Mountain Valley Pipeline, LLC v. 0.32 Acres of Land

127 F.4th 437
CourtCourt of Appeals for the Fourth Circuit
DecidedJanuary 27, 2025
Docket23-1935
StatusPublished
Cited by4 cases

This text of 127 F.4th 437 (Mountain Valley Pipeline, LLC v. 0.32 Acres of Land) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mountain Valley Pipeline, LLC v. 0.32 Acres of Land, 127 F.4th 437 (4th Cir. 2025).

Opinion

USCA4 Appeal: 23-1935 Doc: 40 Filed: 01/27/2025 Pg: 1 of 16

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 23-1935

MOUNTAIN VALLEY PIPELINE, LLC,

Plaintiff - Appellee,

v.

0.32 ACRES OF LAND, OWNED BY GRACE MINOR TERRY, Roanoke County Tax Map Parcel No. 102.00-01-01.02-0000 and Being MVP Parcel No. VA-RO-5149 (AR RO- 279.01),

Defendant - Appellant.

Appeal from the United States District Court for the Western District of Virginia, at Roanoke. Elizabeth K. Dillon, Chief U.S. District Judge. (7:21–cv–00099–EKD)

Argued: October 31, 2024 Decided: January 27, 2025

Before GREGORY, WYNN, and HARRIS, Circuit Judges.

Vacated in part, reversed in part, and remanded by published opinion. Judge Wynn wrote the opinion, in which Judge Gregory and Judge Harris joined.

ARGUED: Joseph Very Sherman, POOLE BROOKE PLUMLEE PC, Virginia Beach, Virginia, for Appellant. Wade Wallihan Massie, PENN, STUART & ESKRIDGE, Abingdon, Virginia, for Appellee. ON BRIEF: Seth M. Land, PENN, STUART & ESKRIDGE, Abingdon, Virginia, for Appellee. USCA4 Appeal: 23-1935 Doc: 40 Filed: 01/27/2025 Pg: 2 of 16

WYNN, Circuit Judge:

Mountain Valley Pipeline (“MVP”) needed an access road to deliver heavy

equipment to a section of its pipeline in southwestern Virginia. Acting under federal law,

MVP condemned a 0.32-acre access easement on the northwest corner of Grace Terry’s

land, near the summit of Poor Mountain. This taking was proper; the only remaining issue

is how much MVP must pay Terry in just compensation. Terry appeals the district court’s

exclusion of two pieces of evidence she offered on that issue.

First, Terry sought to testify at trial that the access easement significantly devalued

her land. In support, she contended that the access easement now blocked the best hiking

trail on her property, and noted that her neighbors recently sold their properties at below-

market rates after MVP condemned portions of their property. However, the district court

prohibited Terry from testifying as to damages, finding that Terry’s opinion had “no basis”

and was “inadmissible.” Mountain Valley Pipeline, LLC v. 0.32 Acres of Land Owned by

Terry, No. 7:21-cv-99, 2022 WL 4091860, at *8 (W.D. Va. Sept. 7, 2022). We hold that

Terry’s factual bases qualified her to testify as a lay opinion witness, so we vacate the

district court’s entry of summary judgment and reverse the exclusion of some of Terry’s

testimony.

Second, Terry submitted an expert report on the issue of just compensation. The

district court, believing that it possessed increased discretion to exclude expert evidence in

eminent domain cases, applied a heightened admissibility standard and determined

contested facts at the evidentiary stage. It then excluded the expert report and granted MVP

summary judgment. But in Mountain Valley Pipeline, LLC v. 9.89 Acres, No. 23-2129, slip

2 USCA4 Appeal: 23-1935 Doc: 40 Filed: 01/27/2025 Pg: 3 of 16

op. (4th Cir. Jan. 27, 2025), also issued today, we hold that courts should apply the standard

rules of evidence to expert testimony in eminent domain proceedings. We therefore vacate

the exclusion of Terry’s expert report and remand for further proceedings.

