Continental Pipe Line Co. v. Irwin Livestock Co.

625 P.2d 214, 25 A.L.R. 4th 607, 1981 Wyo. LEXIS 307
CourtWyoming Supreme Court
DecidedMarch 20, 1981
Docket5391
StatusPublished
Cited by10 cases

This text of 625 P.2d 214 (Continental Pipe Line Co. v. Irwin Livestock Co.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Continental Pipe Line Co. v. Irwin Livestock Co., 625 P.2d 214, 25 A.L.R. 4th 607, 1981 Wyo. LEXIS 307 (Wyo. 1981).

Opinion

ROONEY, Justice.

Appellant instituted eminent domain proceedings pursuant to § 1-26-303, W.S.1977, 1 for a nonexclusive easement on 22 miles of existing roads across the grazing lands of appellee Irwin Livestock Company and of appellee Jake Johnson, Inc. (hereinafter referred to as “appellees”) 2 for the purpose of operational and maintenance access to pipeline facilities. The jury verdict and the resulting judgment awarded appellees $46,-886.40 as just compensation for the lands taken and affected by condemnation.

In appealing from such judgment, appellant words the issue for review as follows:

“Whether the Judgment with reference to the resulting damages was speculative, as well as conjectural, excessive and beyond the amount of any of the defined evidence which would justify its entry.”

We find that the jury could not have made a proper award of just compensation under the evidence as presented and with the form of verdict as submitted. Accordingly, we reverse and remand for a new jury trial.

BACKGROUND

In the early 1970’s, there was a discovery of substantial oil deposits beneath grazing land owned by appellees. 3 Development of the oil wells resulted in the establishment of a number of access roads over the lands of appellees for use by the entities involved in such devolpment. Appellees had granted *216 nonexclusive easements for use of these roads to such entities other than appellant. Appellant is an oil pipeline utility, and it extended its pipeline to service the oil wells on appellees’ lands. However, appellant and appellees could not reach an agreement for easements similar to those granted to the other entities and appellant began two eminent domain actions, one against appel-lees Irwin Livestock Company and Wyoming Farm Loan Board, and one against appellee Jake Johnson, Inc. The two actions were subsequently combined. 4 The parties reached an agreement relative to an easement for the pipeline itself, but the condemnation actions continued relative to the use of the access roads which were already in existence and subject to easement for use by other entities engaged in the oil field activities. After a jury trial, the following verdict form was submitted to the jury:

“VERDICT

“We the Jury, duly empaneled and sworn to try the above-entitled case, do hereby ascertain and certify compensation as follows:
“A. The fair market value of lands used as the roadways as of the 18th day of August, 1978 as actually taken and used by the Plaintiff as a non-exclusive right to use an existing road to reach the oil development area is per rod $_
“B. The resulting damage, if any, to the acreage adjacent to the roadway on ranch land of Defendants [sic] properties by the Plaintiffs’ [sic] non-exclusive use is determined to be $_per rod.”

The jury inserted the figures 0.20 in Paragraph A and the figures 6.46 in Paragraph B. Multiplying these figures by the 22 miles of access roads produces the $46,-886.40 damage amount of the judgment.

MEASURE OF DAMAGES

The measure of damages for a taking in eminent domain by a pipeline company is set forth in § 1-26-303, W.S.1977 (supra at footnote 1). The pertinent portion reads:

“ * * * The compensation to be made to the owners or parties interested for the lands, real estate or claims to be taken or affected, as well as all damages accruing to the owners or [of] the lands, real estate, right-of-way, or claims, taken or injuriously affected as aforesaid, with deduction or allowance for the real benefits or advantages which the owners or parties interested may derive from the construction of the road, ditch, flume, pipe, telegraph or telephone line, or necessary appurtenances shall be considered in the assessment of damages for the condemnation in these proceedings.”

We have held that where there is a partial taking of property, as here, which will result in damages to the remainder not taken, the amount of just compensation to be awarded for that “taken or affected” is determined by application of the “before and after” rule, i. e. just compensation is the difference between the fair market value of the entire parcel before the taking and that after the taking. City of Rawlins v. Jungquist, 16 Wyo. 403, 94 P. 464, 468, 96 P. 144 (1908); Gillespie v. Board of Com'rs of Albany County, 47 Wyo. 1, 30 P.2d 797, 803 (1934); Colorado Interstate Gas Company v. Uinta Development Company, Wyo., 364 P.2d 655, 658 (1961); Wyoming State Highway Department v. Napolitano, Wyo., 578 P.2d 1342, 1346 (1978). See 4A Nichols on Eminent Domain § 14.232 (1979); Orgel on Valuation under Eminent Domain § 64 (1953).

The testimony in this case did not contain even one “before and after” valuation. The greater portion of the testimony of appel-lees’ witnesses was devoted to harm caused by the intrusion of the several oil companies operating in the area. This was said to have caused appellee Irwin Livestock Company to cease the sheep aspect of its operation. Appellee Jake Johnson, Inc. did not have a sheep operation. The testimony out *217 lined problems with weight loss, bummed lambs, trampled grass, excessive wear on animals’ teeth from feeding on dust-covered grass, cattle movement to follow vehicles in expectation of feed, and overgrazing in areas nonadjacent to the roads — all resulting from the vehicular traffic on the roads. The problems were associated with oil activity generally and not to the road use by appellant. There was no separation of the extent or intensity of the problems between the time immediately before the date of taking by appellant, i. e., August 18, 1978, and the time after such taking.

Appellees presented testimony of four witnesses. One was president of ap-pellee Irwin Livestock Company, one was president of Jake Johnson, Inc., and the other two were neighboring ranchers. The presidents of the two appellees, as owners of the condemned lands, were entitled to give their opinions of the land values. They did not do so. They and one of the other witnesses testified to a sale of nearly “similar” land and gave the per acre price of $100.00 to $125.00 for which it was sold, the details of the sale were not set forth, and the record is not specific as to whether or not they were testifying to the same sale. The other witness testified to having bid $113.00 per acre for “similar” land without making a purchase and to having refused an offer of $87.00 per acre for “similar” land. 5 He gave an opinion that oil activity would reduce land value by 25 to 30 percent.

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Bluebook (online)
625 P.2d 214, 25 A.L.R. 4th 607, 1981 Wyo. LEXIS 307, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-pipe-line-co-v-irwin-livestock-co-wyo-1981.