Engelking v. Enbridge (U.S.), Inc.

2019 WI App 1, 923 N.W.2d 181, 385 Wis. 2d 212
CourtCourt of Appeals of Wisconsin
DecidedNovember 6, 2018
DocketAppeal No. 2017AP2450
StatusPublished

This text of 2019 WI App 1 (Engelking v. Enbridge (U.S.), Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Engelking v. Enbridge (U.S.), Inc., 2019 WI App 1, 923 N.W.2d 181, 385 Wis. 2d 212 (Wis. Ct. App. 2018).

Opinion

PER CURIAM.

¶ 1 Barbara and Jeremy Engelking appeal a judgment dismissing their claims against Enbridge (U.S.), Inc., Enbridge Energy, LP, and Enbridge Pipelines, (Southern Lights), LLC (collectively, Enbridge). The circuit court concluded that some of the Engelkings' claims were barred by the doctrine of claim preclusion, and it later determined Enbridge was entitled to summary judgment on the Engelkings' remaining claims. We conclude the court properly dismissed all of the Engelkings' claims against Enbridge. We therefore affirm.

BACKGROUND

¶ 2 This appeal involves a dispute regarding pipelines owned by Enbridge that traverse property owned by the Engelkings. The parties' dispute regarding the pipelines has been before us on two previous occasions. See Enbridge Energy, Ltd. P'ship v. Engelking , No. 2012AP1188, unpublished slip op. (WI App Mar. 12, 2013) (Enbridge I ); Enbridge Energy, Ltd. P'ship v. Engelking , No. 2015AP1346, unpublished slip op. (WI App Oct. 25, 2016) (Enbridge II ). In summarizing the relevant factual and procedural background, we rely, in part, on our previous opinions in Enbridge I and Enbridge II .

¶ 3 The Engelkings own a twenty-acre parcel of land in Douglas County. Enbridge I , No. 2012AP1188, ¶ 2; Enbridge II , No. 2015AP1346, ¶ 4. In 1949, the Engelkings' predecessor in title executed a "Right of Way Grant" (hereinafter, the 1949 Grant) conveying to Enbridge's predecessor "a right of way and easement for the purpose of laying, maintaining, operating, patrolling (including aerial patrol), altering, repairing, renewing and removing in whole or in part a pipe line for the transportation of crude petroleum, its products and derivatives, whether liquid or gaseous, and/or mixtures thereof." Between 1949 and 1967, Enbridge's predecessor constructed three pipelines (Lines 1, 2, and 3) across what is now the Engelkings' property, pursuant to the 1949 Grant. Enbridge II , No. 2015AP1346, ¶ 6. Enbridge constructed a fourth pipeline (Line 4) in 2002 and built two additional pipelines (Lines 5 and 6) in 2009. Id. , ¶ 8.

¶ 4 In July 2010, Enbridge filed suit against the Engelkings, alleging they had breached the terms of the 1949 Grant. Id. In response, the Engelkings filed numerous counterclaims against Enbridge. Enbridge I , No. 2012AP1188, ¶ 5. As relevant here, the Engelkings asserted trespass and ejectment counterclaims, based on allegations that Enbridge had constructed Lines 4, 5, and 6 outside the right-of-way created by the 1949 Grant. The circuit court dismissed the Engelkings' trespass and ejectment counterclaims, id. , ¶ 6, but we reversed those rulings in Enbridge I and remanded for further proceedings, id. , ¶ 1.

¶ 5 On remand, the circuit court chose to submit certain factual questions to an advisory jury. Enbridge II , No. 2015AP1346, ¶ 13. The jury ultimately found that the right-of-way over the Engelkings' property extended twenty-five feet on either side of Line 1. Id. , ¶ 15. The jury further found that the presence of Lines 4, 5, and 6 constituted a trespass on the Engelkings' property, and it awarded the Engelkings $150,000 in damages for the trespass. Id. , ¶ 17. However, the jury rejected the Engelkings' ejectment counterclaim, finding that Enbridge should not be required to remove Lines 4, 5, and 6. Id. The circuit court entered judgment on the jury's verdict, and both parties appealed. Id. , ¶¶ 18, 23-25. We affirmed the circuit court's judgment in all respects in Enbridge II . Id. , ¶ 3.

