MASS LAND ACQUISITION, LLC v. DIST. CT. (SIERRA PAC. POWER CO.)

140 Nev. Adv. Op. No. 67
CourtNevada Supreme Court
DecidedOctober 17, 2024
Docket85693
StatusPublished
Cited by1 cases

This text of 140 Nev. Adv. Op. No. 67 (MASS LAND ACQUISITION, LLC v. DIST. CT. (SIERRA PAC. POWER CO.)) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MASS LAND ACQUISITION, LLC v. DIST. CT. (SIERRA PAC. POWER CO.), 140 Nev. Adv. Op. No. 67 (Neb. 2024).

Opinion

140 Nev., Advance Opinion

IN THE SUPREME COURT OF THE STATE OF NEVADA

MASS LAND ACQUISITION, LLC, A No. 85693 NEVADA LIMITED LIABILITY COMPANY, Petitioner, vs. THE FIRST JUDICIAL DISTRICT COURT OF THE STATE OF NEVADA, IN AND FOR THE COUNTY OF STOREY; AND THE HONORABLE OCT 1 7 MA -"TH A. BRa JAMES E. WILSON, DISTRICT JUDGE, ELI ClE UPREME URT Respondents, BY -IMF DEPUTY CLERK and SIERRA PACIFIC POWER COMPANY, A NEVADA CORPORATION, D/B/A NV ENERGY, Real Party in Interest.

Original petition for a writ of mandamus or prohibition challenging district court orders denying a motion to dismiss and granting a motion for immediate occupancy in an eminent domain action. Petition denied.

Law Offices of Kermitt L. Waters and James J. Leavitt, Kermitt L. Waters, Michael A. Schneider, and Autumn L. Waters, Las Vegas, for Petitioner.

Leach Kern Gruchow Anderson Song and Kirby C. Gruchow, Jr., and Jeremy B. Duke, Las Vegas, for Real Party in Interest Sierra Pacific Power Company.

Garrett Weir and Cameron Dyer, Carson City, for Amicus Curiae Public Utilities Commission of Nevada.

Davison Van Cleve, PC, and Robert D. Sweetin, Las Vegas, for Amicus Curiae Valley Electrical Association, Inc.

SUPREME COURT OF NEVADA

(0) I9VA cats> 114-34:1151— Eglet Adams Eglet Ham He nriod andjoel D. Henriod, Las Vegas, for Amicus Curiae Southwest Gas Corporation.

Gregory J. Walch and Steven C. Anderson, Las Vegas, for Amici Curiae Las Vegas Valley Water District and Southern Nevada Water Authority.

McDonald Carano LLP and Adam Hosmer-Henner, Reno; Vinson & Elkins LLP and Jeremy C. Marwell, Washington, D.C., for Amici Curiae Edison Electric Institute and American Gas Association.

Paul C. Ray, Chtd., and Paul C. Ray, Las Vegas, for Amicus Curiae Rainbow Bend Homeowners Association.

BEFORE THE SUPREME COURT, EN BANC.

OPINION By the Court, PICKERING, J.: Eminent domain is the power of the government to take private property for public use without the landowner's consent, provided just compensation is paid. In Kelo v. City of New London, Connecticut, 545 U.S. 469, 484 (2005), a divided Supreme Court upheld, as a matter of federal constitutional law, a local government's taking of private property so that it could then transfer the property to another private party as part of an economic redevelopment plan. The Kelo decision ignited a national controversy over the use of eminent domain to benefit private interests, with many states enacting laws to limit what qualifies as a "public use" for state eminent domain purposes. In Nevada, voters amended the Nevada Constitution, effective 2008, to provide: "Public use shall not include the direct or indirect transfer of any interest in property taken in an eminent

SUPREME COURT OF NEVADA 2 (13) 1947A CES)ID domain proceeding from one private party to another private party." Nev. Const. art. 1, § 22(1). The amendment also added procedural protections for landowners, including the right to have a jury determine "whether the taking is actually for a public use" before occupancy is granted. Id. art. 1, § 22(2). This matter arises from an eminent domain action that real party in interest Sierra Pacific Power Company, dba NV Energy, initiated against petitioner Mass Land Acquisition to take an easement across Mass Land's property for a natural gas pipeline. NV Energy sought immediate occupancy. Mass Land moved to dismiss the action, arguing that it would violate article 1, section 22(1) of the Nevada Constitution for NV Energy, a for-profit, private company, to use its statutorily delegated eminent domain power to take and thereby transfer another private party's property to itself. In the alternative, Mass Land asked for a jury to decide whether the taking was actually for a public use. The district court denied the motion to dismiss and granted NV Energy immediate occupancy. Mass Land petitions this court for a writ of mandamus or prohibition against the district court's rulings. We deny Mass Land's petition for extraordinary writ relief. Nevada statutes delegate the government's eminent domain power to regulated public utilities for certain specified public uses, including "[p]ipelines for the transportation of . . . natural gas." NRS 37.010(1)(k); see NRS 37.0095(2). By its terms, article 1, section 22(1) prohibits taking private property for purposes of transferring the property to another private party for their use, protecting Nevadans from takings like the one that occurred in Kelo. This section does not prohibit a regulated public utility that "has the power of eminent domain," Nev. Const. art. 1, § 22(8); see NRS

SUPREME COURT OF NEVADA 3 (0) I 947A .44D. 37.0095(2), from taking property for a natural gas pipeline, a statutorily recognized public use, see NRS 37.010(1)(k). Indeed, for purposes of takings law, the Nevada Constitution defines a "private entity that has the power of eminent domain" as "the government." Nev. Const. art. 1, § 22(8). Nor was it error for the district court to resolve Mass Land's public use challenge as a matter of law. While article 1, section 22(2) entitles the landowner to a pre-occupancy jury determination on "whether the taking is actually for a public use," that right is subject to ordinary civil process. A civil case does not go to a jury unless there are issues of fact for the jury to decide, and the record in this case does not support that any such factual issues exist as to whether the taking was actually for a public use. I. NV Energy is an investor-owned public utility that provides electricity and natural gas to Nevada consumers. This dispute centers on its South Reno Second Source Gas Pipeline project (the Project). The Project called for NV Energy to construct and operate an underground natural gas distribution pipeline across parts of Storey and Washoe Counties in northern Nevada. The Project's goal was to improve reliability by lessening reliance on South Reno's main feeder line, to extend service so propane consumers in Lockwood could convert to natural gas, and to enhance public safety by reducing pressure in the area's natural gas distribution lines. To build the pipeline, NV Energy needed to acquire construction and right-of-way easements. The pipeline's 16-mile path ran along an existing utility corridor located on private property, including property belonging to Mass Land. The easement area on Mass Land's property was already encumbered with overhead electrical transmission lines and an effluent water line and had an appraised value of $10,700. NV Energy negotiated acquisition agreements with the 25 other private SUPREME COURT OF NEVADA 4 (0) 1947A • property owners on the pipeline's path but could not reach agreement with Mass Land. When their negotiations failed, NV Energy sued Mass Land in eminent domain. NV Energy coupled its complaint with a motion for immediate occupancy so it could complete the construction already underway on the pipeline. See NRS 37.100(2). In response, Mass Land filed a motion to dismiss in which it argued that, as a private entity, NV Energy could not as a matter of law establish the "public use" required to condemn an easement across Mass Land's property. See Nev. Const. art. 1, §.22(1).

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Bluebook (online)
140 Nev. Adv. Op. No. 67, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mass-land-acquisition-llc-v-dist-ct-sierra-pac-power-co-nev-2024.