In re Condemnation by PPL Electric Utilities Corp. of Real Estate Situate in Schuylkill County

68 A.3d 15, 2013 WL 1891399, 2013 Pa. Commw. LEXIS 134
CourtCommonwealth Court of Pennsylvania
DecidedMay 8, 2013
StatusPublished
Cited by4 cases

This text of 68 A.3d 15 (In re Condemnation by PPL Electric Utilities Corp. of Real Estate Situate in Schuylkill County) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Condemnation by PPL Electric Utilities Corp. of Real Estate Situate in Schuylkill County, 68 A.3d 15, 2013 WL 1891399, 2013 Pa. Commw. LEXIS 134 (Pa. Ct. App. 2013).

Opinion

OPINION BY

Judge COHN JUBELIRER.

WMPI Land Corp. (WMPI) appeals from the Order of the Court of Common Pleas of Schuylkill County (trial court) overruling and dismissing WMPI’s Preliminary Objection to the Notice of Filing of Declaration of Condemnation filed by PPL Electric Utilities Corporation (PPL) and the Declaration of Taking (Declaration) condemning WMPI’s land for a perpetual easement and right-of-way to construct, operate, and maintain lines and facilities for the distribution of electricity. On appeal, WMPI argues that the trial court erred by dismissing its Preliminary Objection because PPL was required to comply with the procedural requirements set forth in Section 1511 of the Associations Code1 by seeking approval from the Public Utility Commission (PUC) prior to condemning WMPI’s land for the perpetual easement and right-of-way.

WMPI is a Pennsylvania corporation engaged in leasing land for coal mining operations, and the owner of a certain tract of land in the Borough of Gilberton, Schuylkill County, Pennsylvania. WMPI acknowledges that electric distribution facilities consisting of poles and an overhead power line presently exist upon this tract of land that were previously installed by PPL pursuant to an expired right-of-way agreement dated July 9, 1982 (Agreement) between WMPI’s predecessor in title and Pennsylvania Power & Light, now PPL.

On January 24, 2011, pursuant to Section 1511(a)(3) of the Associations Code, PPL filed its Declaration. The Declaration provides that PPL is taking the following interest in WMPI’s property:

[17]*17[a] perpetual easement and right-of-way to construct, operate and maintain and from time to time to reconstruct overhead and underground electric distribution lines, including, but not limited to, such poles, towers, guys, cables, wires, fiber optics, fixtures and apparatus above and below the ground (hereinafter referred to as “Electric Facilities”) that may from time to time be necessary for the convenient transaction of the business of the Condemnor ... also the right to remove any buildings or structures from the property ... it being understood that Condemnor ... shall not be limited in its ... enjoyment of the aforesaid rights to such Electric Facilities as may be now constructed on the property, but shall have, at all times in the future, the right to construct, operate and maintain, and from time to time reconstruct additional Electric Facilities of any type necessary for the convenient transaction of the business of Condemnor upon, across, under, along or within the property.

(Declaration at ¶ 8, R.R. at 13-14.)

On February 17, 2011, WMPI filed Preliminary Objections2 stating that: (1) PPL did not comply with the procedural requirements set forth in Section 1511 of the Associations Code by seeking approval from the PUC prior to condemning WMPI’s land and PPL’s failure to do so nullifies the Declaration and requires its dismissal; (2) the Declaration lacks specificity about the property to be condemned; and (3) PPL failed to name an indispensable party. (Preliminary Objections ¶¶ 6-25, R.R. at 33-35.) Stating that there was an issue of fact regarding whether the Declaration concerned existing or new electrical facilities, and that because the latter required PUC approval, the trial court ordered depositions to take evidence on this issue.3 (Trial Ct. Order, April 1, 2011, at 1-2.)

In the depositions, John J. Kelhart, PPL’s Supervisor of Land Acquisition, testified that he reviewed the plans that accompanied the Declaration, that all of the facilities that are the subject of the Declaration are existing distribution facilities and have been for many years, and acknowledged that these facilities consist of poles and overhead distribution lines. (Kelhart’s Dep., May 25, 2011, at 6-8, 17-18, 40, R.R. at 70-72, 75.) Daniel Benedict, PPL’s Distribution Design Supervisor, testified that the existing facilities on WMPI’s land are distribution facilities, that PPL does not seek permission from the PUC to move or construct distribution lines, and PPL has no present plans for construction of new facilities. However, Mr. Benedict stated that “[a]ny facilities that are currently existing could need to be relocated in some form, which would basically produce new facilities in place” and acknowledged that “electric facilities can mean a whole host of different things for PPL” other than the electrical facilities presently existing on WMPI’s land. (Benedict’s Dep. at 19-21, R.R. at 106-08.) Mr. Benedict admitted that the Declaration authorizes PPL to construct other facilities, such as transmission lines, substations, and even fiber optics which do not relate to electricity, but to communications. (Benedict’s Dep. at 16-17, R.R. at [18]*18103-04.) Mark K. Wolfe, Controller of WMPI, acknowledged that he had no awareness, notice, or basis to conclude that PPL presently seeks to erect any additional facilities. (Wolfe’s Dep. at 17, R.R. at 135.)

On January 17, 2012, during oral argument on the Preliminary Objections, WMPI withdrew all except one objection: that PPL did not comply with the procedural requirements set forth in Section 1511(c) of the Associations Code. (Preliminary Objections ¶ 7, R.R. at 33; Trial Ct. Op. at 1.) After a stay requested by the parties and the unsuccessful attempt to settle this matter, the trial court issued an Opinion and Order overruling WMPI’s Preliminary Objection on June 27, 2012. In its Opinion, the trial court concluded that PPL was “not taking the land in this case for the purpose of erecting or putting in place new facilities,” but rather for the purpose of operating and maintaining existing lines and facilities for the distribution, not transmission, of electricity.4 (Trial Ct. Op. at 4.) (Emphasis in original.) The trial court stated that compliance with Section 1511(e) was not required in this case based upon the consistent representations of PPL, and a “reasonable interpretation of the language of the Declaration.” (Trial Ct. Op. at 4.) This appeal followed.5

On appeal, WMPI argues that Section 1511(c) requires the PUC’s prior approval before PPL can condemn WMPI’s land and PPL did not seek that approval here. WMPI maintains that the trial court’s reliance upon PPL’s present intentions to condemn a perpetual easement and right-of-way on WMPI’s land only to maintain existing facilities is erroneous or an abuse of discretion because it is the Declaration, not intentions, that governs the terms of the condemnation. WMPI maintains that the language of the Declaration does not limit PPL to existing facilities — described by WMPI as presently a single wire and some poles — but gives PPL much broader authority, such as “at all times in the future, the right to construct, operate and maintain ... additional Electric Facilities of any type,” as “from time to time [may] be necessary for the convenient transaction of the business of [PPL],” including the right to erect new facilities, including fiber optic lines, and “the right to remove any buildings or structures from the property.” (Declaration ¶ 8, R.R. at 13-14.) WMPI argues that permitting this condemnation without PUC approval violates the public policy that is expressed via the protections afforded by Section 1511(c), contending that a different type of facility could be built on WMPI’s property without any opportunity for PUC consideration of whether this would be in the public interest.

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Bluebook (online)
68 A.3d 15, 2013 WL 1891399, 2013 Pa. Commw. LEXIS 134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-condemnation-by-ppl-electric-utilities-corp-of-real-estate-situate-pacommwct-2013.