Enbridge Pipeline (Illinois), LLC v. Hoke

2017 IL App (4th) 150544
Appellate Court of Illinois·Decided August 22, 2017·No. 4-15-05444-15-0545 cons.·Published·Cited by 13 cases

Opinion

Digitally signed by Reporter of Decisions Illinois Official Reports Reason: I attest to the accuracy and integrity of this document Appellate Court Date: 2017.08.17 13:12:12 -05'00'

Enbridge Pipeline (Illinois), LLC v. Hoke, 2017 IL App (4th) 150544

Appellate Court ENBRIDGE PIPELINE (ILLINOIS), LLC, n/k/a Illinois Extension Caption Pipeline Company, LLC, Plaintiff-Appellee, v. EDWARD HOKE, SONNA H. HOKE, NON-RECORD CLAIMANTS, and UNKNOWN OWNERS, Defendants-Appellants.—ENBRIDGE PIPELINE (ILLINOIS), LLC, n/k/a Illinois Extension Pipeline Company, LLC, Plaintiff-Appellee, v. PMC FARMS, LLC; CHARLES MURPHY, Tenant; NON-RECORD CLAIMANTS; and UNKNOWN OWNERS, Defendants-Appellants.

District & No. Fourth District Docket Nos. 4-15-0544, 4-15-0545 cons.

Filed July 6, 2017

Decision Under Appeal from the Circuit Court of De Witt County, Nos. 14-ED-3, Review 14-ED-4; the Hon. William Hugh Finson, Judge, presiding.

Judgment Vacated; cause remanded with directions.

Counsel on Thomas J. Pliura, of LeRoy, for appellants. Appeal Gerald A. Ambrose, Steven J. Horowitz, Dale E. Thomas, and Brian A. McAleenan, of Sidley Austin LLP, of Chicago, and Jacob E. Gancarczyk and John M. Spesia, of Spesia & Ayers, of Joliet, for appellee. Panel JUSTICE STEIGMANN delivered the judgment of the court, with opinion. Justices Holder White and Pope concurred in the judgment and opinion.

OPINION

¶1 In April 2014, the Illinois Commerce Commission (Commission) granted plaintiff, Enbridge Pipeline (Illinois), LLC, now known as the Illinois Extension Pipeline Company (IEPC), eminent-domain authority to acquire easements over certain real estate for the planned construction of an approximately 170-mile liquid petroleum (oil) pipeline known as the Southern Access Extension (SAX project). ¶2 In July and August 2014, IEPC filed separate complaints for “condemnation of permanent and temporary easements for common-carrier pipeline” against defendants (1) Edward Hoke and Sonna H. Hoke (Hokes) (DeWitt County case No. 14-ED-3; this court’s case No. 4-15-0544) and (2) PMC Farms, LLC, and its tenant, Charles Murphy, (PMC) (DeWitt County case No. 14-ED-4 and this court’s case No. 4-15-0545) (collectively, landowners). Through its condemnation filing, IEPC sought to obtain right-of-way and easement interests in landowners’ respective properties and determine just compensation for both interests. Thereafter, landowners each filed a “traverse and motion to dismiss” (traverse motions), requesting dismissal of IEPC’s condemnation complaints. In December 2014, the trial court denied both traverse motions. ¶3 At a jury trial that began in May 2015, IEPC presented its case-in-chief. Thereafter, the trial court permitted IEPC to conduct a voir dire inquiry of Edward and Charles out of the jury’s presence. Immediately following IEPC’s inquiry, the court granted IEPC’s motion to bar the testimony of Edward and Charles regarding the (1) fair-market value of their properties before and after installation of the SAX project and (2) damages incurred to the value of their remaining property after completion of the SAX project. The court also granted IEPC’s oral motion to exclude landowners’ expert’s valuation testimony pursuant to Illinois Supreme Court Rule 213(g) (eff. Jan. 1, 2007) because the expert failed to disclose the basis for his valuation opinions as required by Illinois Supreme Court Rule 213(f)(3) (eff. Jan. 1, 2007). IEPC then moved for directed verdicts on its condemnation suits. Following argument, the court (1) granted directed verdicts in IEPC’s favor and (2) awarded landowners compensation of $8500 in case No. 14-ED-3 and $2000 in case No. 14-ED-4. ¶4 Landowners appeal, raising numerous claims that challenge the trial court’s rulings. For the reasons that follow, we vacate the trial court’s denial of landowners’ traverse motions and remand with directions for further proceedings.

