parties, holding that the district court erred by reaching the merits of a nonjusticiable issue.In this case stemming from settled litigation between the parties involving the State's rent claims against utility companies for use of riverbed acreage occupied by their hydroelectric projects. On appeal, defendant Avista Corporation argued that the district court erred in concluding that the agreement's provision governing a conditional reduction of rent would not provide a retroactive credit for past rent paid by Avista. The Supreme Court affirmed in part and reversed in part, holding (1) a portion of the district court's order must be reversed as being unripe and constituting an advisory opinion about speculative issues that may never arise; and (2) the district court properly declared that "Avista [was] required to continue to pay the annual full market rental rate as set forth in the Settlement, Consent Judgment, and Lease." View "State Dep't of Natural Resources & Conservation v. Avista Corp." on Justia Law

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In this dispute over whether Ohio Power Company, a private agency authorized to appropriate property under Ohio Rev. Code 163.01(B) and (C), was entitled to any of the necessary presumptions set forth in Ohio Rev. Code 163.09(B)(1) in establishing the necessity of easements through eminent domain to upgrade electric transmission lines, the Supreme Court held that the court of appeals properly reversed the trial court's determination that the appropriations at issue were necessary.Specifically, the Supreme Court held (1) the term "appropriation" in Ohio Rev. Code 163.09(B)(1) means the appropriation of the "parcel or contiguous parcels in a single common ownership, or interest or right therein," as identified in the petition filed by an agency under Ohio Rev. Code 163.05; (2) because neither Ohio Power's board of directors nor the Ohio Siting Board reviewed the appropriations Ohio Power was not entitled to a rebuttable presumption under section 163.09(B)(1)(a) or an irrebuttable presumption under section 163.09(B)(1)(c); and (3) Ohio Power was entitled to a rebuttable presumption under section 163.09(B)(1)(b) because it provided evidence of the necessity for the appropriations. The Court remanded this case for further proceedings. View "Ohio Power Co. v. Burns" on Justia Law

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The Supreme Court affirmed in part and reversed in part the judgment of the district court dismissing this case claiming that the Traverse Ridge Special Service District needed either to stop charging members The Cove at Little Valley Homeowners Association for services it had never provided or to start plowing snow from private roads in front of homes in the Cove, holding that the district court erred in part.The Service District filed a motion to dismiss for failure to state a claim because the Draper City Code did not require it to service private roads and because the Homeowners Association needed to bring its challenge in a manner dictated by the Utah Tax Code. The Supreme Court affirmed the district court's dismissal of the Cove's first cause of action but reversed its dismissal of the second reversed in part, holding that the district court erred when it concluded that the assessment its members paid to the Service District was a tax as a matter of law. View "Cove at Little Valley Homeowners Ass'n v. Traverse Ridge Special Service District" on Justia Law