Peck Iron & Metal Co. v. Colonial Pipeline Co.

146 S.E.2d 169, 206 Va. 711, 1966 Va. LEXIS 139
CourtSupreme Court of Virginia
DecidedJanuary 17, 1966
DocketRecord 5937
StatusPublished
Cited by5 cases

This text of 146 S.E.2d 169 (Peck Iron & Metal Co. v. Colonial Pipeline Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peck Iron & Metal Co. v. Colonial Pipeline Co., 146 S.E.2d 169, 206 Va. 711, 1966 Va. LEXIS 139 (Va. 1966).

Opinion

Eggleston, C. J.,

delivered the opinion of the court.

•Colonial Pipeline Company filed in the court below its amended petition seeking to condemn certain easements for the construction and maintenance of a pipeline for the transportation of petroleum products as a common carrier over the land of Peck Iron & Metal Company, Incorporated, in the city of Chesapeake. The petition alleged that Colonial is a “Virginia public service corporation” whose business is the transportation of petroleum products as a common carrier for the public; that the easements sought to be condemned are necessary for its use in serving the public, and that it is authorized by Code, § 56-49 as amended (Repl. Vol. 1959; Supp. 1964), to acquire them by eminent domain.

Peck filed a special plea, answer and grounds of defense, denying that Colonial is a public service corporation vested with the power of eminent domain and that the easements are sought for a public use. Moreover, it alleged that since Colonial had not obtained from the State Corporation Commission a certificate of public convenience and necessity, the Circuit Court of the city of Chesapeake was without jurisdiction of the proceeding.

After hearing the evidence ore tenus the lower court entered an order overruling Peck’s jurisdictional objections and holding that the *713 easements proposed to be taken are necessary for the use and purposes of the petitioner, that they are for a public use, and that the petitioner has the power to acquire them by eminent domain. The order further directed the summoning of commissioners for the trial of the issue of just compensation due to Peck. On the same day the court entered an order granting Colonial the right of immediate entry on the property upon the payment of the sum of $10,500 into court. The commissioners determined that $1,500 was due Peck for the value of its property taken and $4,000 for damages to the residue. Over Peck’s objection an order was entered confirming this report. We granted Peck an appeal.

In its assignments of error Peck challenges the holding of the lower court (1) that the General Assembly has delegated to Colonial the power of eminent domain; (2) that the taking of these easements across Peck’s land is for a public use; (3) that the jurisdiction of the court to entertain this proceeding was not conditioned upon Colonial’s obtaining from the State Corporation Commission a certificate of public convenience and necessity.

The pertinent facts are not in dispute. Colonial is a domestic corporation of both Virginia and Delaware. It was chartered and organized as a public service corporation under the laws of the State of Virginia and its powers and purposes in this State are thus stated in its charter:

“In Virginia, to construct, own and operate pipelines for the transportation of crude petroleum, and the products or by-products thereof, as a public service corporation and as a common carrier; and, insofar as permitted by the law of Virginia, to carry on the objects and purposes specified in each of the foregoing clauses of this article. * * * ”

Colonial carries refined petroleum products through its pipelines from input points in Texas, Louisiana and Mississippi to Linden, New Jersey, and to intermediate points in thirteen other States and the District of Columbia. It serves eleven locations in Virginia, including the city of Chesapeake. It does not own the products which are carried through its lines but receives and carries those of any shipper which meet its requirements and the regulations of the Interstate Commerce Commission. Colonial’s operations are subject to the provisions of the Interstate Commerce Act (49 U.S.C., §§ 1-26), under which it is required to operate as a common carrier. It has filed with the Interstate Commerce Commission a schedule of *714 tariffs which establishes the rates and terms under which it is required to serve as a common carrier the locations along its lines.

The principal questions presented by this appeal are: (1) has Colonial been delegated the power of eminent domain, and (2) is the taking of these easements over Peck’s land for a public use?

Peck’s position is that Colonial is not vested with the power of eminent domain; that under Code, § 56-49 as amended (Repl. Vol. 1959; Supp. 1964), under which Colonial claims, that right is intended to apply, and indeed constitutionally can only apply, to those public service corporations whose facilities are devoted to a public use; that there is no showing that Colonial’s facilities are so devoted, and no showing of a public necessity for the taking of private property for its purposes. Moreover, Peck says, there is no required legislative control of the purported public use of Colonial’s facilities. Finally, Peck says, Colonial’s right to exercise the power of eminent domain in the present proceeding was conditioned upon its obtaining from the State Corporation Commission a certificate of public convenience and necessity under Code, § 56-265.2 (Repl. Vol. 1959), which was not done.

The position of Colonial is that it is a public service corporation and as such has been delegated the right of eminent domain under § 56-49 as amended, that the exercise of that right in this case is for a public use, that its pipeline serves the public as a common carrier of petroleum products, that there is a public need for such pipeline which cannot be met except by the exercise of the right of eminent domain, and that the exercise of that right is adequately guarded and controlled by legislative authority. Colonial denies that its right to exercise the power of eminent domain in the present case is conditioned upon its obtaining a certificate of public convenience and necessity.

We agree with the position of Colonial. As has been said, that company was chartered and organized as a public service corporation. In accord with Code, § 13.1-50 (Repl. Vol. 1964), its charter states its purpose to conduct a single public service business, namely, “to construct, own and operate pipelines for the transportation of crude petroleum, and the products or by-products thereof, as a public service corporation and as a common carrier.” Code, § 56-1 (Repl. Vol. 1959), specifically includes pipeline companies within the definition of public service corporations. Clearly, then, by the terms *715 of its charter and the relevant statutes, Colonial is a Virginia public service corporation.

Public service corporations authorized to conduct a public service business in Virginia have been delegated the right to acquire property by eminent domain under Code, § 56-49, as amended by Acts of 1962, ch. 222, p. 332. The pertinent portion of this section reads:

“In addition to the powers conferred by Title 13.1, each public service corporation of this State organized to conduct a public service business * * * shall have the power:
“(2) To acquire by the exercise of the right of eminent domain any lands * * * necessary * * * for its use in serving the public, * *

The critical inquiry is whether the taking of these easements by Colonial is necessary for its use in serving the public, that is, whether the taking is for a public use.

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Bluebook (online)
146 S.E.2d 169, 206 Va. 711, 1966 Va. LEXIS 139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peck-iron-metal-co-v-colonial-pipeline-co-va-1966.