¶5 I. BACKGROUND ¶6 A. Procedural History ¶7 We provide the following synopsis of the pertinent litigation involving the SAX project to place landowners’ appeal in context.

-2- ¶8 1. IEPC’s Application for a Certificate in Good Standing and Eminent-Domain Authority ¶9 In August 2007, IEPC applied for a certificate in good standing and other relief pursuant to section 15-401 of the Common Carrier by Pipeline Law (Pipeline Law) (220 ILCS 5/15-401 (West 2006)). (The Pipeline Law appears under article XV of the Public Utilities Act (220 ILCS 5/1-101 to 20-120 (West 2006)).) IEPC sought the Commission’s authorization to (1) construct, operate, and maintain the SAX project and (2) acquire, when necessary, private property under eminent-domain authority to install and maintain the SAX project as permitted by section 8-509 of the Public Utilities Act (220 ILCS 5/8-509 (West 2006)). IEPC described the proposed SAX project as a 36-inch diameter underground oil pipeline, originating from IEPC’s Flanagan terminal located near Pontiac, Illinois, and terminating approximately 170 miles south, at IEPC’s Patoka terminal located near Patoka, Illinois. The planned SAX project traversed 679 tracts of land located in the counties of Livingston, McLean, DeWitt, Macon, Shelby, Christian, Fayette, and Marion. Specifically, IEPC sought (1) a 60-foot wide permanent easement right-of-way for the pipeline and (2) an additional 60-foot temporary easement to facilitate construction. ¶ 10 In July 2009, the Commission issued an order in docket No. 07-0446, granting IEPC a certificate in good standing but denying IEPC’s request for eminent-domain authority. As to eminent domain, the Commission instead urged that IEPC continue negotiations with landowners who had declined the compensation IEPC had offered in exchange for the aforementioned easements on the landowners’ respective properties. The Commission’s order provided, however, that IEPC could renew its request for eminent-domain authority by “demonstrating that it has made reasonable attempts to obtain easements, through good-faith negotiations.” ¶ 11 Some affected landowners (intervenors) appealed the Commission’s grant of the certificate in good standing, and this court affirmed. Pliura Intervenors v. Illinois Commerce Comm’n, 405 Ill. App. 3d 199, 200, 942 N.E.2d 576, 578 (2010) (Intervenors I). Specifically, we rejected intervenors’ argument that the Commission erred by determining that (1) IEPC was fit, willing, and able to construct, operate, and maintain an oil pipeline and (2) a public need existed for the pipeline. Id. at 208-09, 942 N.E.2d at 584-85. The Supreme Court of Illinois later denied intervenors’ petition for leave to appeal. Pliura Intervenors v. Illinois Commerce Comm’n, 239 Ill. 2d 589, 943 N.E.2d 1108 (2011) (table).

¶ 12 2. IEPC’s Renewed Petition for Eminent-Domain Authority ¶ 13 In July 2013, IEPC renewed its request for eminent-domain authority, seeking to condemn 148 of the 679 tracts of land traversed by the planned SAX project route because the owners of those respective properties had either (1) refused to negotiate with IEPC or (2) declined IEPC’s compensation offers despite extensive negotiations. (IEPC’s continued negotiations reduced the number of “holdout” landowners from 148 to 127, meaning approximately 81% of landowners had reached an agreement with IEPC.) ¶ 14 In December 2013, an administrative law judge (ALJ) conducted a hearing on IEPC’s request for eminent-domain authority.

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2017 IL App (4th) 150544 (Appellate Court of Illinois, 2017)