Mountain Valley Pipeline, LLC v. 2.20 Acres of Land, Owned by Frank H. Terry, Jr., individually and as of the Estate of Hilah Parks Terry

CourtDistrict Court, W.D. Virginia
DecidedSeptember 1, 2023
Docket7:20-cv-00136
StatusUnknown

This text of Mountain Valley Pipeline, LLC v. 2.20 Acres of Land, Owned by Frank H. Terry, Jr., individually and as of the Estate of Hilah Parks Terry (Mountain Valley Pipeline, LLC v. 2.20 Acres of Land, Owned by Frank H. Terry, Jr., individually and as of the Estate of Hilah Parks Terry) 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. 2.20 Acres of Land, Owned by Frank H. Terry, Jr., individually and as of the Estate of Hilah Parks Terry, (W.D. Va. 2023).

Opinion

FIONR T THHEE U WNIETSETDE RSTNA DTIESST RDIICSTT ROIFC TV ICROGUINRITA ROANOKE DIVISION

MOUNTAIN VALLEY PIPELINE, LLC, ) ) Plaintiff, ) ) v. ) Civil Action No. 7:20-cv-00136 ) 2.20 ACRES OF LAND, BY FRANK H. ) By: Elizabeth K. Dillon TERRY, JR., as Executor of the Estate of ) United States District Judge Hilah Parks Terry, et al., ) ) Defendants. )

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 permanent and temporary easements on numerous properties, including the property at issue in this case, designated MVP Parcel No. VA-RO-4118 (the Property). The Property is located in Roanoke County and, at the time the lawsuit was filed, it was owned by Hilah Parks Terry, Frank H. Terry, Jr., Elizabeth Lee Terry, a/k/a Elizabeth Lee Reynolds, Grace Minor Terry, and Unknown Heirs or Assigns of Frank H. Terry, Sr. (collectively Landowners). On June 28, 2022, MVP filed a suggestion of death notifying the court that Hilah Parks Terry had passed away, and the executor of his estate, Frank H. Terry, Jr., was substituted as a defendant. (Dkt. Nos. 38, 39.) On March 7, 2018, the court entered orders in the primary condemnation case, Mountain Valley Pipeline LLC v. Easements to Construct, Case No. 7:17-cv-492 (W.D. Va.) (Dkt. Nos. 611), granting MVP immediate possession of the easements on the Property. These easements were initially joined with easements on another parcel, 0.32 Acres of Land Owned by Grace Minor Terry, on property designated MVP Parcel No. VA-RO-5149. Landowners moved to sever trials for each separate tract. The court granted this motion on February 18, 2021. A separate action was opened, and the court recently vested title to MVP’s easement with MVP. See generally Case No. 7:21-cv-00099; see id. Dkt. No. 56. Pending in this matter are MVP’s motion to exclude expert testimony (Dkt. No. 10) and MVP’s omnibus motion in limine (Dkt. No. 11). The court heard argument on these motions, so they are ripe. For the reasons that follow, MVP’s motions will be granted. I. BACKGROUND 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 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. Among the easements along the Approved Route, MVP is taking 2.20 acres on MVP Parcel No. VA-RO-4118, which includes 1.50 acres of temporary/permanent access easement and 0.70

acres of additional temporary workspace. (Case No. 7:17-cv-492, Dkt. No. 611.) The Property consists of approximately 53 acres on Poor Mountain Road in Roanoke County, Virginia. The temporary access easement is 40 feet in width and the permanent access easement is 25 feet in width. (Id., Dkt. No. 1-146.) The easement is over an existing roadway and provides access to the pipeline being constructed on an adjoining tract. (Rebuttal Report of Joseph E. Thompson (Thompson Rebuttal Report) 2, 7–8, Dkt. No. 10-1.) No part of the pipeline is being constructed on the Terry property in this case. Nonetheless, the landowners’ expert, Dennis Gruelle, finds that the property is damaged in the amount of $275,000. (Appraisal Report of Dennis Gruelle (Gruelle Report) 32, Dkt. No. 10-2.) Gruelle states that the “prime views, natural settings, and privacy are all impaired by the project and the property cannot justify premium rural residential use after the project given the loss of privacy, diminished quality of view vistas, the increase in noise, and the use of the road for two-way heavy vehicle and machinery traffic to maintain a natural gas pipeline built on steep slopes.” (Id. at 25.) Gruelle finds that the “national audience,” which relies on “great views,” would “pass” on the property after the

MVP project. (Id.) In Gruelle’s opinion, the property—all 53 acres and the historic home and other improvements—has lost 50% of its value because MVP is taking an access easement over an existing roadway. Gruelle asserts that the access easement prevents development, and he values the property based on sales of large-acreage tracts that are suitable only for single-family residential use because of lack of road frontage, steep topography, or high voltage transmission lines. (Gruelle Report 25–32.) Gruelle does not use any comparable sales with an access road. The only paired-sales studies mentioned by Gruelle involve natural gas pipeline easements, not access roads. (Id. at 24

(citing Myers & Woods study, paired sales of a property at Wintergreen, Virginia, and sales of properties on Green Hollow Road to Reddy). In his report, Gruelle does not recognize that the entire width of the access easement is not permanent. (Gruelle Report 20.) As a result, Gruelle expresses no opinion on rental value of the temporary part of the easement. Instead, Gruelle values the whole easement as permanent. (Id. at 32.) Linda DeVito, a broker, authored a letter opinion. (DeVito Letter, Dkt. No. 10-3.) DeVito writes that the pipeline project “serves to reduce marketability, desirability, and salability of [the] property.” (Id.) She provides no supporting data. Defendants also disclosed Larry Florin, who did not provide a report. (Defs.’ Rule 26(a)(2) Disclosure 3–4, Dkt. No. 10-4.) According to defendants, Florin will testify as to the “reasonable probability of rural residential subdivision” and “the highest and best use of mountainside property and its market demand.” (Id.) Defendants have not disclosed Florin’s opinions on these subjects or the facts and data that support his opinions. Defendants also state that Florin will testify that “road

easements for private rights-of-way are inconsistent and incompatible with high-end rural residential development for the loss of privacy and views.” (Id. at 4.) No facts or data have been disclosed to support this opinion. 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.

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Mountain Valley Pipeline, LLC v. 2.20 Acres of Land, Owned by Frank H. Terry, Jr., individually and as of the Estate of Hilah Parks Terry, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mountain-valley-pipeline-llc-v-220-acres-of-land-owned-by-frank-h-vawd-2023.