Laudermilch v. 730 Texas Timberlands, II, Ltd.

CourtDistrict Court, M.D. Pennsylvania
DecidedAugust 17, 2022
Docket4:22-cv-00423
StatusUnknown

This text of Laudermilch v. 730 Texas Timberlands, II, Ltd. (Laudermilch v. 730 Texas Timberlands, II, Ltd.) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Laudermilch v. 730 Texas Timberlands, II, Ltd., (M.D. Pa. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA

DAVID LAUDERMILCH; ERIC No. 4:22-CV-00423 ROD; and JOHN T. WOLFE, (Chief Judge Brann) Plaintiffs,

v.

730 TEXAS TIMBERLANDS, II, LTD.; and GREENWOOD RESOURCES, INC.,

Defendants.

MEMORANDUM OPINION

AUGUST 17, 2022 For more than forty years, select property owners in Potter County, Pennsylvania have granted owners of the 1,450 acres of working timberland adjacent to their land a “right-of-way” over their properties to access the timberland, which is otherwise landlocked. In exchange, the owners of the timberland assumed all responsibility for maintenance of the right-of-way. But the current owners of the individual properties believe that Defendants 730 Texas Timberlands, II, Ltd. and GreenWood Resources, Inc.—the owner of the timberland and the corporation contracted to manage it—failed to adequately maintain the right-of-way, causing it to fall into disrepair. Accordingly, the property owners sued, seeking a declaratory judgment and alleging breach of contract. Before the Court now is the property owners’ motion for a preliminary injunction: they ask the Court to enjoin the Defendants from using the right-of-way

during the pendency of this case. But the property owners have not established either of the two preliminary factors required to justify preliminary relief—a reasonable probability of success on the merits and irreparable harm absent the

injunction. Accordingly, the motion is denied. I. BACKGROUND A. Factual Background Plaintiffs David Laudermilch, Eric Rod, and John T. Wolfe own separate

parcels of land in Bingham Township, Potter County, Pennsylvania.1 The Plaintiffs’ properties abut a 1,450-acre plot of working timberland that Defendant 730 Texas owns as an investment property.2 According to 730 Texas, the timberland is completely landlocked—it cannot be accessed by public road.3 Per

agreement with 730 Texas, Defendant GreenWood manages the timberland.4 The parties are successors in interest to a right-of-way agreement dated April 30, 1969 (the “ROW Agreement”), which provides the Defendants with a right-of-

way to use subject portions of Cinder Hill Road—a private, gravel road on the Plaintiffs’ properties—to access the timberland.5 In addition, the ROW Agreement

1 Doc. 1 ¶¶ 14–16. 2 Doc. 12 ¶ 2; Doc. 13 ¶ 2. 3 Id. 4 Id. imposes on 730 Texas full responsibility for maintenance of the subject portions of Cinder Hill Road.6

According to the Plaintiffs, due to 730 Texas’s use of the right-of-way, Cinder Hill Road has “significantly deteriorated over time and is currently in dire need of repair.”7 The Plaintiffs allege that for at least the past five years, they have

“repeatedly informed [the] Defendants that their subject portions of Cinder Hill Road were in disrepair and required significant maintenance,” but the Defendants “have ignored [the] Plaintiffs’ inquiries.”8 The Defendants dispute this, asserting that they have always fulfilled their

obligations under the ROW Agreement.9 According to the Defendants, Plaintiff Rod first raised concerns regarding the condition of the right-of-way in October 2020.10 Rod met with GreenWood’s U.S. Northeast Manager, Todd Sparks, and a

contractor to discuss road repair and maintenance of Rod’s subject portion of Cinder Hill Road.11 Sparks informed Rod that to complete the needed repairs, the roadway would need to be widened.12

