Enbridge Energy v. Fry

2017 IL App (3d) 150765
Appellate Court of Illinois·Decided July 28, 2017·No. 3-15-0765·Published·Cited by 13 cases

Opinion

Digitally signed by Reporter of Decisions Reason: I attest to the

Illinois Official Reports accuracy and integrity of this document

Appellate Court Date: 2017.07.28 08:46:08 -05'00'

Enbridge Energy, Ltd. Partnership v. Fry, 2017 IL App (3d) 150765

Appellate Court ENBRIDGE ENERGY, LIMITED PARTNERSHIP, Caption Plaintiff-Appellee, v. ROCHELLE M. FRY, DOUG RIECKE, JOHN RIECKE, NON-RECORD CLAIMANTS AND UNKNOWN OWNERS, Defendants-Appellants, and BERNADETTE A. LAMORE, ANYA M. BAUER, NON-RECORD CLAIMANTS AND UNKNOWN OWNERS, Defendants-Appellants.

District & No. Third District Docket No. 3-15-0765

Filed April 6, 2017

Decision Under Appeal from the Circuit Court of Kankakee County, Nos. 14-ED-4, Review 14-ED-8; the Hon. Adrienne W. Albrecht, and the Hon. Ronald J.

Gerts, Judges, presiding.

Judgment Affirmed.

Counsel on Thomas J. Pliura and Kathleen Chmielewski, of Law Office of Appeal Thomas J. Pliura, of LeRoy, for appellants.

John M. Spesia and Jacob E. Gancarczyk, of Spesia & Ayers, of Joliet, and Gerald A. Ambrose, of Sidley Austin LLP, of Chicago, for appellee.

Panel JUSTICE CARTER delivered the judgment of the court, with opinion.

Presiding Justice Holdridge and Justice Lytton concurred in the judgment and opinion.

OPINION

¶1 Plaintiff, Enbridge Energy, Limited Partnership, (Enbridge) filed a condemnation suit to obtain easement rights over certain farmland in Kankakee County so that it could build and operate a new underground pipeline. The landowner defendants opposed the suit for condemnation and filed a traverse and motion to dismiss (traverse motion), which the trial court denied. A jury trial was later held on the condemnation complaint, and a directed verdict was entered for Enbridge as to the amount of just compensation it was required to pay to the landowners. The landowners appeal, raising numerous issues. We affirm the trial court’s judgment.

¶2 FACTS

¶3 In April 2014, the Illinois Commerce Commission (ICC) granted Enbridge a certificate of public convenience and necessity to build and operate a new underground liquid petroleum pipeline from Pontiac, Illinois, to Griffith, Indiana. The new pipeline was to be known as “Line 78” and was to run across several properties in Livingston, Grundy, Kankakee, Will, and Cook Counties. For the most part, the path of Line 78 was to run parallel to and in close proximity with an existing Enbridge pipeline—Line 62. To obtain the necessary easement rights for Line 78, Enbridge was granted eminent domain authority by the ICC.

¶4 Prior to filing the instant lawsuit, Enbridge negotiated settlements with many of the landowners involved. As to those landowners with whom Enbridge could not reach an agreement on just compensation, Enbridge filed condemnation complaints in the trial court. The complaints (collectively referred to hereinafter as the complaint) were later consolidated. A copy of the ICC order was attached to the complaint. Three of the landowners who did not settle with Enbridge were named as defendants in the instant case. The dispute involved two pieces of farmland in Kankakee County—the Fry property, owned by Rochelle Fry, and the Bauer-Lamore property, owned by Anya Bauer and Bernadette Lamore. In the trial court, Fry, Bauer, and Lamore were represented by the same attorney, who now represents all three of them in this appeal.

¶5 In response to the condemnation complaint, Fry filed a traverse motion, alleging, among other things, that Enbridge lacked proper eminent domain authority, that there was no public use or necessity for the pipeline, and that Enbridge had failed to negotiate with the landowners in good faith prior to filing the condemnation suit. A similar traverse motion was later filed on behalf of Bauer and Lamore. Enbridge responded to Fry’s traverse motion and attached to its response sworn testimony, affidavits, and business records. Those supporting documents established that Enbridge had made numerous attempts to communicate with the landowners about the easements and the pipeline project. Written offers for easement rights were made to Fry in August 2013 and April 2014 and to Bauer and Lamore in April 2013 and October 2013. The supporting documents also showed that in making its offers to the landowners, Enbridge

had been advised by a licensed real estate appraiser who had conducted a land market study in the counties that were going to be impacted by the pipeline.

¶6 Unable to reach an agreement with the three landowners, Enbridge sent a final offer letter to Fry in May 2014 and to Bauer and Lamore in June 2014. The final offer letter was also sent to the landowners’ attorney. In that final offer letter, Enbridge offered to pay Fry approximately $51,000 as just compensation and to pay Bauer and Lamore approximately $57,000. A receipt detailing the basis for the offer was provided to all three landowners and their attorney. The final offer was set to expire approximately 11 days from the date of the letter. In addition, Enbridge stated in the letter that it would file an eminent domain action if the final offer was not accepted. None of the three landowners or their attorney responded to those final offers.

¶7 A status hearing was held in September 2014, and Fry’s traverse motion was set for hearing. When the landowners’ attorney told the trial court that he would need some time for discovery, the trial judge responded that, as a general matter, she did not postpone hearings on a motion to dismiss pending discovery but that if the issue arose, she “certainly [could] recess the hearing and give—allow time for discovery.” In the 90 days between the filing of Fry’s traverse motion and the date of the hearing on the motion, the landowners did not notice or subpoena any depositions, attempt to compel the appearance of any witnesses or the production of any documents at the hearing, or attempt to obtain any rulings from the trial court on any discovery matter related to the traverse motion.

¶8 In October 2014, a hearing was held on Fry’s traverse motion. At the outset of the hearing, the trial judge acknowledged that a motion had been faxed to the court by the landowners’ attorney requesting additional time to conduct discovery. The landowners’ attorney indicated in court that he had filed a memorandum on the matter. Despite the request for more time, the trial court went forward with the hearing. The landowners’ attorney stated that he was ready to call witnesses but did not seek to do so and did not disclose to the court who those witnesses were or what their testimony would be. Ultimately, although the trial court did not preclude either party from calling witnesses, no witnesses were presented by either side, and the trial court made its ruling on Fry’s traverse motion based solely upon the pleadings and supporting documents. After considering those documents, researching the matter, and listening to the arguments of the attorneys, the trial court denied Fry’s traverse motion, finding that there was nothing presented to challenge the rebuttable presumption of public use and necessity created by the ICC’s order or any evidence presented to refute Enbridge’s showing that its offer was made in good faith. Because Bauer and Lamore’s traverse motion was essentially identical to that of Fry, the same ruling by the trial court was later applied to that motion as well.

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