Rocky Mountain Power v. Stanley K. Jensen

300 P.3d 1037, 154 Idaho 549, 2012 WL 231254, 2012 Ida. LEXIS 34
CourtIdaho Supreme Court
DecidedJanuary 26, 2012
Docket37998
StatusPublished
Cited by10 cases

This text of 300 P.3d 1037 (Rocky Mountain Power v. Stanley K. Jensen) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rocky Mountain Power v. Stanley K. Jensen, 300 P.3d 1037, 154 Idaho 549, 2012 WL 231254, 2012 Ida. LEXIS 34 (Idaho 2012).

Opinion

W. JONES, Justice.

I. Nature of the Case

Stanley and Catherine Jensen (“the Jensens”), as trustees of the Stanley and Catherine Jensen Family Living Trust, appeal the district court’s decision granting Rocky Mountain Power’s Motion for Summary Judgment. In granting summary judgment in the context of an eminent domain action, the district court held that the Jensens did not offer competent evidence to establish that there was a genuine issue of material fact as to the just compensation for their property. The Jensens also appeal from the district court’s denial of their Motion for Reconsideration.

II. Factual and Procedural Background

Rocky Mountain Power (“Utility”) is a public utility authorized by the Idaho Public Utilities Commission to engage in the business of transmitting, distributing, and selling electric power. The Utility is vested with the power of eminent domain. It is in the process of creating a 345 kilovolt transmission line (“Transmission Line”) constructed from the Populous Substation in Bannock County, Idaho, to the Ben Lomond Substation in Box Elder County, Utah. The Transmission Line will be used to provide electric power to the Utility’s customers in Idaho, Utah, and Wyoming.

*551 The Jensens, as Trustees of the Stanley and Catherine Jensen Family Living Trust, are record owners of a cattle ranch that lies within the corridor established by the Utility for the Transmission Line. 1 The ranch consists of 640 acres of land located northeast of Malad, Idaho. The Utility sought a perpetual easement anJ a right of way (“the Easement”) for the Utility and its successors and assigns to locate, construct, reconstruct, operate, and maintain a 150 foot wide high-voltage overhead power line utility corridor through the eastern part of the Jensens’ property. The Easement consists of 22.388 acres for the installation of 125' to 150' tall steel power poles on the eastern portion of the Jensens’ property and 5.18 acres for the installation of the 30' wide access road outside the Transmission Line corridor, which is located on the northern portion of the Jensens’ property. Because of the location of the property subject to the Easement (“subject property”) and the narrow shape of the Jensens’ property, the Jensens and the Utility dispute how much of the Jensens’ property is cut-off or encumbered by the Easement.

On October 10, 2008, the Jensens entered into an Idaho Right of Occupancy Agreement (“Occupancy Agreement”) with the Utility, waiving all defenses to the Utility’s acquisition of the Easement, except the claim of just compensation. 2 The Occupancy Agreement was subsequently amended twice on March 19, 2009 and December 29, 2009 to provide for revised alignments of the subject property and to correct the legal description of the access road.

Upon execution of the Occupancy Agreement, the Jensens were paid $215,630 3 which would be deducted from any final determination of just compensation for the Easement. Under the terms of the Occupancy Agreement, if just compensation is determined to be less than $215,630, the Jensens are not required to return the difference. The Occupancy Agreement further states that if the parties are unable to reach an agreement for just compensation within 60 days of the Occupancy Agreement’s effective date, which is the date signed by the property owners, then just compensation is to be determined by court proceedings. The Occupancy Agreement also states that the date signed by the owners “shall be the date of value for fair market valuation purposes in the context of ... an eminent domain proceeding.” Thus, pursuant to the terms of the Occupancy *552 Agreement, October 10, 2008 is the date of value for fair market valuation purposes.

On December 4, 2008, the Jensens sent a letter (“the December 4th Letter”) to Electrical Consultants, Inc., one of the Utility’s consultants, responding to an inquiry from Tom Denison, who is employed by the Utility, inquiring as to what the Jensens would accept as just compensation for the Easement. The Jensens claimed that their estimate was “based upon the highest and best use of [their] property,” which the Jensens separately assessed for each affected parcel. In the December 4th Letter, Stanley Jensen stated that they “would seriously consider” $2,316,370 for a permanent easement. Stanley Jensen also provided the Utility with an alternative leasing option for the sum of $1,896,370.

On June 29, 2009, the Jensens submitted a document with the district court, which Stanley Jensen entitled: “Order for Discovery and Affidavit of Stanley K. Jensen.” This unsworn document was completed and signed by Stanley Jensen in his own handwriting. This unsworn document does not qualify as an “affidavit” and is not admissible as evidence. For purposes of reference only, it shall hereinafter be referred to as the “June 29th Pseudo-Affidavit.” It details the Jensens’ concerns about the access road’s gate, stating how it was left open on several occasions and is affecting the security of their property. It also detailed his concerns that the Utility had not paid him for cow feed for two seasons, as the Utility promised it would. The June 29th Pseudo-Affidavit also asserts that the Easement has affected the Jensens’ business dealings with local banks, asserting: “The occupancy monies we received were taken by the banks and applied to Farm Debt. When the banks saw what this project was doing in damage to our property they said your farm value has dropped [sic] too much and we want the money.” The June 29th Pseudo-Affidavit further reiterates the Jensens’ concerns about potential liabilities stemming from the access road and their need for a new well for their cattle, which is estimated at $50,000, because the access road cuts their cattle off from a natural spring.

The parties were unable to reach an agreement for just compensation within the time specified, so the Utility filed its Complaint on January 9, 2009, seeking a decree of condemnation, an award of easement, and specific performance of the Occupancy Agreement. The Utility submitted two independent appraisals of the property on January 29, 2010. According to an affidavit submitted by MAI appraiser Lenard Owens, “the fair market value of the part taken plus damages as of September 10, 2008, is $162,000.00.” 4 As set forth in the affidavit of MAI appraiser J. Phillip Cook, “the fair market value of the part taken plus damages as of January 12, 2009, is $82,000.00.” 5

Under the Scheduling Order, the Jensens had until January 29, 2010 to disclose any expert witnesses. The Jensens never provided any expert witness affidavits or appraisals for the district court’s consideration. Instead, on March 9, 2010, the Jensens submitted a document, which was entitled “Defence [sic] Answering Brief to Plaintiffs Motion for Summary Judgment,” (“Answering Brief’) to the district court. Like the other documents that the Jensens provided, the Answering Brief was not presented to the district court as a proper affidavit. Instead, the Answering Brief was created by Stanley Jensen in his handwriting.

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Cite This Page — Counsel Stack

Bluebook (online)
300 P.3d 1037, 154 Idaho 549, 2012 WL 231254, 2012 Ida. LEXIS 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rocky-mountain-power-v-stanley-k-jensen-idaho-2012.