Mountain Valley Pipeline, LLC v. 1.85 Acres of Land, Owned by Jacquline J. Lucki

CourtDistrict Court, W.D. Virginia
DecidedMarch 5, 2020
Docket7:19-cv-00147
StatusUnknown

This text of Mountain Valley Pipeline, LLC v. 1.85 Acres of Land, Owned by Jacquline J. Lucki (Mountain Valley Pipeline, LLC v. 1.85 Acres of Land, Owned by Jacquline J. Lucki) is published on Counsel Stack Legal Research, covering District Court, W.D. Virginia 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. 1.85 Acres of Land, Owned by Jacquline J. Lucki, (W.D. Va. 2020).

Opinion

FOR THE WESTERN DISTRICT OF VIRGINIA ROANOKE DIVISION

MOUNTAIN VALLEY PIPELINE, LLC, ) ) Plaintiff, ) ) v. ) Civil Action No. 7:19-cv-00147 ) 1.85 ACRES OF LAND, OWNED BY ) By: Elizabeth K. Dillon JACQUELINE J. LUCKI, ) United States District Judge ) Defendant. ) ) ) ) )

MEMORANDUM OPINION AND ORDER Plaintiff Mountain Valley Pipeline (MVP) is constructing an interstate natural gas pipeline. MVP commenced a condemnation action under the Natural Gas Act, 15 U.S.C. § 717 et seq., to acquire a permanent easement and temporary easements on numerous properties, including this property located in Roanoke County. On March 7, 2018, the court entered an order in the primary condemnation case, Mountain Valley Pipeline LLC v. Easements to Construct, Case No. 7:17-cv- 492 (W.D. Va.) (Dkt. No. 595), granting MVP immediate possession of the easement on this property. The trial of this matter is scheduled to begin on March 16, 2020. MVP filed a motion in limine, a motion for partial summary judgment on the issue of the larger parcel, and a motion to exclude the testimony of defendant’s expert witnesses––Dennis W. Gruelle, Sean Horne, and Tom Franks. Defendant moved for summary judgment on the issue of unity of highest and best use, to exclude the appraisal report of Joseph Thompson, and for an extension of time to respond to MVP’s motion in limine. At the hearing on these motions, defendant withdrew her motion for summary judgment, the court granted MVP’s motion for parts six, seven, and eight of MVP’s motion in limine. Thus, the court took the following under advisement: parts one through five of MVP’s motion in limine, MVP’s motion to exclude expert testimony, and defendant’s motion to exclude expert testimony. (See id.) For the reasons stated below, MVP’s motion in limine will be granted in part and denied in part, MVP’s motion to exclude expert testimony will be denied, and defendant’s motion to exclude appraisal report will be denied. I. BACKGROUND MVP has condemned an easement over a tract owned by defendant, identified in the main pipeline case complaint as MVP Parcel No. VA-RO-52 (the Property). MVP is taking a permanent

easement of 1.10 acres and a temporary workspace of 0.75 acres. On October 13, 2017, the Federal Energy Regulatory Commission (FERC) issued an order for MVP to construct, maintain, and operate a natural gas pipeline along a route that includes the Property (the Approved Route). On October 24, 2017, MVP filed an action to condemn easements along the Approved Route on the Property (Easements) under Section 7 of the Natural Gas Act, 15 U.S.C. § 717f. On October 27, 2017, MVP moved for partial summary judgment that it is authorized to condemn the Easements and a preliminary injunction granting immediate possession for construction. On January 31, 2018, the court issued a memorandum opinion and order granting MVP’s motion for partial summary judgment and conditionally granting MVP’s motion for immediate possession upon a determination of appropriate security. On March 7, 2018, the court

set deposits and bonds for the Property and granted MVP immediate possession of the Easements effective upon making the required deposit and posting the required bond. The subject Property is a 16.76-acre tract located in Roanoke County consisting of about (Dkt. No. 12-1.) The Property has been used for a single-family home for multiple decades. MVP’s expert Joseph Thompson determined a value of $240,000 before the taking and $200,000 after the taking for a total amount of $40,000 in just compensation for the permanent taking, and $1,092 in just compensation for the temporary workspace. (Thompson Appraisal Report page 4 of 123, Dkt. No. 14-1.) Thompson found that the highest and best use for the Property before and after the taking is single-family residential. (Id. at 32–35, 53.) Defendant’s expert Dennis Gruelle determined that the highest and best use for the Property was for residential development. (Gruelle Appraisal Report page 17 of 49, Dkt. No. 14-2.) “Reconciling the competing uses, vacant and improved, leads the appraiser to conclude that the

highest and best use of the property is for adjustment of the lot line and residential development.” (Id. at 22.) After condemnation, however, “the subject property loses all opportunity to sell for land value as developable for high-end residential uses.” (Id. at 37.) According to Gruelle, the Pipeline project “changes the highest and best use from selling for land value with utility to adjust the boundary line and compose two buildable sites to a highest and best use of selling the existing improvements as the only homesite with excess, and unusable, land.” (Id.) Therefore, Gruelle found the value before the taking to be $225,000 and the value after the taking to be $70,000, for a total amount of $155,000 in just compensation. (Id. at 44.) Gruelle did not provide an appraisal amount for the temporary workspace. Defendant’s other two experts––Sean Horne, a residential development designer, and Tom Franko, a general contractor for residential development––also

found that the highest and best use was for residential development. (Horne Report, Dkt. No. 12-3; Franko Report, Dkt. No. 12-4.) Horne developed a conceptual resubdivision for the Property, about which all three experts intend to testify. This plan is based on relocating the lot line between the (Horne Report page 5 of 18.) II. DISCUSSION A. Legal Standards The motions present various issues of just compensation in eminent domain cases as well as issues involving the qualification of experts and their reliability and relevance. Legal standards regarding the same are set forth herein. 1. Just compensation for partial permanent takings, including severance damages The Takings Clause of the Fifth Amendment prohibits the taking of private property without just compensation. Lingle v. Chevron U.S.A., Inc., 544 U.S. 528, 536 (2005). When the

government condemns private property for a public purpose, it must pay just compensation for that property. Just compensation is the monetary equivalent of the property taken, and the federal courts have employed the concept of “fair market value” to determine the condemnee’s loss. United States v. 564.54 Acres of Land, 441 U.S. 506, 510–11 (1979); Almota Farmers Elevator & Warehouse Co. v. United States, 409 U.S. 470, 473–74 (1973). Unless otherwise proscribed by Congress, federal law governs “questions of substantive right, such as the measure of compensation” for federal courts in condemnation proceedings. United States v. Miller, 317 U.S. 369, 379–80 (1942). See also Tenn. Gas Pipeline Co. v. Permanent Easement for 1.7320 Acres, No. 3:cv-11-028, 2014 WL 690700 (M.D. Pa. Feb. 24, 2014) (unpublished) (concluding that federal law applies in determinations of just compensation

under the Natural Gas Act). The Fourth Circuit defines just compensation in a case of partial taking as “the value of the land taken plus the depreciation in the market value of the remainder.” United States v. 97.19 Acres of Land, 582 F.2d 878, 881 (4th Cir. 1978) (citing W. Va. Pulp & Paper Co. v. be ascertained as of the date of taking.” Miller, 317 U.S. at 374. In W. Va.

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