McNutt v. Intratex Gas Co.

600 S.W.2d 947, 1980 Tex. App. LEXIS 3490
CourtCourt of Appeals of Texas
DecidedMay 29, 1980
Docket6197
StatusPublished
Cited by2 cases

This text of 600 S.W.2d 947 (McNutt v. Intratex Gas Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McNutt v. Intratex Gas Co., 600 S.W.2d 947, 1980 Tex. App. LEXIS 3490 (Tex. Ct. App. 1980).

Opinion

OPINION

McDONALD, Chief Justice.

This is an appeal by plaintiffs McNutt from take-nothing judgment in their suit against defendants Intratex and Oasis on a pipeline right-of-way easement contract.

Plaintiffs who own 3709 acres of land entered a contract (and supplemental agreement) with defendant Intratex granting In-tratex a pipeline right-of-way easement for a 36 inch gas pipeline across 2.4 miles of their land, such easement being 50 feet wide with 50 additional feet as temporary easement during construction. The contract provided the pipeline be buried 30 inches and that Intratex substantially re *949 store the right-of-way detailing a number of specifics. Plaintiffs were paid $7,290. for the easement. Intratex assigned the easement to Oasis which contracted with Great Plains Construction Company to construct the pipeline.

After construction of the pipeline plaintiffs sued Intratex and Oasis to enforce the terms of the contract alleging, among other matters, breaches of the contract to substantially restore the right-of-way in a number of particulars; and sought specific performance of the contract, damages for the alleged breaches, and reversion to plaintiffs of the pipeline easement, and in the alternative the value of the reversion or use of the pipeline easement.

Upon pretrial the trial court sustained exception to plaintiffs’ pleadings of reversion and specific performance.

Trial was to a jury which found: 1) that there was not a failure to substantially restore the right-of-way to the condition as it existed prior to entry by defendants; 2) that “none” would be the sum of money necessary to restore the right-of-way to its condition immediately prior to construction of the pipeline; 3) that the value of the 24.34 acres of the right-of-way immediately prior to construction of the pipeline was $300. per acre; 4) that the value of the 24.34 acres of the right-of-way immediately after the taking was $150. per acre.

The trial court rendered judgment that plaintiffs take nothing.

Plaintiffs appeal on 16 points presenting 4 main contentions.

Contention 1 asserts the trial court erred in sustaining defendants’ special exception 1, levelled at the relief of specific performance.

Plaintiffs were not entitled to specific performance because they had an adequate remedy by law by way of damages. Rogers v. Daniels Oil & Royalty Co., Tex., 110 S.W.2d 891. Moreover, plaintiffs have waived this contention by failing to brief same.

Contention 2 asserts the trial court erred in sustaining defendants’ special exceptions 2 and 3 eliminating any cause of action for reversion of the land or a value of the reasonable use of the land from any date of reversion.

■Plaintiffs’ suit was predicated upon defendants’ breach of the contract to substantially restore the right-of-way to its condition as it existed prior to entry by defendants.

The jury found in answer to Issues 1 and 2 there was not a failure to substantially restore the right-of-way. Thus, there is no basis upon which plaintiffs could claim a reversion or money damages in lieu thereof.

Moreover, the trial court was correct in sustaining the exceptions removing plaintiffs’ claims for reversion or damages in lieu thereof, because defendants as a public utility cannot bind themselves by contract to do that which would disable them from performing those duties and obligations to the public with which they are charged. Any provision of a contract of such a corporation which impairs its ability to perform such services is a violation of the utilities contract with the State, is forbidden by public policy, and is therefore void. Lone Star Gas Co. v. Municipal Gas Co., 117 Tex. 331, 3 S.W.2d 790; Houston Lighting & Power Co. v. Railroad Comm, of Texas, Tex., 529 S.W.2d 763.

Contention 3 asserts the trial court erred in not admitting into evidence the contract between defendants and Great Plains Construction Company to show that such agreement was similar to the agreements contained in the right-of-way easement and supplement thereto.

This suit was for alleged breaches of a contract between plaintiffs and Intratex. It consisted of the Right-Of-Way-Easement and a Supplemental Agreement. Such contract provided:

“Grantee [Intratex] shall on completion of initial construction or removal, restore the [right of way] in substantially their condition immediately prior to construction or removal. To the extent that such restoration may require the removal of *950 rock or other material actually excavated from the ditch or uncovered as a result of construction or removal operations, Grantee may deposit same in headers or canyons designated by Grantors within reasonable distance thereof or remove same from Grantors land”. (Emphasis added)

Thus, the contract clearly provided that the removal of rock and ditch material was required if, and only if it were necessary to do so in order to restore the right-of-way to substantially its condition prior to construction. There is no requirement in the contract requiring removal of rocks and/or ditch material from the right-of-way unless it is necessary to accomplish substantial restoration of the right-of-way easement strip.

There was evidence that substantial restoration did not require the removal of any rock or ditch material from the right-of-way; and the jury found that the right-of-way was substantially restored.

Intratex had assigned its easement to Oasis which in turn entered into a contract with Great Plains to construct the pipeline. Oasis’ contract with Great Plains placed more stringent requirements on the contractor and contains the requirement that certain rocks not be buried in the ditch. The plaintiffs’ contract with Intratex which was assigned to Oasis contains no such requirement. Oasis reserved the right to require Great Plains to remove the rock if, in the opinion of Oasis, substantial restoration required such removal. Oasis determined that substantial restoration did not require the removal of rocks and ditch material from plaintiffs’ land.

The trial court refused to admit into evidence the Oasis-Great Plains contract. Plaintiffs sued on their contract with Intra-tex; never asserted that their contract with Intratex was ambiguous; but seek to become the 3rd party beneficiary of the contract Oasis made with Great Plains, which itself was never breached.

Since the contract between plaintiffs and Intratex is clear and unambiguous in its terms regarding disposal of rocks, and since there are no pleadings alleging ambiguity, there was no basis for the tendered evidence to have been admitted before jury, and the trial court correctly and properly excluded same.

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Bluebook (online)
600 S.W.2d 947, 1980 Tex. App. LEXIS 3490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcnutt-v-intratex-gas-co-texapp-1980.