¶ 6 On June 29, 2015, while the Enbridge II appeal was pending, the Engelkings filed a separate lawsuit against Enbridge, which is the subject of this appeal. In their complaint, the Engelkings advanced two categories of claims. First, they asserted trespass and unjust enrichment claims based on the continued presence of Lines 4, 5, and 6 on their property (hereinafter, the future damages claims). Second, they asserted claims for breach of contract, trespass, declaratory judgment, and unjust enrichment, all on the grounds that Enbridge had violated the 1949 Grant by using Line 1 to transport natural gas liquids (NGLs) across their property (hereinafter, the Line 1 claims).

¶ 7 Enbridge moved to dismiss the Engelkings' complaint, arguing their claims were barred by the final judgment in the 2010 lawsuit, pursuant to the doctrine of claim preclusion and the common-law compulsory counterclaim rule. On September 10, 2015, the circuit court stayed proceedings on the Engelkings' claims, pending a decision from this court in Enbridge II . We issued that decision on October 25, 2016. See Enbridge II , No. 2015AP1346. During a subsequent hearing in the instant case on July 10, 2017, the circuit court granted Enbridge's motion to dismiss the Engelkings' future damages claims, concluding they were barred by the doctrine of claim preclusion. The court denied Enbridge's motion to dismiss the Line 1 claims.

¶ 8 Enbridge filed an answer as to the Line 1 claims on July 20, 2017. Seventy-five days later, on October 3, Enbridge moved for summary judgment on the Line 1 claims. Enbridge argued those claims failed, as a matter of law, because NGLs are derivatives of crude petroleum, and the 1949 Grant therefore permits Enbridge to transport them across the Engelkings' property. In support of this argument, Enbridge relied on an affidavit submitted by Ashok Anand, a chemical engineer and Enbridge employee. Anand averred, based on his education, training, and experience, that the NGLs Enbridge transports across the Engelkings' property "clearly are products or derivatives of crude petroleum." He explained:

The components of the NGL stream [transported through Line 1] can be derived from different sources, including one, all or any combination of the following production facilities: (a) crude oil production; (b) natural gas plants; and (c) crude oil refineries. Moreover, NGLs such as propane, butane and pentane plus that result from production of natural gas wells can be commingled with crude oil, and, as such, are considered part of crude petroleum, or they can [be] separated in gas plants and marketed as distinct components without being mixed with crude oil. Alternately, when crude oil is refined to produce various products such as gasoline, diesel, and jet fuel, the above components (propane, butanes, pentane plus) which are part of the crude oil are also produced and need to be transported to markets.

¶ 9 Anand further averred that, regardless of the "specific makeup" of the NGLs Enbridge transports, "as a matter of chemistry, [they] all are products or derivatives of crude petroleum which has been subject to mixing, processing, refining, pressurization or heating to reach the NGL form." Anand also opined that, at the time the 1949 Grant was drafted, "the term 'crude petroleum' was used generically to describe all of the hydrocarbons derived from oil and gas wells."

¶ 10 The Engelkings filed a brief in opposition to Enbridge's summary judgment motion on October 20, 2017. They argued Enbridge had failed to make a prima facie case for summary judgment because Anand's opinion regarding the oil and gas industry's use of the term "crude petroleum" in 1949 was unsupported by proper foundation. They also submitted various documents, which they asserted raised a genuine issue of material fact as to whether NGLs were considered to be crude petroleum derivatives in 1949.

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Bluebook (online)
2019 WI App 1, 923 N.W.2d 181, 385 Wis. 2d 212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/engelking-v-enbridge-us-inc-wisctapp-2018.