Duke Energy of Indiana, LLC v. City of Franklin, Indiana

69 N.E.3d 471, 2016 Ind. App. LEXIS 452, 2016 WL 7333575
Indiana Court of Appeals·Decided December 16, 2016·No. 41A01-1607-CT-1549·Published·Cited by 9 cases

Opinion

BRADFORD, Judge.

Case Summary

Appellee-Defendant the City of Franklin, Indiana (“the City”), in cooperation with the State, has proposed a plan to revitalize and improve a stretch of Indiana State Road 44 (“SR 44”) that serves a major east-west artery (“the Traffic Plan”). The Traffic Plan includes, inter alia, a proposal to connect the three-way intersection of County Club Lane and Longest Drive (“the Intersection”) to SR 44. Appellanb-Plaintiff Duke Energy of Indiana, ETC (“Duke”) holds a utility easement in the land underneath the proposed Intersection expansion and requested a preliminary injunction to prevent the City from completing the expansion of the Intersection, contending the City lacks sufficient property rights to allow it to do so and that the expansion would impermissi-bly interfere with its easement rights. The trial court denied Duke’s request for a preliminary injunction, and Duke now appeals. Because we conclude that Duke lacks standing to challenge the City’s property interests in the real estate at issue and that the trial court did not abuse its discretion in concluding that Duke does not have a reasonable probability of success at trial, we affirm.

Facts and Procedural History

The following excerpted diagram, submitted in un-excerpted form as Plaintiffs Exhibit 13, is helpful to understanding the issues presented by this case.

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*474 For a stretch in the City, Longest Drive and SR 44 (a/k/a King Street) run generally east-west and parallel, with Longest Drive being intersected by County Club Lane at the Intersection. Duke holds the Easement, which runs north-south, encompasses the Intersection, and includes utility pole 825-4181, which is adjacent to and just northwest of the Intersection. The Easement grants Duke the right to “construct, operate, patrol, maintain, reconstruct and remove an electric line, including necessary poles, wires, and fixtures attached thereto, for the transmission of electrical energy!.]” Plaintiffs Exs. 18,19.

At issue is the Traffic Plan, by which the City intends to improve SR 44 between SR 144 on the west side and 1-65 on the east. The Traffic Plan includes a proposal to provide access to SR 44 from the Intersection, as shown below:

[[Image here]]

Plaintiffs Ex. 11 (exceipt).

Early in 2016, the City presented Duke with the Traffic Plan, and Duke informed the City that it believed that the expansion of the Intersection would unreasonably interfere with its easement rights. On June 7, 2016, Duke filed for a preliminary injunction to prevent the City from constructing the proposed expansion of the Intersection. The next day, the trial court entered a temporary restraining order—by which the City agreed to abide—pending *475 resolution of the preliminary injunction issue. On July 5, 2016, the trial court denied Duke’s request for a preliminary injunction, ruling that Duke had failed to establish unreasonable interference with its easement rights. On this basis, the trial court concluded that Duke had failed to show a reasonable likelihood of success at trial and so denied Duke’s request for a preliminary injunction. The trial court’s order provides, in part, as follows:

5. The City’s project ... is designed to enhance the visual appearance of [SR 44] so as to encourage development on the east side of Franklin and to provide an attractive area for travelers on 1-65 to stop for food and lodging. By [its] design, the project is meant to slow traffic on [SR 44],
6. In the area of Country Club Lane, [SR 44] is now a well traveled limited access four lane highway. [SR 44] connects Franklin to Interstate 65, which is a major north-south divided access highway. ...
7. As part of the roadway improvement project, the City is opening access to Country Club Fane from both lanes of travel on [SR 44].... A stop sign will be added for eastbound traffic at Longest Drive that is entering Country Club Fane. A stop sign already exists for westbound traffic at Longest Drive and Country Club Lane.
8. Mayor McGuinness opined that opening and closing of access points from [SR 44] is designed to separate the commercial and residential uses of property along [SR 44] and to remove commercial traffic from residential streets.
9. City Engineer, Travis Underhill, testified that part of the goal of the overall corridor project is to safely manage increased traffic in the area and plan for future traffic and anticipated development. Mr. Underhill testified that from an engineering standpoint and safety standpoint, it is desirable to reduce commercial traffic through residential neighborhoods and that the direct access routes as proposed will reduce conflict points for motorists.
10. A report prepared by HWC Engineering states that the change in access to [SR 44] is “to promote more efficient traffic movements along [SR 44]”. Exhibit 6.
11. Country Club Lane provides access to a private country club known as Hillview Country Club. A tenant at Hill-view Countiy Club is a public restaurant known as Scotty’s Brew[house]. Scotty’s Brew[house] opened in October of 2015. At all times relevant, a restaurant has been located at Hillview Country Club for the use of [its] members prior to the opening of the public restaurant. Country Club Lane is a private roadway. ...
12. [SR 44] has existed on the east side of the City at all times relevant. [SR 44] connects Franklin with the City of Shelbyville to the east and the City of Martinsville to the west. Prior to 1970, [SR 44] was a two lane roadway. Access to Hillview Country Club was gained directly from [SR 44]. In 1970, the State of Indiana converted [SR 44] to a four lane limited access highway from 1-65 to the older residential area on the eastside of Franklin. [SR 44] was shifted to the south. A new road, Longest Drive, was created to the north of [SR 44]. Longest Drive is generally an east-west access road that is parallel to [SR 44]. Access to Longest Drive was gained to the west of Country Club Lane at a short access road known as Milford Drive. A portion of Longest Drive was constructed on the roadbed of the pre-1970 [SR 44].
*476 13. After the 1970 redesign, traffic to Hillview Country Club was required to exit [SR 44] on the north side at Milford Drive, immediately turn right onto Longest Drive, proceed east on Longest Drive to Country Club Lane and turn left or noi'th onto Country Club Lane. Country Club Lane could not be accessed directly from [SR 44]. Longest Drive and [SR 44] were separated by a grassy strip.

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Duke Energy of Indiana, LLC v. City of Franklin, Indiana, 69 N.E.3d 471, 2016 Ind. App. LEXIS 452, 2016 WL 7333575 (Ind. Ct. App. 2016).

69 N.E.3d 471 (Duke Energy of Indiana, LLC v. City of Franklin, Indiana) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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