Sabal Trail Transmission, LLC v. Real Estate

255 F. Supp. 3d 1213, 2017 WL 2434533, 2017 U.S. Dist. LEXIS 85961
CourtDistrict Court, N.D. Florida
DecidedJune 5, 2017
DocketCase No. 1:16-cv-063-MW-GRJ
StatusPublished
Cited by22 cases

This text of 255 F. Supp. 3d 1213 (Sabal Trail Transmission, LLC v. Real Estate) is published on Counsel Stack Legal Research, covering District Court, N.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sabal Trail Transmission, LLC v. Real Estate, 255 F. Supp. 3d 1213, 2017 WL 2434533, 2017 U.S. Dist. LEXIS 85961 (N.D. Fla. 2017).

Opinion

ORDER DENYING PLAINTIFF’S MOTION FOR PARTIAL SUMMARY JUDGMENT

Mark E. Walker, United States District Judge

“[T]he dichotomy between personal liberties and property rights is a false one. Property does not have rights. People have rights[, such as t]he right to enjoy property without unlawful deprivation .... That rights in property are basic civil rights has long been recognized.” Lynch v. Household Fin. Corp., 405 U.S. 538, 552, 92 S.Ct. 1113, 31 L.Ed.2d 424 (1972) (citations omitted). Those basic civil rights also dictate that private property owners must be compensated when their property is taken for public use.

This case presents a related, straightforward choice-of-law question. What substantive law controls the amount of compensation due to a private landowner for the taking of his or her property by a [1215]*1215private entity exercising federal eminent-domain authority — federal or state law? If federal law controls, Defendants are not entitled to litigation expenses. But if state law controls, they are.

Because Eleventh Circuit precedent— and the .overwhelming weight of authority — teaches that state substantive law controls, Plaintiffs. Motion for Partial Summary Judgment, ECF No. 69, is DENIED.

I

Sabal Trail Transmission, LLC (“Plaintiff’) proposes to construct 516.2 miles of mainline pipeline in Alabama, Georgia, and Florida, known as the Sabal Trail Project (“Project”). ECF No. 1, at 3-4. Plaintiff also proposes associated lateral pipelines in Florida, five new compressor stations, and a hub in Central Florida. Id. at 4. The Project will supply natural gas to Florida Power <& Light Company and Duke Energy Florida, LLC, for -their power-generation needs. Id. at 3-4.

The Federal Energy Regulatory Commission (“FERC”) issued Plaintiff a Certificate of Public Convenience and Necessity (“FERC Certificate”) for the Project. Id. at 3. As holder -of that FERC Certificate, § 717f(h) of the Natural Gas Act authorizes Plaintiff to “exercise ... the right of eminent domain” and bring a condemnation action against private property owners for any property needed to construct, operate, or maintain a pipeline or associated facilities. 15 U.S'.C. § 717f(h) (2012).

Plaintiff initiated an eminent-domain condemnation action against multiple private property owners (“Defendants”). ECF No. 1. Plaintiff then filed a Motion for Partial Summary Judgment, asserting that the Fifth Amendment to the United States Constitution’s “just compensation” measure — which does not include the property owner’s litigation expenses in an eminent-domain condemnation action — governs. ECF No. 69, at 1; see also United States v. Bodcaw Co., 440 U.S. 202, 203, 99 S.Ct. 1066, 59 L.Ed.2d 267 (1979) (“Thus, ‘[attorneys’ fees, and expenses are not .embraced within just compensation (quoting Dohany v. Rogers, 281 U.S. 362, 368, 50 S.Ct., 299, 74 L.Ed. 904 (1930))). Defendants disagree, and argue that the Florida. Constitution’s “full compensation” measure — which includes reasonable attorney’s fees and expenses — governs. ECF No. 81, at 1-2; see also Fla. Const, art. X, § 6(a) (“No private property shall be taken except for a public purpose and with full compensation therefor paid to each owner .... ” (emphasis added)); Joseph B. Doerr Trust v. Cent. Fla. Expressway Auth., 177 So.3d 1209, 1215 (Fla. 2015) (holding that it is “fundamentally clear” that the definition- of full -compensation -under. Florida’s Constitution includes reasonable attorney’s fees (citations omitted)).

n

Summary judgment is appropriate when “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). The parties agree to all material facts; thus, the only disputes relate to questions of law. “Where the unresolved issue's, are primarily legal rather than factual, summary judgment is particularly appropriate.” Bruley v. Vill. Green Mgmt. Co., 592 F.Supp.2d 1381, 1388 (M.D. Fla. 2008) (quoting Uhl v. Swanstrom, 79 F.3d 751, 754 (8th Cir. 1996)).

Ill

Plaintiff contends that the Fifth Amendment’s “just .compensation”, measure controls because federal law supplies the exclusive measure of compensation in Natural Gas- Act condemnation proceedings. This Court disagrees;

[1216]*1216A

Federal law governs questions involving the rights and liabilities under the Natural Gas Act. See United States v. Kimbell Foods, Inc., 440 U.S. 715, 726, 99 S.Ct. 1448, 59 L.Ed.2d 711 (1979) (“[F]ed-eral law governs questions involving the rights of the United States arising under nationwide federal programs.”). But that does not mean that federal law necessarily applies. See id. at 727-28, 99 S.Ct. 1448 (“Controversies directly affecting the operations of federal programs, although governed by federal law, do not inevitably require resort to uniform federal rules.” (citations omitted)). “Instead, ^whether to adopt state law or to fashion a national federal rule is a matter of judicial policy dependent upon a variety of considerations always relevant to the nature of the specific governmental interests and to the effects upon them of applying state law.’” Redwing Carriers, Inc. v. Saraland Apartments, 94 F.3d 1489, 1500 (11th Cir. 1996) (quoting Kimbell Foods, 440 U.S. at 728, 99 S.Ct. 1448).

In that scenario, courts must first start “with the premise that state law should supply the federal rule unless there is an expression of legislative intent to the contrary, dr, failing that, a showing that state law conflicts significantly with any federal interests or policies .... ” Ga. Power Co. v. Sanders, 617 F.2d 1112, 1116 (5th Cir. 1980)1 (citing Wallis v. Pan Am. Petroleum Corp., 384 U.S. 63, 68, 86 S.Ct. 1301, 16 L.Ed.2d 369 (1966)). When deciding whether there is a “significant conflict” between a federal policy or interest and the application of state law, id. at 1117 (quoting Wallis, 384 U.S. at 68, 86 S.Ct. 1301), courts consider the following factors: “(1) the need for a nationally uniform body of law, (2) whether the application of state law would frustrate specific objectives of the federal program at issue, and (3) the extent to which application of a federal rule would upset commercial relationships predicated on state law.” Columbia Gas Transmission Corp. v. Exclusive Nat. Gas Storage Easement, 962 F.2d 1192, 1195-96 (6th Cir. 1992) (citing Kimbell Foods, 440 U.S. at 728-29, 99 S.Ct. 1448).

B

This Court’s analysis begins with the language of the Natural Gas Act. See id. at 1197 (beginning a similar case “with the statutory language”).

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255 F. Supp. 3d 1213, 2017 WL 2434533, 2017 U.S. Dist. LEXIS 85961, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sabal-trail-transmission-llc-v-real-estate-flnd-2017.