6 Doc. 4-1, Ex. 1 (ROW Agreement) at 1 (“It is understood and agreed that all responsibilities of maintenance of the said right-of-way shall be the responsibility of [730 Texas].”). 7 Doc. 1 ¶ 31. 8 Id. ¶¶ 6, 41. 9 Doc. 12 ¶¶ 31, 57; Doc. 13 ¶¶ 31, 57. 10 Doc. 12 ¶ 6; Doc. 13 ¶ 6. 11 Doc. 1 ¶¶ 33–35; Doc. 12 ¶¶ 33–35; Doc. 13 ¶¶ 33–35. Following this meeting, Rod removed trees on his property located alongside Cinder Hill Road and loosened the corresponding frontage and roadway (the

parties dispute whether Rod did this at Sparks’s direction or on his own volition).13 GreenWood’s contractor then repaired the damaged portion of the road on Rod’s property.14 In the Plaintiffs’ telling, this constituted a “temporary repair,” after

which Sparks “represented to Mr. Rod that he would return in April 2021 to rebuild the subject portion of Cinder Hill Road and install a permanent drainage system.”15 Conversely, the Defendants contend that GreenWood and its contractor “completed [the] required maintenance on the [right-of-way] by widening it,

raising it, and crowning it,”16 and deny representing to Rod that they would return in April 2021 to rebuild the roadway and install a new drainage system.17 Since GreenWood completed the December 2020 roadway repairs, there has

been no further maintenance work on the road and the Defendants’ use of the right- of-way has been minimal. GreenWood intended to survey the portion of the Cinder Hill Road covered by the right-of-way in the summer of 2021 and assess whether further maintenance was required.18 Indeed, Sparks lined up a contractor for the

expected work.19 But after he received pointed comments from Rod—in an

13 Id. 14 Doc. 1 ¶ 38; Doc. 12 ¶ 38; Doc. 13 ¶ 38. 15 Doc. 1 ¶ 38. 16 Doc. 18 at 5. 17 Doc. 12 ¶ 38; Doc. 13 ¶ 38; see also Doc. 18 at 5. 18 Doc. 24. expletive-laden voicemail, Rod threatened to seek criminal prosecutions against anyone affiliated with the Defendants who entered his property—Sparks called off

the prospective project.20 Further, in 2021, only one heavy vehicle associated with the Defendants’ business operations traversed the right-of-way.21 And to date, no heavy vehicles operating on the Defendants’ behalf have accessed the right-of-way in 2022.22

Based on recent construction on Plaintiff Laudermilch’s property, it seems that over the past two years, most heavy vehicle traffic across the right-of-way has been for the Plaintiffs’ benefit, independent of the Defendants’ business operations.23

B. Procedural History On March 21, 2022, the Plaintiffs initiated the instant action, seeking a declaratory judgment and bringing a claim for breach of contract.24 Specifically,

the Plaintiffs request a declaration from the Court that (a) “the Defendants are responsible for the maintenance of the Plaintiffs’ subject portions of Cinder Hill Road under the ROW Agreement (i.e., the right-of-way identified in the ROW Agreement),” and (b) “the Defendants’ failure to adequately repair and maintain

the Plaintiffs’ subject portions of Cinder Hill Road constitutes a breach of the

20 Id. 21 Doc. 18 at 5; see also Doc. 24. 22 Id. The Defendants noted that in preparation for an expected sale in late 2022 or 2023, “a trailer will be used [at some point this year] to transport a piece of equipment to and from the Timberland.” Doc. 18 at 5. 23 Doc. 24. ROW Agreement.”25 Additionally, the Plaintiffs assert that the Defendants “failed to comply with their roadway maintenance obligations to the Plaintiffs under the

ROW Agreement, and multiple oral promises to the Plaintiffs, by failing to adequately repair and maintain the Plaintiffs’ subject portions of Cinder Hill Road.”26

The following day, the Plaintiffs filed a motion for preliminary injunction, asking the Court to enjoin the Defendants “from accessing and using certain portions of Cinder Hill Road . . . as identified in the [ROW Agreement].”27 After the Defendants filed their answers to the Complaint,28 they submitted their

opposition to the Plaintiffs’ preliminary injunction motion.29 The Court held a hearing on the motion on August 2, 2022.30 Accordingly, the Plaintiffs’ motion is now ripe for disposition.

II. LAW Federal Rule of Civil Procedure

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