Orange County, Inc. v. Citgo Pipeline Co.

934 S.W.2d 472, 1996 WL 714112
CourtCourt of Appeals of Texas
DecidedJanuary 10, 1997
Docket09-95-350 CV
StatusPublished
Cited by12 cases

This text of 934 S.W.2d 472 (Orange County, Inc. v. Citgo Pipeline 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
Orange County, Inc. v. Citgo Pipeline Co., 934 S.W.2d 472, 1996 WL 714112 (Tex. Ct. App. 1997).

Opinion

OPINION

JOHN HILL, Justice (Assigned).

Orange County, Inc. brought this lawsuit against Citgo Pipeline Company seeking a mandatory injunction for removal of Citgo’s pipeline that is contained in an easement running across Orange’s land and seeking fair rental for the use of its land. Orange appeals from the trial court’s granting of a summary judgment that it take nothing and from the accompanying order denying its motion for partial summary judgment. It contends in four points of error that the trial, court erred by granting Citgo’s motion for summary judgment and denying Orange’s own motion for partial summary judgment because the pipeline easement in question is not partially assignable or divisible as a matter of law, so that Citgo’s attempt, upon conveying the easement to another party, to reserve a ½ interest in the easement is invalid. '

We affirm because the trial court did not err in granting Citgo’s motion for summary judgment and in denying Orange’s motion for partial summary judgment, for reasons expressed in this opinion.

In response to Orange’s petition seeking removal of its pipeline and seeking fair rental for the use of the land, Citgo filed a motion for summary judgment on the basis that its easement allows partial assignment; that even if it did not, the assignment in question would not terminate its easement rights; and that in any event Orange has no justiciable claim against it apart from the rights of the pipeline company to which Citgo assigned its interest in the 12" pipeline in question.

The movant for summary judgment has the burden of showing that there is no genuine issue of material fact and that it is entitled to judgment as a matter of law; in deciding whether there is a disputed material fact issue precluding summary judgment, evidence favorable to the non-movant will be taken as true; and every reasonable inference must be indulged in favor of the non-movant and any doubts resolved in its favor. Nixon v. Mr. Property Mgmt. Co., 690 S.W.2d 546, 548-49 (Tex.1985).

Orange’s predecessor-in-title granted to Citgo’s predecessor-in-interest an express easement across its property in 1943 for the construction, maintenance, and operation of pipelines, among other things. A 12" pipeline was constructed through the easement. In 1952, after Citgo had acquired the easement in question, Orange’s predecessor granted Citgo an easement for the construction, maintenance, and operation of pipelines, more carefully defining the area included within the easement. This easement also provided that the grantor would receive compensation for each additional pipeline that might be laid within the easement. A 20" pipeline was constructed within the easement in 1952.

*475 In 1987, Citgo assigned the 12" pipeline and the easement to Cities Service NGL Pipeline Company, now known as Trident. Under the terms of the assignment, Citgo reserved to itself an undivided ⅝ interest in the easement. Citgo did not assign any interest in the 20" pipeline. Orange subsequently obtained title to the property underlying the easement in question, then brought this suit.

Orange’s suit for injunction for removal of the pipeline and for fair rental value is premised upon the assumption that Citgo lost its easement for its 20" pipeline as a result of the 1987 assignment and that as the owner of the underlying property it has the right to have the pipeline removed and to recover fair rental value for the use of its land by the pipeline.

At the time of the 1987 easement, Citgo was operating both pipelines, the 12" and the 20", within the easement. It is undisputed that it had the right to do so. Orange contends that Citgo’s attempt in 1987 to reserve a ½ interest in the easement was invalid because the easement could not be partially assigned.

It is undisputed that Citgo could have lawfully assigned all of its easement rights to Cities Service. With respect to partial assignments of such an easement, the more modern view in commercial easements is that such an easement is partially alienable where it does not burden the underlying land beyond what was contemplated in the original easement grant. See Alan David Hegi, The Easement in Gross Revisited: Transferability and Divisibility Since 1945, 39 Vand. L.Rev. 109, 130-31 (1986); and RESTATEMENT OF PROPERTY, § 493, (American Law Institute 1944).

One commentator on Texas easement law concludes that courts are inclined to accept the view that a partial alienation would be an increase in the servitude, thereby restricting such an alienation. In support of his conclusion, the commentator cites Fort Worth & R.G. Ry. Co. v. Jennings, 76 Tex. 373, 13 S.W. 270 (1890) and Southwestern Bell Tel. Co. v. Texas & NOR Co., 125 F.2d 699 (5th Cir.1942). However, an examination of these eases shows that in each case the use complained of by the landowner placed a burden on the underlying land beyond what was contemplated in the original easement grant. For that reason, as we explain in more detail below, we find neither of these cases to be in conflict with the modern view as set forth in the Restatement and as discussed in the Vanderbilt Law Journal article. The commentator subsequently acknowledges that there is a conflict in the Texas cases. 3A FRED LANGE & ALOYSIUS LEOPOLD, LAND TITLES AND TITLE EXAMINATION § 381 (Texas Practice 1992).

Based upon our review of the authorities, we conclude that Texas follows the view that such easements are alienable where the resulting use does not burden the underlying land beyond what was contemplated in the original easement grant.

In support of its view that Texas law does not permit the partial alienation of such an easement, Orange primarily relies on the cases of Fort Worth & R.G. Ry. Co. v. Jennings, supra; Southwestern Bell Tel. Co. v. Texas, supra; Houston Pipe Line Co. v. Brown, 361 S.W.2d 884 (Tex.Civ.App.— Houston 1962, writ ref'd n.r.e.); and Houston Pipe Line Co. v. Dwyer, 374 S.W.2d 662 (Tex.1964). We find all four of these cases to be distinguishable from the case at bar.

In Fort Worth & R.G. Ry. Co. v. Jennings, the Texas Supreme Court held that where one railroad company had an easement for the operation of a railroad it could not grant another railroad the right to operate another rail line within the easement without the consent of and compensation to the landowner, and that the landowner could obtain injunction of the operation of the second line until it received compensation. Fort Worth, 13 S.W. at 272. We find this case to be distinguishable because in the railroad case the easement did not contemplate the building of more than one railroad line, and the landowner was not being compensated for the additional line, whereas in this case the building of more than one pipeline was contemplated in every relevant easement and because an agreement is in place under which Orange receives compensation for the additional pipeline.

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