Justia Utilities Law Opinion Summaries
Articles Posted in Real Estate & Property Law
Pacific Gas and Electric Co. v. Superior Court
Rowe, age 12, suffered catastrophic injuries during a family camping trip at San Mateo County Memorial Park, when a tree fell on his tent as he lay sleeping. Pacific Gas and Electric (PG&E) owns and maintains an electricity distribution line that serviced a nearby restroom, and has a license permitting it to enter the park to inspect and maintain its equipment and vegetation near its power lines, including near Rowe's campsite. Rowe’s family paid an entrance fee to the county, but paid nothing to PG&E. The county paid PG&E for electricity. Civil Code section 846 confers property owners with immunity from liability arising from the recreational use of their property, with an exception applicable when permission to enter the premises for a recreational purpose “was granted for a consideration.” The court of appeal concluded that the consideration exception applies to PG&E even though Rowe’s fee was not paid to PG&E. Payment of consideration for permission to enter premises for a recreational purpose abrogates section 846 immunity of any nonpossessory interest holder who is potentially responsible for the plaintiff’s injuries, including a licensee or easement holder who possesses only a limited right to enter and use a premises on specified terms but no right to control third-party access. View "Pacific Gas and Electric Co. v. Superior Court" on Justia Law
Kansas City S. Ry. v. Sny Island Levee Drainage Dist
Pike County's Sny Island Levee Drainage District was organized in 1880 to protect from Mississippi River flooding and runoff. The Kansas City Southern and the Norfolk Southern operate main line railways over the District's flood plain. Illinois law permits the District to assess properties within its territory in order to maintain the levees. A new method, adopted in 2009, purported to calculate assessments based on the benefits the District conferred on each property, rather than based on acreage. After the Seventh Circuit enjoined use of the methodology, the District discontinued collecting annual assessments and implemented a one-time additional assessment, 70 ILCS 605/5. The District filed an assessment roll based on new benefit calculations, identifying the tax on KC as $91,084.59 and on Norfolk as $102,976.18, if paid in one installment..The Railroads again filed suit, alleging that the District used a formula that discriminated against them in violation of the Railroad Revitalization and Regulatory Reform Act, 49 U.S.C. 11501. The Seventh Circuit affirmed judgment in favor of the District. The court rejected an argument that the comparison class against which their assessment should be measured is all other District properties, instead of the narrower class of commercial and industrial properties used by the district court. There was no clear error in the court’s assessment of a “battle of the experts.” View "Kansas City S. Ry. v. Sny Island Levee Drainage Dist" on Justia Law
City of Santa Maria v. Adam
The court of appeal previously remanded the suit, concerning the rights to groundwater contained in the Santa Maria Valley Groundwater Basin. The parties are landowners who extract groundwater for agricultural use and public water producers that pump groundwater for municipal and industrial use. The court of appeal directed the trial court to quiet title to the landlowners’ overlying rights to native groundwater by declaring that these rights have priority over all appropriators, less the amount that the public producers are entitled to pursuant to their prescriptive rights. The trial court amended its judgment to hold that the city had established a total prescriptive right of 5100 acre feet per year and Golden State Water Company had established a total prescriptive right of 1900 acre feet per year, both perfected against the Basin aquifer as a whole, so only a proportionate amount of the prescriptive right could be exercised against the landowners’ overlying rights. The court did not quantify the proportionate prescriptive rights nor reconsider its prevailing party determination or allocation of costs. The court of appeal affirmed, holding that the trial court properly quieted title and did not err when it declined to reconsider the prevailing party determination. View "City of Santa Maria v. Adam" on Justia Law
Va. Elec. & Power Co. v. Hylton
Dominion obtained necessary certificates for transmission lines to connect Dominion’s recently-approved Wise County power plant with an existing Russell County substation. In 2008, Dominion offered Hylton $19,100 to purchase a 7.88-acre easement. Hylton owned 354 acres across 20 contiguous and two non-contiguous tracts. He owned the surface and mineral rights of some tracts and only the mineral rights of others. Dominion included an appraisal, acknowledging that, according to Hylton, two major coal seams run through or near the property and that Hylton’s ability to sell or lease those mineral rights might be damaged. The appraisal did not consider mineral rights in determining fair market value. The parties signed an agreement granting Dominion the right to enter and construct the transmission line. Dominion filed its petition for condemnation, limited to the surface use of Hylton’s property and moved to prohibit Hylton from presenting evidence of “the separate value of coal,” damage to tracts not taken, and “damages for duplicative or inconsistent claims.” Hylton later moved to dismiss, arguing that Dominion’s pre-petition offer to purchase was not a bona fide offer, under Code 25.1-204, so that Dominion had failed to meet jurisdictional requirements for condemnation. The trial court dismissed and awarded Hylton attorneys’ fees. The Supreme Court of Virginia reversed the dismissal and the denial of Dominion’s motion in limine with regard to evidence related to the separate value of the coal and the potential surface mine. Because the issue of whether the unity of lands doctrine applies with respect to neighboring lands, not part of the taking, is a question of fact, denying the motion on that issue was appropriate. View "Va. Elec. & Power Co. v. Hylton" on Justia Law
Eldorado Coop Canal Co. v. Hoge
The Water Court is adjudicating the existing water right claims of all appropriators in the Teton River Basin and issued a temporary preliminary decree for Basin 41O. Eldorado, which distributes water to shareholders from the Teton River northwest of Choteau, owns water rights that historically have been administered under the 1908 Perry Decree by a water commissioner (MCA 85-5-101). In 2014, the Water Court addressed objections to Eldorado’s existing water right claims as established under the temporary preliminary decree. The Montana Supreme Court, in Eldorado I, upheld the Water Court’s determinations that Eldorado’s claims required a volume quantification and that Eldorado historically put to beneficial use 15,000 acre-feet of water under its existing rights. The Joint Objectors later informed the water commissioner that Eldorado was approaching the volumetric quantification established by that order and requested that he cap the distribution of Eldorado’s water. Eldorado petitioned the Water Court to stay the volume quantification order pending the Eldorado I appeal. The Water Court denied Eldorado’s request and the commissioner ceased delivering water to Eldorado. Eldorado filed a dissatisfied water user complaint (MCA 85-5-301). The Montana Supreme Court affirmed denial of that complaint. Eldorado participated in every step of the process that resulted in the establishment of its rights under the modified temporary preliminary decree. View "Eldorado Coop Canal Co. v. Hoge" on Justia Law
Bd. of Cnty. Comm’r Indian River Cnty. v. Art Graham, etc.
