Sabal Trail Transmission, LLC v. 2.468 Acres of Land in Levy County Florida

59 F.4th 1158
Court of Appeals for the Eleventh Circuit·Decided February 3, 2023·No. 21-11998·Published·Cited by 14 cases

Opinion

[PUBLISH]

In the United States Court of Appeals For the Eleventh Circuit

No. 21-11995

SABAL TRAIL TRANSMISSION, LLC, Plaintiff-Appellant, versus 18.27 ACRES OF LAND IN LEVY COUNTY, LEE A. THOMAS AS SUCCESSOR SOLE TRUSTEE OF THE TRUST AGREEMENT FOR LEE A. THOMAS DATED OCTOBER 1, 2003, LEE A. THOMAS AS SUCCESSOR SOLE TRUSTEE OF THE TRUST AGREMENT FOR BEVERLY J. THOMAS DATED OCTOBER 1, 2003, RYAN B. THOMAS, DRUMMOND COMMUNITY BANK, UNKNOWN OWNERS IF ANY,

2 Opinion of the Court 21-11995

PNC BANK, NATIONAL ASSOCIATION,

Defendants-Appellees,

WILBUR F. DEAN,

Defendant.

Appeals from the United States District Court for the Northern District of Florida D.C. Docket No. 1:16-cv-00093-MW-GRJ

No. 21-11998

SABAL TRAIL TRANSMISSION, LLC, Plaintiff-Appellant, versus 2.468 ACRES OF LAND IN LEVY COUNTY FLORIDA, RYAN B. THOMAS,

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FARM SERVICE AGENCY UNITED STATES DEPARTMENT OF AGRICULTURE ACTING ON BEHALF OF UNITED STATES OF AMERICA, UNKNOWN OWNERS IF ANY,

Defendants-Appellees.

Appeals from the United States District Court for the Northern District of Florida D.C. Docket No. 1:16-cv-00095-MW-GRJ

Before JORDAN and ROSENBAUM, Circuit Judges, and STEELE, District Judge. * ROSENBAUM, Circuit Judge:

* The Honorable John Steele, United States District Judge for the Middle District of Florida, sitting by designation.

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This case is all about our prior-precedent rule. As any practitioner before our Court knows, once a panel—or in this case, the en banc Court—has decided an issue in a published decision, that decision is binding on all future panels. That is so because, as a court of law, we aim for rules to be clear, consistent, and predictable . So when our prior-precedent rule applies, it doesn’t matter whether we agree with our earlier decision or not. It doesn’t matter whether the prior panel or en banc Court missed an argument or overlooked a reason. It doesn’t matter if the current panel thinks the earlier decision was wrong. The current panel must follow the earlier decision.

Here, the parties dispute whether, in a condemnation action where a private entity uses the federal eminent-domain power under the Natural Gas Act, § 15 U.S.C. § 717f(h), federal law or state law supplies the rule of decision in determining what compensation the condemnor must pay the landowner. In this instance, the state’s substantive law would provide more compensation than would federal law because the state (Florida) law defines compensation for condemnation as including attorney’s fees. Federal law doesn’t.

But in resolving this question, all the action takes place in determining whether and, if so, how our predecessor Court’s precedent , Georgia Power Company v. Sanders, 617 F.2d 1112 (5th Cir.

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1980) (en banc) 1, controls our analysis. As it turns out, Georgia Power applies. And the facts and administrative scheme involved in that case are so close to those in this one that it’s almost like we are deciding the same case again—only this time we are bound by precedent. Because Georgia Power applies here, it’s game over: Georgia Power necessarily dictates the answer. And that answer requires us to choose state law to supply the federal law on the meaning of “compensation” under 15 U.S.C. § 717f(h) of the Natural Gas Act.

After a thorough review of the record and with the benefit of oral argument, we therefore affirm the district court’s judgment.

I. BACKGROUND

Plaintiff-Appellant Sabal Trail Transmission, LLC (“Sabal Trail”), is a natural-gas company that has a “certificate of public convenience and necessity” from the Federal Energy Regulatory Commission (“FERC”) 2 under the Natural Gas Act. See 15 U.S.C.

1 Decisions of the former Fifth Circuit rendered prior to October 1, 1981, constitute binding precedent in the Eleventh Circuit. Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir. 1981) (en banc). 2 The Natural Gas Act does not refer to FERC specifically. Rather, the statute entrusted the power to grant certificates of public convenience and necessity to the Federal Power Commission. See 15 U.S.C. § 717a(9). But in 1977, when the Department of Energy was created, Congress transferred the power to grant such certificates to FERC, which is housed within the Department of Energy. See 42 U.S.C. § 7172(a)(D).

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§ 717f(c). A natural-gas company with such a certificate can exercise eminent-domain power to construct, operate, and maintain natural-gas pipelines. 3 Id. § 717f(h). Some states, like Florida, authorize these licensees to exercise the eminent-domain power of the state to condemn property for the purpose of constructing or maintaining natural-gas pipelines. See, e.g., Fla. Stat. § 361.05. Similarly, Section 717f(h) is a delegation to private parties of the federal government’s eminent-domain authority. PennEast Pipeline Co., LLC v. New Jersey, 141 S. Ct. 2244, 2254 (2021) (“Since the founding, the Federal Government has exercised its eminent domain authority through both its own officers and private delegatees . . . . Section 717f(h) is an unexceptional instance of this established practice.”). So often, private licensees have the option of

3 (h) Right of eminent domain for construction of pipelines, etc.

When any holder of a certificate of public convenience and necessity cannot acquire by contract, or is unable to agree with the owner of property to the compensation to be paid for, the necessary right-of-way to construct, operate, and maintain a pipe line or pipe lines for the transportation of natural gas, and the necessary land or other property, in addition to right-ofway , for the location of compressor stations, pressure apparatus , or other stations or equipment necessary to the proper operation of such pipe line or pipe lines, it may acquire the same by the exercise of the right of eminent domain in the district court of the United States for the district in which such property may be located, or in the State courts.

15 U.S.C. § 717f(h).

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using state or federal eminent-domain authority to condemn property for use in constructing or maintaining natural-gas pipelines.

Acting under the federal eminent-domain authority, in 2016, Sabal Trail sued to condemn easements on two tracts of land so it could build a natural-gas pipeline through two adjacent properties in Levy County, Florida: an 837-acre farm that Defendant-Appellee Lee Thomas owned and a 40-acre residential tract Lee’s son, Defendant -Appellee Ryan Thomas (together, the “Thomas family”), owned. See Sabal Trail Transmission, LLC v. 18.27 Acres of Land in Levy Cnty., 824 F. App’x 621, 623 (11th Cir. 2020) (hereinafter, Sabal Trail I). The Thomas family grows watermelons and peanuts , tends cattle, and boards horses on the farm. Id. Ryan4 operates the farm and lives on the adjoining 40-acre tract with his two children. Id.

After Sabal Trail filed the condemnation actions, the district court granted it immediate possession of the land. Id. at 623–24. Sabal Trail then built the pipeline across the two properties. Id. at 624.

Sabal Trail and the Thomas family could not agree on compensation for the taking, so the district court held a jury trial on that issue. Id. The jury awarded $861,264 to Lee, including $782,083 in severance damages for the loss in value the pipeline caused to the remainder of the property. Id. It awarded $463,439

4 To avoid confusion, we refer to the individual Thomases by their first names.

8 Opinion of the Court 21-11995

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Sabal Trail Transmission, LLC v. 2.468 Acres of Land in Levy County Florida, 59 F.4th 1158 (11th Cir. 2023).

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