Roger Tiemessen v. Alliance Pipeline (Iowa) L.P. and Alliance Pipeline, Inc.

CourtCourt of Appeals of Iowa
DecidedJanuary 27, 2016
Docket14-1727
StatusPublished

This text of Roger Tiemessen v. Alliance Pipeline (Iowa) L.P. and Alliance Pipeline, Inc. (Roger Tiemessen v. Alliance Pipeline (Iowa) L.P. and Alliance Pipeline, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roger Tiemessen v. Alliance Pipeline (Iowa) L.P. and Alliance Pipeline, Inc., (iowactapp 2016).

Opinion

IN THE COURT OF APPEALS OF IOWA

No. 14-1727 Filed January 27, 2016

ROGER TIEMESSEN, Plaintiff-Appellant,

vs.

ALLIANCE PIPELINE (IOWA) L.P. and ALLIANCE PIPELINE, INC. Defendants-Appellees. ________________________________________________________________

Appeal from the Iowa District Court for Chickasaw County, Richard D.

Stochl, Judge.

Roger Tiemessen appeals from the district court’s entry of summary

judgment in favor of Alliance Pipeline. REVERSED AND REMANDED.

Nathanial W. Schwickerath of Schwickerath, P.C., New Hampton, for

appellant.

Johannes H. Moorlach of Whitfield & Eddy, PLC, Des Moines, and

Nicole M. Moen and Haley L. Waller Pitts of Frederickson & Byron, P.A.,

Minneapolis, Minnesota, for appellees.

Heard by Danilson, C.J., and Mullins and McDonald, JJ. 2

DANILSON, Chief Judge.

Roger Tiemessen appeals from the district court’s entry of summary

judgment in favor of Alliance1 on his breach-of-contract claim. We reverse and

remand, concluding Tiemessen has raised a genuine issue of material fact.

I. Background Facts and Proceedings.

The following facts are not in dispute. Tiemessen’s parents, Raymond

and Alice Tiemessen, own the farmland at issue in this lawsuit—tracts 133, 134,

and 134A. Tiemessen has rented the land from his parents for many years. He

pays “annual farm cash rent to [his parents] at the rate of $100.00 per acre.”

Although Tiemessen and his parents had a written lease, at some point, it has

been lost.

On February 9, 1999, Raymond and Alice Tiemessen entered into an

easement and right-of-way agreement with Alliance. The easement provides that

Alliance will “have all privileges necessary or convenient for the full use of the

rights herein granted.” It also provides that Alliance “agrees to pay for damages

to crops, pasture, fences, drainage tile, structures, and timber which may arise

from the laying, constructing, maintaining, operating, repairing, replacing or

removing of the said pipeline.” In addition, the easement provides that Alliance

will construct and operate the pipeline consistent with an Agricultural Impact

Mitigation Agreement (AIMA) between Alliance, the Iowa Attorney General’s

Office, and the Iowa Department of Agriculture. The AIMA provides that Alliance

“shall reasonably compensate Landowners and/or Tenants for damages, losses

1 For our convenience, we use Alliance to refer to both defendants—Alliance Pipeline (Iowa) L.P. and Alliance Pipeline, Inc. 3

or inconvenience caused by [Alliance] . . . associated with construction,

installation, operation, maintenance and existence of the pipeline,” including “loss

of crops, pasture, timber, trees, produce, livestock, fences, drain tiles, irrigation

systems or equipment.”

In exchange for the easement, Alliance paid Raymond and Alice

Tiemessen $26,232 (the easement payment), which represents $21,438 for a

permanent right-of-way over 7.94 acres; $3899 for temporary work space over

7.22 acres; and $875 for additional temporary work space over 1.62 acres.

Alliance also paid Raymond and Alice Tiemessen $117,662 for damages

“listed on the Advance Damages Computation Form attached hereto as

Appendix A” (the restoration payment), which included $20,160 for corn crop loss

on 16.8 acres for two years; $8132 for land restoration on 16.8 acres; $4620 for

rock removal on 16.8 acres; $2520 for dust abatement on 16.8 acres; $9780 for

inconvenience of production due to realignment of pipeline; $7450 for livestock

relocation; and $65,000 for drain tiling. In connection with the restoration

payment, Raymond and Alice Tiemessen executed a release, agreeing they

accepted the restoration payment:

[I]n full payment of settlement, in advance, for all damages listed on the Advance Damages Computation Form attached hereto as Appendix A. In consideration of said advance payment, [Raymond and Alice Tiemessen] do hereby release and forever discharge [Alliance] from any and all causes of action, suits, debts, claims, expenses, general damages, interest, costs and demands whatsoever, at law and in equity, against [Alliance] which [they] ever had, now have, or which [they], [their] insurers, heirs, executors, administrators, successors or assigns hereafter can, shall, or may have in the future relating to the damage items listed in Appendix A, arising out of or in connection with, resulting or alleged to have resulted from, construction or surveying, over, under or on the following lands . . . . 4

In addition, Raymond and Alice Tiemessen agreed: (1) to waive “the procedures

for determining damages set forth in section 19 of the [AIMA]” and (2) that

Alliance’s obligations under the AIMA with respect to the damages listed in in

Appendix A were waived and/or satisfied.

Alliance installed the pipeline on tracts 133, 134, and 134A in 1999 and

completed restoration activities on those tracts in 2000. Since completing

restoration activities, the pipeline and the tracts farmed by Tiemessen have

remained undisturbed by Alliance. Alliance has not conducted any affirmative

activities on the tracts and has not entered the tracts.

Since the pipeline’s construction, Tiemessen has continued to farm his

parents’ land. At Tiemessen’s request, in 2010, 2011, and 2012, Alliance sent a

certified agronomist to the parcels rented by Tiemessen to collect data regarding

the yield differentials between the easement area and the non-easement area of

the parcels. Historically, Alliance has collected yield data regarding on and off

easement areas as part of a larger program run by Alliance to maintain

landowner relationships. As part of that program, and to foster goodwill, Alliance

voluntarily offered to pay Tiemessen the value of the yield differences, based on

the data collected by the certified agronomist. This program ended in 2012.

Starting in 2010, Tiemessen rejected Alliance’s voluntary offers and

instead demanded payments for “crop losses.”

Roger Tiemessen filed this action on July 12, 2013, seeking damages as a

“third party beneficiary“ of the easement for Alliance’s “failure to pay crop losses

as required by the easement.” 5

Alliance filed a motion for summary judgment, asserting (1) Tiemessen

had not suffered “damage to crops” under the easement, (2) Tiemessen lacked

standing to assert claims for soil productivity, and (3) the landlord had previously

released any claims for soil productivity. In response, Tiemessen stated he was

not making a claim related to soil productivity; rather, his claim is “for damages to

his crops occasioned by the operation of the pipeline pursuant to the easement

and by the operation and existence of the pipeline pursuant to the mitigation

agreement that Alliance executed with the State of Iowa.” He argued, “The

operation of the pipeline causes damage to his crops each year and he is entitled

pursuant to the easement to make a claim for that damage.”

On September 16, 2014, the district court issued a ruling, concluding:

Roger claims his yield from crops grown in the easement area is less than yield from crops grown outside of that area. He does not allege that Alliance performed any affirmative act that damaged his growing crops. Therefore, his claim is not one of crop damage but rather one of injury to the land where his crops are growing. Iowa courts distinguish between the two. In Grell v. Lumsden, 220 N.W.

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