The Board challenged two separate orders of the PSC. The first order is a declaratory statement that the PSC issued in response to a petition filed by the City of Vero Beach, in which the PSC declared that the City has the right and obligation under territorial orders issued by the PSC to continue to provide electric service in the territory described in the orders (which includes unincorporated portions of the County) upon the expiration of the City’s franchise agreement with the County. The court rejected the County's challenges and held that the City had standing to seek this declaration from the PSC concerning territorial orders to which the City is a party and which the County had taken the position would be voided by the Franchise Agreement’s expiration, thereby effectively evicting the City. The court also held that the PSC’s declaration is within the PSC’s authority as the entity with exclusive and superior statutory jurisdiction to determine utility service areas, and that the declaration does not impermissibly grant the County’s property rights to the City or violate the statutory prohibition against the PSC affecting a franchise fee. The second order on appeal denies the County’s petition for a declaratory statement on the ground that it failed to meet applicable statutory requirements. The court agreed and affirmed this order without further comment. View "Bd. of Cnty. Comm'r Indian River Cnty. v. Art Graham, etc." on Justia Law
Sw. Power Pool Inc. v. Kanis & Denny Roads Suburban Water Improvement Dist. No. 34
In 2013, the Kanis and Denny Roads Suburban Water Improvement District No. 349 of Pulaski County (the District) reassessed Southwest Power Pool, Inc.’s (SPP) commercial facility, an improvement on its property that is connected to the City of Little Rock’s waterworks system, which resulted in an annual levy of $60,653. The District’s board of equalization confirmed the reassessment. SPP then filed a complaint in circuit court, arguing that the reassessment was wrong as a matter of law and of fact. The circuit court largely granted the District’s motion for summary judgment, and, following a bench trial on the issue of the sufficiency of the 2013 notice of reassessment, the circuit court granted final judgment in favor of the District. The Supreme Court reversed, holding that SPP’s facility cannot be assessed, and accordingly, the 2013 reassessment, and the subsequent reassessments, are invalid. View "Sw. Power Pool Inc. v. Kanis & Denny Roads Suburban Water Improvement Dist. No. 34" on Justia Law
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
Green Valley Landowners Ass’n v. City of Vallejo
The Lakes Water System (LWS), created in the late 1800s-early 1900s, provides Vallejo with potable water. After completing a diversion dam and the Green Line for transmission, the city created two reservoirs, Lake Frey and Lake Madigan, which were soon insufficient to meet demand. The city began storing water in hills above Napa County’s Gordon Valley and constructed the Gordon transmission line. The city acquired easements from some property owners by agreeing to provide “free water.” The city also agreed to provide potable water to other nonresident customers. In the 1950s, the city obtained water rights from the Sacramento River Delta and contracted for water from the Solano Project. In 1992, water quality from Lake Curry ceased to meet standards and the city closed the Gordon Line. In 1992 the city passed an ordinance shifting the entire cost of LWS to 809 nonresident customers, so that their rates increased by 230 percent. The city passed additional rate increases in 1995 and 2009. Plaintiff, representing a purported class of nonresident LWS customers, alleges the city has grossly mismanaged and neglected LWS, placing the burden on the Class to fund a deteriorating, inefficient, and costly system, spread over an “incoherent service area” and plaintiff did not become aware of unfunded liabilities until 2013 The court of appeal affirmed dismissal; plaintiff cannot state any viable claims alleging misconduct by the city. View "Green Valley Landowners Ass'n v. City of Vallejo" on Justia Law
Northeast Ohio Reg’l Sewer Dist. v. Bath Twp.
The Northeast Ohio Regional Sewer District (the “Sewer District”) filed an action seeking a declaratory judgment that it had the authority to implement a regional stormwater-management program and to impose fees to be charged to landowners within the Sewer District. The trial court declared that the Sewer District had authority under Ohio Rev. Code 6119 and its charter to enact a regional stormwater-management program. The court of appeals reversed. The Supreme Court reversed, holding that the Sewer District has authority to implement a regional stormwater-management program and to charge fees for that program. View "Northeast Ohio Reg’l Sewer Dist. v. Bath Twp." on Justia Law
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