Sabal Trail Transmission, LLC v. 3.921 Acres of Land in Lake County Florida

947 F.3d 1362
Court of Appeals for the Eleventh Circuit·Decided January 22, 2020·No. 18-11836·Published·Cited by 17 cases

Opinion

[PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT

No. 18-11836

D.C. Docket No. 5:16-cv-00178-JSM-PRL

SABAL TRAIL TRANSMISSION, LLC, Plaintiff - Appellant,

versus

3.921 ACRES OF LAND IN LAKE COUNTY FLORIDA, SUNDERMAN GROVES, INC, UNKNOWN OWNERS, IF ANY,

Defendants - Appellees.

Appeal from the United States District Court for the Middle District of Florida

(January 22, 2020)

Before WILLIAM PRYOR and JILL PRYOR, Circuit Judges, and ROBRENO,* District Judge.

JILL PRYOR, Circuit Judge:

The federal Natural Gas Act (“NGA”), 15 U.S.C. §§ 717-717z, allows natural gas companies to acquire through eminent domain private property on which to construct and operate natural gas pipelines. See 15 U.S.C. § 717f(h). After plaintiff Sabal Trail Transmission, LLC, received approval from the Federal Energy Regulatory Commission (“FERC”) to construct an underground natural gas pipeline from Alabama to Florida, it needed to acquire easements to build and operate the pipeline across property owned by various landowners.

Sabal Trail brought this condemnation action to acquire permanent and temporary easements that would allow it to build and operate a portion of the pipeline on property owned by defendant Sunderman Groves, Inc. Sunderman Groves stipulated in the action that Sabal Trail was entitled to the easements, leaving the appropriate amount of compensation as the only remaining issue. At trial, a jury awarded Sunderman Groves $309,500 as compensation for the easements. The district court then entered a final judgment, awarding Sunderman Groves $309,500 and providing that as part of the compensation award,

*

Honorable Eduardo C. Robreno, United States District Judge for the Eastern District of Pennsylvania, sitting by designation.

Sunderman Groves was entitled to recover its attorney’s fees and costs in an amount to be set by the court.

Sabal Trail raises two separate issues on appeal. First, it argues that it is entitled to a new trial because the district court abused its discretion in allowing Jan Sunderman, who owned Sunderman Groves, to give speculative lay opinion testimony about the remaining property’s value after the pipeline was built. Second, Sabal Trail challenges the district court’s decision to award Sunderman Groves its attorney’s fees and costs. We conclude that the district court did not abuse its discretion in allowing Sunderman to testify about the value of the property and that we lack jurisdiction to review whether Sunderman Groves is entitled to attorney’s fees and costs. Accordingly, we affirm in part and dismiss in part.

I. FACTUAL BACKGROUND This case arises from Sabal Trail’s construction of a 500-plus mile underground pipeline to transport natural gas from Alabama to Florida. FERC issued Sabal Trail a certificate of public convenience and necessity authorizing the construction and operation of the pipeline. The certificate authorized Sabal Trail to build the pipeline along a route where Sabal Trail held existing rights-of-way to much of the land needed for construction of the pipeline. For the remaining more than 200 miles of the route, Sabal Trail needed to acquire easements from

landowners to build the pipeline across the landowners’ properties. Although Sabal Trail was able to negotiate agreements with most landowners to purchase the necessary easements, some landowners would not agree.

A portion of the pipeline’s route ran across property owned by Sunderman Groves, a company owned by Charles and Jan Sunderman, who did not agree to allow Sabal Trail to purchase easements on their company’s property. Sunderman Groves owns approximately 500 acres of land spread across various parcels in Lake County, Florida. Sabal Trail sought to lay approximately 1,335 feet of pipeline in a diagonal path across a 40-acre parcel of Sunderman Groves’s property.

To build the pipeline across the parcel, Sabal Trail sought a permanent easement that would allow it to install and maintain the underground pipeline and related equipment. The permanent easement also would guarantee Sabal Trail the right to bar the Sundermans and any successive owner of the property from building any structure in the permanent easement area, allow Sabal Trail to remove any vegetation in the permanent easement area, and permit Sabal Trail to enter the remainder of the parcel to access the pipeline and related equipment. The total area Sabal Trail sought to condemn for the permanent easement was 1.535 acres. In addition, Sabal Trail also sought a larger, temporary easement to allow for the construction of the pipeline; the temporary easement covered 2.386 acres.

When Sunderman Groves would not agree to sell the easements, Sabal Trail sought to obtain the easements by exercising the power of eminent domain. See 15 U.S.C. § 717f(h) (allowing the holder of a certificate of public convenience and necessity to exercise the right of eminent domain to obtain an easement to construct and operate a natural gas pipeline). Pursuant to the NGA, Sabal Trail filed this condemnation action against Sunderman Groves.1 Sunderman Groves stipulated that Sabal Trail was entitled to the easements under the NGA. The parties continued to litigate about the amount of compensation Sabal Trail would pay Sunderman Groves for the easements. Because the parties could not agree on the amount, the district court held a jury trial on this issue. 2 During the course of a four-day trial, the jury heard evidence about the value of the land affected by the pipeline and the appropriate amount of compensation for the taking of the land. The parties agreed that Sunderman Groves was entitled to compensation for the value of the land taken for the permanent easement, the value of the land taken for the temporary easement, and severance damages to

1 Sabal Trail filed other similar condemnation actions to obtain easements in district courts in the Middle District of Alabama, Northern District of Florida, Middle District of Florida, and Middle District of Georgia.

2 By the time of the trial, Sabal Trail had completed construction of the section of pipeline crossing Sunderman Groves’s property.

compensate Sunderman Groves for the diminution in value of the remainder of the parcel after the condemnation. 3 The parties disagreed about each of these values.

At trial, both Sabal Trail and Sunderman Groves presented expert testimony from real estate appraisers. Sabal Trail’s appraiser, Richard Parham, opined that the total compensation owed to Sunderman Groves for the condemnation was $56,800: $8,100 for the value of the land taken for the permanent easement, $5,000 for the value of the land taken for the temporary easement, and $43,700 for severance damages. To calculate the severance damages, Parham compared the values of the remainder of the 40-acre parcel before and after the taking. In conducting this valuation, he determined that the parcel’s highest and best use was rural residential development with the parcel subdivided into two lots. Parham explained that the parcel, which consisted of approximately 26.5 acres of uplands, could be subdivided into no more than two lots because local zoning regulations required that each lot have at least 10 acres of uplands. After considering recent sales of similar lots in the area, Parham opined that prior to the condemnation the parcel was worth $7,000 per acre of uplands.

Parham then considered the value of the parcel after the condemnation. He found that the value of the remainder of the parcel had been reduced by the

3 See Damages, Black’s Law Dictionary (11th ed. 2019) (defining severance damages as “compensation awarded to a landowner for the loss in value of the tract that remains after a partial taking of the land”).

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Sabal Trail Transmission, LLC v. 3.921 Acres of Land in Lake County Florida, 947 F.3d 1362 (11th Cir. 2020).

947 F.3d 1362 (Sabal Trail Transmission, LLC v. 3.921 Acres of Land in Lake County Florida) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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