Concha Chemical Pipeline v. Schwing

835 So. 2d 543, 2001 La.App. 1 Cir. 2093, 2002 La. App. LEXIS 2824, 2002 WL 31235499
CourtLouisiana Court of Appeal
DecidedSeptember 27, 2002
Docket2001 CA 2093
StatusPublished
Cited by3 cases

This text of 835 So. 2d 543 (Concha Chemical Pipeline v. Schwing) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Concha Chemical Pipeline v. Schwing, 835 So. 2d 543, 2001 La.App. 1 Cir. 2093, 2002 La. App. LEXIS 2824, 2002 WL 31235499 (La. Ct. App. 2002).

Opinion

835 So.2d 543 (2002)

CONCHA CHEMICAL PIPELINE
v.
E.B. SCHWING, III.

No. 2001 CA 2093.

Court of Appeal of Louisiana, First Circuit.

September 27, 2002.

Amy D. Berret, James P. Dore', Baton Rouge, for Plaintiff-Appellee Concha Chemical Pipeline.

Stan P. Baudin, Patrick W. Pendley, Plaquemine, for Defendant-Appellant Edward B. Schwing, III.

Before: FITZSIMMONS, GUIDRY, and PETTIGREW, JJ.

PETTIGREW, J.

Prior to the institution of this expropriation proceeding, plaintiff pipeline company erroneously believed that it had acquired consent from all of the affected landowners. After construction of its pipeline was nearly complete, the pipeline company learned that it had not secured consent from one landowner. When negotiations to acquire the outstanding interest failed, the pipeline company filed suit for expropriation. From a judgment awarding compensation to the landowner, the landowner has appealed seeking trespass damages. We affirm.

FACTS

Concha Chemical Pipeline Company ("Concha"), plaintiff herein, constructs, operates, and maintains (by contract with Shell Pipeline Corporation ("Shell")) "common carrier petroleum pipelines" for the transmission and transportation of petroleum, its products, and by-products.

During June, July, and August of 1996, Concha Chemical Pipeline Company ("Concha"), plaintiff herein, contacted numerous landowners and secured right-of-way agreements for development of the Lou-Tex pipeline, a 265-mile pipeline stretching from Sorrento, St. James Parish, Louisiana to Mont Belvieu, Texas. In connection therewith, Concha executed Pipeline Right-of-Way agreements with various members of the Schwing family. *544 Said right-of-way agreements granted to Concha a servitude and right-of-way for the construction of a common carrier pipeline across undivided property owned by the individual Schwing heirs and situated in Sections 27 and 28, Township 10 South, Range 11 East, in Iberville Parish, Louisiana.

One of these landowners, Edward B. Schwing, III ("Mr.Schwing"), defendant herein, signed the right-of-way agreement in his capacity as agent and attorney-in-fact for the interests he had previously transferred to his three children. This agreement was ultimately recorded in the conveyance records of Iberville Parish. Mr. Schwing did not mention that he personally retained an interest in the property.

In October of 1996, after the pipeline was constructed and operational, Mr. Schwing contacted a representative of Shell and advised that he owned an undivided 1.319 percent interest in property affected by the pipeline. Mr. Schwing also advised that while he had executed the Pipeline Right-of-Way Agreement on behalf of his children, he had not executed the agreement on his own behalf. Mr. Schwing claimed he was entitled to compensation for Concha's use of his land.

Thereafter Concha attempted to negotiate with Mr. Schwing for the acquisition of this conventional right-of-way and servitude. When the parties were unable to agree upon the terms and compensation to be paid to Mr. Schwing, Concha filed a Petition for Expropriation on April 18, 1997.

ACTION OF THE DISTRICT COURT

In response, Mr. Schwing filed an answer and reconventional demand on May 19, 1997. Mr. Schwing asserted that Concha was a bad faith possessor and that Concha's construction of the pipeline constituted a trespass that disturbed his peaceful possession of the property. Mr. Schwing sought immediate removal of the pipeline, or in the alternative, for injunctive relief during the pendency of this litigation and nonpecuniary damages. Concha filed a motion for summary judgment on March 13, 1998, and asserted that Mr. Schwing had acquiesced to the taking of his property and the construction of the pipeline by Concha. Accordingly, Concha asserted that Mr. Schwing was estopped from complaining about the pipeline's construction.

Following a hearing on June 2, 1998, the district court granted Concha's Motion for Summary Judgment on January 14, 1999. The district court also held that Concha had the right to expropriate Mr. Schwing's property, and further ruled that the only remaining issue was the just compensation due Mr. Schwing.

On October 24, 2000, the district court issued a judgment together with a supporting legal opinion. The court awarded Mr. Schwing a total of $8,106.62, which sum represented the value of his property used for the servitude.

Concha filed a Motion for New Trial on October 30, 2000, requesting that the award of $8,106.62 to Mr. Schwing be vacated. The Motion for New Trial was granted and by judgment dated March 7, 2001, the district court amended its earlier judgment and awarded Mr. Schwing the sum of $1,846.80, for his 1.319 percent interest in the Schwing family's 368.74 rods of the pipeline.

From this judgment, Mr. Schwing has appealed.

ISSUE ON APPEAL

The sole issue put forth by Mr. Schwing in this appeal is:

*545 1. Whether the trial court's failure to award damages for trespass was incorrect and whether an award of trespass damages is appropriate.

DISCUSSION

The Louisiana Constitution of 1974 provides that the appellate jurisdiction of the courts of appeal extends to both law and facts. La. Const., art. V, § 10(B). A court of appeal may not overturn a judgment of a trial court absent an error of law or a factual finding that is manifestly erroneous or clearly wrong. See Stobart v. State, Department of Transportation and Development, 617 So.2d 880, 882, n. 2 (La.1993). In an expropriation proceeding, the factfinder's factual determinations as to value of property and entitlement to any other types of damages will not be disturbed upon review in the absence of manifest error. State, Department of Transportation and Development v. Estate of Davis, 572 So.2d 39, 45 (La. 1990). The trial court is granted a great deal of discretion in determining the value of property in expropriation cases. See State, Department of Transportation and Development v. Mayet, 521 So.2d 671, 673 (La.App. 1 Cir.1988).

Expropriation of private property for public purposes is addressed in Article 1, Section 4 of the Louisiana Constitution of 1974, which provides in pertinent part, as follows:

Property shall not be taken or damaged by the state or its political subdivisions except for public purposes and with just compensation paid to the owner or into court for his benefit. Property shall not be taken or damaged by any private entity authorized by law to expropriate, except for a public and necessary purpose and with just compensation paid to the owner; in such proceedings, whether the purpose is public and necessary shall be a judicial question. In every expropriation, a party has the right to trial by jury to determine compensation, and the owner shall be compensated to the full extent of his loss.

In addition, Louisiana Revised Statute 45:254 provides:

Expropriation; telegraph and telephone lines; utilizing streams, highways, etc.

All persons included in the definition of common carrier pipe lines as set forth in R.S. 45:251[1]

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835 So. 2d 543, 2001 La.App. 1 Cir. 2093, 2002 La. App. LEXIS 2824, 2002 WL 31235499, Counsel Stack Legal Research, https://law.counselstack.com/opinion/concha-chemical-pipeline-v-schwing-lactapp-2002.