B. Willis, C.P.A., Inc. v. BNSF Railway Corp.

531 F.3d 1282, 2008 U.S. App. LEXIS 15118, 2008 WL 2746403
CourtCourt of Appeals for the Tenth Circuit
DecidedJuly 16, 2008
Docket06-5015
StatusPublished
Cited by51 cases

This text of 531 F.3d 1282 (B. Willis, C.P.A., Inc. v. BNSF Railway Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
B. Willis, C.P.A., Inc. v. BNSF Railway Corp., 531 F.3d 1282, 2008 U.S. App. LEXIS 15118, 2008 WL 2746403 (10th Cir. 2008).

Opinion

EBEL, Circuit Judge.

In 1992, Defendant-Appellee Public Service Company of Oklahoma (“PSO”) used the eminent domain authority granted to it under Oklahoma law to condemn an easement across property owned by Plaintiff-Appellant B. Willis, C.P.A., Inc. (“Willis”). Willis, in turn, invoked remedies available under Oklahoma law, first to challenge, before a state court judge, the necessity for PSO to condemn this easement for a public use; and second to challenge, in a jury trial, the amount of compensation awarded Willis for the easement. Pursuant to Oklahoma law, PSO took possession of the easement while Willis’ challenges to the condemnation proceedings were ongoing and, since 1995, has operated a rail line across Willis’ property.

Willis commenced this federal litigation while those state proceedings remained pending, asserting federal and state law claims in this federal action that challenged aspects of the state condemnation case. The district court dismissed these claims, concluding that prior federal proceedings precluded one of Willis’ claims *1288 and that Willis’ other claims would not be ripe for adjudication as long as the state court condemnation action remained ongoing. While the district court’s decision was before this court on appeal, however, the state courts finally resolved Willis’ challenge to the necessity of PSO’s condemning the easement, concluding that PSO had established a public necessity sufficient to warrant condemnation of the easement.

Because this decision conclusively resolved the material issues presented by most of Willis’ claims asserted in this federal action, Oklahoma issue preclusion principles preclude Willis from pursuing all but portions of two of its claims. The two exceptions are 1) aspects of Willis’ due process/equal protection claim, to the extent that Willis alleges PSO acted in concert with the state trial judge to deprive Willis of an initial hearing and discovery to challenge the public necessity of the easement; and 2) Willis’ trespass claim, to the extent that claim alleges that PSO removed limestone and coal from below the surface of the easement.

We AFFIRM the district court’s dismissal of all but these aspects of Willis’ due process/equal protection and trespass claims, but we REMAND those precluded claims with directions that the district court dismiss them with prejudice. As to those portions of Willis’ due process/equal protection and trespass claims that are not precluded, because the state proceedings challenging the amount of compensation awarded for the easement are still pending, those claims are not yet ripe for adjudication. We, therefore, AFFIRM the dismissal of those claims, but REMAND them to the district court to clarify that their dismissal is without prejudice.

I. BACKGROUND

A. Prior litigation between the parties

Willis 1 owns property in Oolagah, Rogers County, Oklahoma. PSO operates a power plant nearby. Defendant Union Pacific owns a rail line that runs adjacent to this power plant.

To fuel its plant, PSO purchases coal from the Powder River Basin in Wyoming and contracts with Defendant BNSF Railway Corporation (“BNSF”) to transport the coal to the Oolagah plant. Because BNSF did not own or operate a rail line adjacent to the plant, however, it had to subcontract with Union Pacific to complete delivery. PSO believed that it could obtain much better shipping terms if BNSF also had a rail line running to the power plant, because then the two railroads would have to compete for PSO’s shipping business. Therefore, PSO sought to build a rail line, approximately ten miles long, connecting the power plant to an already-existing BNSF line. That new line ran through Willis’ property.

When Willis refused to grant PSO an easement across its property to build and operate this rail line, PSO, in October 1992, began proceedings to condemn the easement under Oklahoma’s eminent domain provisions. The Oklahoma Constitution permits the condemnation of private property for a public use. See Okla. Const. art. 2, § 24. 2 And Okla. Stat. tit. 27, § 7 expressly gives a power company, such *1289 as PSO, “the right of eminent domain in the same manner and by like proceedings as provided for railroad corporations” under Oklahoma law. 3 Oklahoma law further sets forth specific procedures, see Okla. Stat. tit. 66, §§ 51-66, by which a railroad or power company can condemn private property for “a lawful public use.” Pub. Serv. Co. of Okla. v. B. Willis, C.P.A., Inc., 941 P.2d 995, 999 (Okla.1997) (citing Okla. Const. art. 2, §§ 23, 24).

Acting pursuant to these eminent domain procedures, PSO filed a petition in a Rogers County state court to condemn the easement across Willis’ property. The state court then appointed a three-member commission, which determined “just compensation” PSO should pay Willis for the easement. Okla. Stat. tit. 66, § 53(A), (C); 4 see also City of Stigler v. Crumley, 99 P.3d 253, 254 (Okla.Civ.App.2004). Willis objected, not only to the amount of *1290 compensation the three-member commission awarded, but to the validity of the condemnation itself, asserting that PSO was not taking the easement for a public use. 5 See Willis, 941 P.2d at 997.

Notwithstanding Willis’ objection challenging the public need for PSO to take an easement across Willis’ property, the state trial court denied Willis discovery on this issue and, without conducting an evidentia-ry hearing, held “that [PSO’s] simple allegation of necessity in the [condemnation] petition was sufficient to sustain PSO’s case” for condemning the easement; that is, because PSO had statutory authority to condemn property under Okla. Stat. tit. 27, § 7, Willis had no right to contest PSO’s taking the easement across Willis’ property. Willis, 941 P.2d at 997-98. Willis appealed that determination. See id. at 998.

Despite Willis’ pending appeal, Okla. Stat. tit. 66, § 56 permitted PSO to take possession of the easement by paying the court clerk, on Willis’ behalf, the amount of compensation the appointed three-member commission had awarded Willis. 6 See Pub. Serv. Co. of Okla. v. B. Willis, C.P.A., Inc., 155 P.3d 845, 848-49 (Okla.Civ.App.2006), cert. denied, — U.S. —, 128 S.Ct. 66, 169 L.Ed.2d 16 (2007).

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Bluebook (online)
531 F.3d 1282, 2008 U.S. App. LEXIS 15118, 2008 WL 2746403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/b-willis-cpa-inc-v-bnsf-railway-corp-ca10-2008.