Baatz v. Columbia Gas Transmission, LLC

295 F. Supp. 3d 776
CourtDistrict Court, N.D. Ohio
DecidedFebruary 14, 2018
DocketCase No. 1:14–cv–505
StatusPublished
Cited by2 cases

This text of 295 F. Supp. 3d 776 (Baatz v. Columbia Gas Transmission, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baatz v. Columbia Gas Transmission, LLC, 295 F. Supp. 3d 776 (N.D. Ohio 2018).

Opinion

Thomas M. Parker, United States Magistrate Judge

I. Introduction

Plaintiffs in this action are the owners of residential lots in Medina County, Ohio ("Landowners"). Defendant Columbia Gas Transmission, LLC ("Columbia") is a wholesale producer and distributor of natural gas which established a 10,000 acre underground natural gas storage facility in the Clinton sandstone formation in Medina County (the "Medina Storage Field"). Columbia was authorized-and required-to construct and operate the Medina Storage Field by the former Federal Power Commission in 1958, and it has stored natural gas in that facility since 1959. Federal law authorizes natural gas facility operators to take property by eminent domain to accomplish the purposes set forth in certificates of public convenience and necessity under the Natural Gas Act. Despite receiving a certificate in 1958 and operating the Medina Storage Field since 1959, Columbia did not seek to acquire underground gas storage easements under the Landowners' properties until 2014. The Landowners sued for trespass and unjust enrichment damages. Columbia has moved for summary judgment on the Landowners claims. ECF Doc. 89. The Landowners have also moved for partial summary judgment, seeking a liability determination that Columbia has trespassed on each of the Landowners' properties since 1959 and a declaration that the trespass was malicious. EFC Doc. 86. Because the Landowners have no evidence that Columbia's conduct has caused actual damage to Landowners' properties or has in any way interfered with Landowners' use or anticipated use of their properties, and because Columbia's construction and operation of the Medina Storage Field was mandated by federal agency action, Columbia cannot be liable to the Landowners for trespass. In addition, because Landowners will receive just compensation for Columbia's taking in a companion action, Columbia's only potential liability on an unjust enrichment claim is for interest on the just compensation amount it is required to pay. The court will direct the parties to submit an agreed calculation of the prejudgment *780interest amount. As a result, Columbia's motion for summary judgment will be GRANTED in PART and DEFERRED in PART and Landowners' motion for partial summary judgment will be DENIED.

II. Procedural Background and Claims Asserted

The Landowners instituted this action on March 5, 2014. Doc. 1. They asserted claims similar to those alleged in an earlier-filed putative class action case in the Southern District of Ohio, Wilson et al v. Columbia Gas Transmission, LLC , Case No. 2:12cv01203 (S.D. Ohio 2012). None of the plaintiffs in this case was an original party in Wilson ; but Columbia is the defendant in both cases. On April 22, 2014, Columbia filed an amended counterclaim in Wilson joining the Medina Landowners as counterclaim defendants. The next day, Columbia moved to dismiss the instant case, asserting that Wilson , the first filed case, had priority. On March 5, 2015, Judge Wells granted Columbia's motion to dismiss. ECF Doc. Nos. 18, 19. On February 24, 2016, the Sixth Circuit reversed the dismissal and remanded the case. ECF Doc. No. 22. Taking a suggestion by the court of appeals, Columbia moved to stay this case. ECF Doc. No. 27. On May 4, 2016, Judge Gwin1 denied defendant's motion to stay due, in part, to delays in Wilson and the appropriateness of venue in the Northern District of Ohio.

On May 26, 2016, Columbia and the Medina Landowners jointly requested that their claims in Wilson be severed and transferred to the Northern District of Ohio. That request was granted, and on June 10, 2016, the case was transferred to the Northern District of Ohio and recaptioned Columbia Gas Transmission , LLC v. Booth, et a. , 1:16cv01418 ("Booth. ") Shortly thereafter, Columbia filed an Amended Complaint in condemnation against the Landowners in Booth .2

On May 27, 2016, one day after the parties' joint request to sever and transfer their claims in Wilson , Columbia moved to dismiss the instant case, arguing that its assertion of a condemnation claim in Booth mooted certain claims in this case. ECF Doc. Nos. 32, 33. Columbia contended that all of the Landowners' other claims were preempted by the NGA.

On December 22, 2016, the court granted, in part, Columbia's motion to dismiss. ECF No. 58. Plaintiffs' claims for mandamus/inverse condemnation (Count Three), declaratory judgment (Count Four), and permanent injunction (Count Five) were dismissed. The court declined to dismiss the claims for trespass (Count One) and unjust enrichment (Count Two).

The Landowners premise their trespass and unjust enrichment claims on the contention that Columbia had no right to store natural gas beneath their properties prior to the acquisition of property rights by eminent domain. In Count One, the Landowners claim that Columbia maliciously trespassed and should be liable for nominal, compensatory, and punitive damages and for attorney fees. Count Two asserts that Columbia has been unjustly enriched by being able to store natural gas beneath their properties without cost since 1959. The Landowners claim Columbia should be required to disgorge what it would have *781paid for such gas storage, or the net profit it earned from storing natural gas beneath their properties. They also impliedly claim Columbia was unjustly enriched by retaining the money it would have paid as just compensation for its taking of their properties.

III. Factual and Regulatory Background

The following facts are undisputed and/or established by the Rule 56 evidence. Columbia is an interstate natural gas company as defined by Section 2(a) of the Natural Gas Act ("NGA"). ECF Docs. 46, 66. Columbia operates an extensive interstate natural gas transportation and storage system that includes one of North America's largest underground natural gas storage systems (37 storage fields in four states with nearly 600 billion cubic feet in total capacity). Id. The Medina Storage Field is one of those facilities. Id. The Medina Storage Field exists within the Clinton sandstone formation located approximately 3,000 feet beneath the surface of the land. Id. Columbia injects natural gas into these storage fields during the summer months when gas demand is low and withdraws the storage gas during the winter months when demand is high, in order to stabilize the supply and, as a result, the price of natural gas. Id.

The Natural Gas Act ("NGA"), 15 U.S.C. § 717 et seq. regulates Columbia's interstate natural gas operations. Id. The NGA authorizes the Federal Energy Regulatory Commission ("FERC") to issue certificates of public convenience and necessity to undertake the construction and maintenance of facilities for the transportation, distribution and sale of natural gas. 15 U.S.C. § 717f(c).

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Bluebook (online)
295 F. Supp. 3d 776, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baatz-v-columbia-gas-transmission-llc-ohnd-2018.