Enbridge Energy, Limited Partnership v. Village of Romeoville

2019 IL App (3d) 180060-U
Appellate Court of Illinois·Decided November 19, 2019·No. 3-18-0060·Unpublished

Opinion

NOTICE: This order was filed under Supreme Court Rule 23 and may not be cited as precedent by any party except in the limited circumstances allowed under Rule 23(e)(1).

2019 IL App (3d) 180060-U

Order filed November 19, 2019

IN THE

APPELLATE COURT OF ILLINOIS THIRD DISTRICT

2019

ENBRIDGE ENERGY, LIMITED ) Appeal from the Circuit Court PARTNERSHIP, a Delaware Limited ) of the 12th Judicial Circuit, Partnership, ) Will County, Illinois.

)

Plaintiff-Appellee/Cross-Appellant, )

)

v. )

)

VILLAGE OF ROMEOVILLE, an Illinois ) Municipal Corporation, and OLDCASTLE ) APG SOUTH, INC., d/b/a NORTHFIELD ) BLOCK COMPANY, a Delaware Corporation, )

) Appeal Nos. 3-18-0060

Defendants ) 3-18-0078 ) Circuit No. 11-L-727

(Village of Romeoville, an Illinois Municipal ) Corporation, )

)

Defendant-Appellee, )

)

and )

)

Oldcastle APG South, Inc., d/b/a Northfield ) Block Company, a Delaware Corporation, )

) Honorable Barbara N. Petrungaro, Defendant-Appellant/Cross-Appellee). ) Judge, Presiding.

PRESIDING JUSTICE SCHMIDT delivered the judgment of the court. Justices Carter and McDade concurred in the judgment.

ORDER

¶1 Held: The trial court erred by failing to grant judgment notwithstanding the verdict in favor of defendant, Northfield Block Company. The trial court did not err in granting summary judgment in favor of defendant, Village of Romeoville.

¶2 This case concerns a $45,491,625 judgment for damages resulting from the release of crude oil in Romeoville, Illinois, in favor of plaintiff, Enbridge Energy, Limited Partnership and against defendant, Oldcastle APG South, Inc., d/b/a Northfield Block Company, on a breach of contract claim.

¶3 Defendant raises multiple contentions on appeal, asserting that either reversal of the trial court’s denial of its motion for judgment notwithstanding the verdict or a new trial is required because (1) plaintiff’s breach of contract claim was based on evidence of improper installation of the water service line, which is barred by the statute of repose; (2) the trial court improperly admitted evidence of prior leaks in its water service line; (3) the jury found plaintiff failed to fulfill all of its obligations under the parties’ easement agreement; (4) the trial court erred by refusing to give a special interrogatory; and (5) the trial court erred by instructing the jury that defendant owed plaintiff a duty.

¶4 Plaintiff cross-appeals, maintaining that (1) the trial court erred in denying its request for prejudgment interest on its damages for breach of contract and (2) judgment should be entered in its favor on defendant’s affirmative defense of contributory negligence. In reply, defendant asserts that this court lacks jurisdiction to consider plaintiff’s cross-appeal concerning the jury’s contributory negligence verdict because (1) no judgment was ever entered on that verdict and (2) it is an impermissible contingent appeal.

¶5 Plaintiff also filed a contingent appeal as to a second defendant, the Village of Romeoville (Village), maintaining that the trial court erred in granting the Village’s renewed motion for summary judgment because disputed issues of material fact precluded it. However, plaintiff asserts that we need not consider its contingent appeal if we affirm the judgment against defendant.

¶6 We reverse in part and affirm in part.

¶7 I. BACKGROUND

¶8 At the outset, we note that the record in this case is voluminous. Further, the large size of the electronic documents makes it difficult to access the record and nearly impossible to navigate within each document once accessed. While we have reviewed the record, we rely largely on the parties’ recitation of the facts relevant to this appeal.

¶9 A. Factual Background and Pretrial Proceedings

¶ 10 Plaintiff operates crude oil pipelines throughout the United States. Defendant, a unit of Oldcastle, Inc., manufactures concrete products such as landscaping blocks.

¶ 11 In 1968, plaintiff assumed control of a 34-inch diameter high-grade steel, oil pipeline known as “Line 6A” installed earlier that year by its predecessor. The pipeline wall is over a quarter-inch thick and the exterior of the pipe is insulated with a tape coating. Line 6A runs from Superior, Wisconsin, to Griffith, Indiana, carrying 450,000 barrels of oil a day. Part of the pipeline passes through Romeoville, Illinois, pursuant to a written easement agreement entered into between the parties’ predecessors. The easement granted plaintiff a “right-of-way and perpetual easement to construct, operate, maintain, inspect (including aerial patrol), remove, replace and reconstruct one or more pipelines *** for the transportation of oil.” It also granted defendant “the right at any time to install parking lots, driveways, streets, utilities, drainage systems, sewers and water lines in, over, under and across the easement, provided such use of the right of way does not

unreasonably interfere with the operation of the pipelines.” The oil pipeline runs directly under the Village’s Parkwood Avenue, parallel to a water main owned and operated by the Village.

¶ 12 In 1977, defendant’s predecessor installed a six-inch diameter, ductile cast iron water service line with a cement lining to provide an industrial-level supply of water (85 pounds per square inch) to its building located at 717 Parkwood Avenue. The water service line is approximately 800 feet long with a majority of the line located on defendant’s property. The water service line ran perpendicular to and approximately six inches below plaintiff’s oil pipeline. In 1992, defendant purchased the property located at 717 Parkwood Avenue. In 2003, Oldcastle APG South, Inc., purchased defendant.

¶ 13 On the morning of September 9, 2010, a neighboring business of defendant reported a water leak on defendant’s driveway apron where it met Parkwood Avenue. A few hours later, witnesses observed crude oil bubbling to the surface at the same location. Once notified of the oil leak, plaintiff shut down its oil pipeline and sent crews to the scene to contain the leak. In the weeks and months that followed, plaintiff paid in excess of $40 million to remediate the oil leak.

¶ 14 When the oil and water pipelines were excavated, a 1½-inch hole was found on the bottom of the oil pipeline that was located directly above where defendant’s water service line crossed below the oil pipeline. The water service line was corroded and had three large holes directly below the hole on the oil pipeline.

¶ 15 In December 2013, plaintiff filed an eight-count second amended complaint against defendant and the Village raising claims of negligence (counts I, IV); negligent trespass (counts II, V); intentional trespass (counts III, VI); breach of contract (count VII); and fraud (count VIII). In relevant part, plaintiff claimed that defendant (1) neglected its duty to maintain its water line in a condition which would prevent damage to the property of others (count I); (2) negligently

trespassed when water from its water service line leaked into plaintiff’s right-of-way (count II); (3) intentionally trespassed into plaintiff’s right-of-way because defendant knew that its water service line had a “longstanding history” of leaking (count III); (4) breached the easement agreement when it impeded or interfered with plaintiff’s operation of the oil pipeline (count VII); and (5) submitted fraudulent invoices to plaintiff claiming that it had to close its manufacturing plant as a result of the oil spill (count VIII). Defendant denied all material allegations and asserted contributory negligence and failure to mitigate as affirmative defenses.

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