I.

Grace Terry owns more than 500 acres 1 of unimproved land on top of Poor

Mountain, Virginia (the “Terry Parcel”). In 2007, she voluntarily deeded a conservation

easement over the entirety of her parcel to the Virginia Outdoors Foundation (the

“conservation easement”). The conservation easement prohibits subdivision, limits

construction to only one homesite, and restricts the location of that homesite.

Honeysuckle Road, a public thoroughfare, cuts through Terry’s land. It sees little

traffic as it leads only to a gated police communications tower. An old logging road,

impassable by car, branches off Honeysuckle Road through the northwest corner of the

parcel toward the top of the mountain.

In October 2017, MVP initiated a condemnation action against Terry under the

Natural Gas Act, 15 U.S.C. § 717 et seq., for a 0.32-acre access road easement (the “access

easement”) along the old logging road. 2 MVP intends to use the easement to bring heavy

equipment to the pipeline, which does not itself traverse the Terry Parcel. The access

easement will be at most thirty feet wide temporarily during the road’s construction (for a

1 According to Terry’s expert, the parcel is approximately 558 acres. MVP’s expert measured the parcel at 590 acres. 2 MVP settled separately with the Virginia Outdoors Foundation. 3 USCA4 Appeal: 23-1935 Doc: 40 Filed: 01/27/2025 Pg: 4 of 16

total of 0.085 acres of temporary-only easement), and at most twenty feet wide permanently

(for a total of 0.235 acres).

In early 2018, the district court granted MVP partial summary judgment and a

preliminary injunction granting immediate possession of the access easement. See

Mountain Valley Pipeline, LLC v. Easements to Construct, Operate & Maintain a Nat. Gas

Pipeline over Tracts of Land in Giles Cnty., No. 7:17-cv-492, 2018 WL 648376 (W.D. Va.

Jan. 31, 2018) (granting partial summary judgment); Mountain Valley Pipeline, LLC v.

Easements to Construct, Operate & Maintain, No. 7:17-cv-492 (W.D. Va. Mar. 7, 2018),

ECF No. 613 (order granting immediate possession). We affirmed the summary-judgment

decision, Mountain Valley Pipeline, LLC v. 6.56 Acres of Land, 915 F.3d 197 (4th Cir.

2019), and the Supreme Court denied certiorari, Givens v. Mountain Valley Pipeline, LLC,

140 S. Ct. 300 (2019). The remaining issue was the amount MVP must pay Terry in just

compensation. Terry introduced multiple pieces of evidence on the matter of just

compensation, two of which are at issue in this appeal. 3

First, Terry sought to testify that the access road diminished the value of her land

by $333,000, or approximately one-third of what she asserted was its $1,000,000 pre-taking

value. During a deposition, Terry stated from her own knowledge of the property that the

access easement is situated on the old logging road, which provides hiking access to an

important overlook. She also stated that her opinion on damages was informed by the value

of two recent sales of nearby properties encumbered by pipeline easements (“Sale One”

3 Terry also submitted expert reports by Linda DeVito and Larry Florin, but she does not appeal their exclusion. 4 USCA4 Appeal: 23-1935 Doc: 40 Filed: 01/27/2025 Pg: 5 of 16

and “Sale Two”). The property conveyed in Sale One was purchased after MVP filed its

condemnation complaint but before MVP was granted possession of the easement. The

property at issue in Sale Two, purchased by the same buyer in Sale One, was conveyed

after MVP had taken possession of its easement. Terry finally considered an expert

appraisal performed on her land when the conservation easement was deeded in 2007,

which calculated that the conservation easement devalued her property by 30%. Terry

argued that the access easement would devalue her property by an equal percentage

because it also eliminated some uses of the property.

Second, Terry submitted an expert appraisal by Dennis Gruelle (the “Gruelle

Report”).

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Bluebook (online)
127 F.4th 437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mountain-valley-pipeline-llc-v-032-acres-of-land-ca4-2025.