Angus Chemical Company v. Glendora Plantation, Inc

782 F.3d 175, 2015 U.S. App. LEXIS 4790, 2015 WL 1344545
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 24, 2015
Docket14-30416
StatusPublished
Cited by16 cases

This text of 782 F.3d 175 (Angus Chemical Company v. Glendora Plantation, Inc) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Angus Chemical Company v. Glendora Plantation, Inc, 782 F.3d 175, 2015 U.S. App. LEXIS 4790, 2015 WL 1344545 (5th Cir. 2015).

Opinion

FORTUNATO P. BENAVIDES, Circuit Judge:

This contract dispute involves a Righbof-Way Easement Option (“Agreement”) involving Plaintiff-Appellee Angus Chemical Company (“Angus”) and Defendant-Appellant Glendora Plantation, Inc. (“Glendora”). This appeal arises from the district court’s grant of Angus’s motion for partial summary judgment, denial of Glendora’s motion for partial summary judgment, and denial of Glendora’s motion to compel discovery. The specific issues brought on appeal are: (1) whether Angus had authority under the Agreement to abandon the original 12" pipeline in place when it constructed a new 16" pipeline, (2) whether Angus had authority under the Agreement to install fiber optic cables, and (3) whether it was improper for the district court to deny Glendora’s motion to compel discovery.

I. FACTUAL AND PROCEDURAL HISTORY

Angus owns a facility in Sterlington, Louisiana, that produces nitroparaffin products, a byproduct of which is wastewater containing formaldehyde and acetone. The wastewater is removed through an underground pipeline that goes through land owned by others to a wastewater treatment plant three and one-half miles away. In 1978, IMC Chemical Group, Inc. (“IMC”), Angus’s predecessor-in-interest, obtained rights of way or servitudes from the other landowners to construct and operate a wastewater pipeline. At issue here is the “Right of Way Easement Option” granted by George and Mary Tilford Smelser on March 28, 1978, to IMC and its successors and assigns. The Agreement provides in relevant part:

GEORGE P. SMELSER and MARY TILFORD SMELSER[ ] ... does hereby grant, bargain, sell and convey unto IMC CHEMICAL GROUP, INC., ... its successors and assigns, ... an option to acquire a right of way and easement with the right to construct, maintain, inspect, operate, protect, alter, repair, replace and change the size of a pipeline for the transportation of liquids, gases, solids in either singular or mixed form or any other substances which can be transported through pipelines, together with all incidental equipment and appurtenances, either above or below ground, including but not limited to filtering devices, valves, meters, drips and other necessary and convenient installations, on, over, under, across and through the following described property, along a route to be selected by the Grantee[.]

IMC exercised the option on August 31, 1978, after which the option “automatically [became] an indefeasible right of way agreement without further actions being necessary, and all of the rights, title and privileges herein granted ... thereafter [became] vested in [IMC], its successors or assigns.”

In 1979, IMC constructed a 12" pipeline from its Sterlington plant, across the Smelser property, and to its wastewater treatment facility. Angus subsequently-purchased the rights from IMC, and Glendora purchased the Smelser property. Leaks from the pipeline occurred in 2007, 2010, and 2011, after which Angus decided to replace the pipeline. In 2010, Angus *178 began to design a 16" pipeline to replace the 12" pipeline. 1

Angus sought permission to abandon the 12" pipeline from the affected landowners, and all but Glendora agreed. On January 26, 2012, Angus proposed a “Supplemental Agreement” that provided in relevant part:

It is further understood and agreed that, after the sixteen inch (16") pipeline is installed and in service, then the existing twelve inch (12") pipeline currently in service across [Glendora’s] property will be flushed and cleaned and [Angus] will be allowed by [Glendora] to abandon in place, and [Angus] shall have no future responsibility or obligations for the twelve inch (12") pipeline abandoned on [Glendora’s] property.

On January 27, 2012, Angus proposed a “Pipeline Servitude Ratification and Acknowledgement” that, inter alia, sought to “acknowledge[ ] and eonfirm[]” that the right of way included the right to “abandon!] in place” one 12" pipeline, and offered to pay Glendora for authorization. Glendora did not agree to either of these proposals.

On June 14, 2012, Angus filed a complaint seeking a declaratory judgment that (1) Angus has a valid servitude; 2 (2) per the servitude, Angus may abandon the 12" pipeline after a new pipeline is in service; (3) Angus may lay a 16" pipeline, fiber optic cables, and a tracer wire; (4) the servitude will be 50' wide during construction of the 16" pipeline and 30' wide thereafter; and (5) Angus will have right of ingress and egress during construction. Glendora filed an answer and counterclaim on August 13, 2012, and an amended answer and counterclaims on October 25, 2012.

After the suit was filed, Angus began construction of the 16" pipeline. Angus also installed two fiber optic cables parallel to the 16" pipeline, and a tracer wire on top of the pipeline. The 16" pipeline was completed and placed into service on October 3, 2012. The 12" pipeline was taken out of service that same day. By the end of November of 2012, Angus flushed, cleared, plugged, and abandoned the 12" pipeline in place.

On March 5, 2013, Glendora filed a motion to compel discovery, which was opposed by Angus. Both parties filed motions for partial summary judgment. Angus moved for summary judgment on the following issues: (1) that Angus has a valid and enforceable servitude through Glendora’s property, (2) that the Agreement is a personal servitude of rights of use, (3) that Angus is not a trespasser, (4) that Glendora is not entitled to recovery of Angus’s profits, and (5) that Angus’s installation of the fiber optic cables and tracer wire was within the bounds of the Agreement. Glendora moved the district court to (1) find that Angus did not have authority under the Agreement to abandon the 12" pipeline, (2) find that Angus did not have authority to construct and operate the 16" pipeline and fiber optic cables with the 12" pipeline in place, (3) declare that Angus is a trespasser on Glendora’s property; (4) declare that Angus’s trespass is in bad faith, and (5) dismiss Angus’s request for a declaratory judgment.

While these motions were pending, on April 22, 2013, the magistrate judge denied *179 Glendora’s motion to compel discovery, 3 and Glendora appealed to the district court judge.

On November 20, 2013, the district court granted Angus’s motion for partial summary judgment and denied Glendora’s motion for partial summary judgment and motion to compel discovery. The court found:

[ (1) ] that Angus has a valid and enforceable servitude through the property of Glendora; [ (2) ] that the Right-of-Way Agreement created a personal servitude of rights of use; (3) that Angus had the authority under the Right-of-Way Agreement to construct the 16" pipe and abandon the original 12" pipeline in place; and (4) that Angus had the authority under the Right-of-Way Agreement to install fiber optic cables and tracer wires.

The court found it unnecessary to reach Glendora’s trespass and trespass-in-bad-faith arguments.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
782 F.3d 175, 2015 U.S. App. LEXIS 4790, 2015 WL 1344545, Counsel Stack Legal Research, https://law.counselstack.com/opinion/angus-chemical-company-v-glendora-plantation-inc-ca5-2015.