Schultz v. SOUTHEAST SUPPLY HEADER, LLC

661 F. Supp. 2d 1260, 177 Oil & Gas Rep. 1000, 2009 U.S. Dist. LEXIS 86240, 2009 WL 3075670
CourtDistrict Court, S.D. Alabama
DecidedSeptember 21, 2009
DocketCivil Action 1:09-00055-KD-C
StatusPublished
Cited by2 cases

This text of 661 F. Supp. 2d 1260 (Schultz v. SOUTHEAST SUPPLY HEADER, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schultz v. SOUTHEAST SUPPLY HEADER, LLC, 661 F. Supp. 2d 1260, 177 Oil & Gas Rep. 1000, 2009 U.S. Dist. LEXIS 86240, 2009 WL 3075670 (S.D. Ala. 2009).

Opinion

ORDER

KRISTI K. DuBOSE, District Judge.

This matter is before the Court on Defendant’s Motion for Summary Judgment (Docs. 13,14), Plaintiffs Response in opposition (Docs. 17, 18) and Defendants’ Reply thereto (Docs. 20, 21); Defendant’s Motion to Strike Affidavit of Donald Schultz (Doc. 22). The Magistrate Judge’s Report and Recommendation (Doc. 25) regarding Defendant’s Motion to Dismiss and/or Strike (Docs. 4, 5), to which Objection has been filed (Doc. 29), is also pending. For the reasons set forth herein, Defendant’s Motion for Summary Judgment (Doc. 13) is GRANTED, and Defendant’s Motion to Strike Affidavit of Donald Schultz (Doc. 22) and Motion to Dismiss and/or Strike (Docs. 4, 25) are DENIED as moot. Further, the Clerk of Court is ordered to TERMINATE as moot the Magistrate Judge’s Report and Recommendation (Doc. 25).

I. Background

Plaintiffs Donald and Erin Schultz (“the Schultzes”), who are citizens of Alabama, instituted this suit, which includes claims for negligence, trespass, nuisance, and inverse condemnation. (Doc. 1). Diversity jurisdiction obtains pursuant to 28 U.S.C. § 1331 (Docs. 1, 6, 33), and the parties do not dispute that Alabama law governs the substance of this dispute. {See Docs. 14, 17).

A. The Parties

Plaintiffs own approximately forty (40) acres in Irvington, Alabama, as well as a “homeplace and appurtenant structures and improvements” built thereon. (Doc. 1).

Defendant Southeast Supply Header (“SESH”) is a Delaware limited liability corporation consisting of two members: *1262 CenterPoint Energy Gas Transmission, Inc., a Delaware corporation with its principal place of business in Texas (Docs. 6, 35), and Spectra Energy Transmission, LLC, a Delaware limited liability company. (Doc. 6). Spectra Energy Transmission, in turn, is wholly owned by Spectra Energy Corp, a Delaware corporation. (Doc. 33).

In early 2008, Defendant negotiated with Plaintiffs to acquire an easement that included a fifty-foot wide permanent right-of-way and an additional temporary workspace easement. (Docs. 1, 14). Defendant planned to install a long-haul natural gas pipeline running from northeastern Louisiana into southern Mobile County, Alabama. (Id.) After Defendant succeeded in purchasing the easement from Plaintiffs, it installed the natural gas pipeline across Plaintiffs’ property. (Id.)

B. Claims

Plaintiffs contend Defendant damaged their 40-acre Irvington property in the course of installing pipeline to the northwest of the property, “during which time the Defendant SESH stripped the land northwest of [Plaintiffs’] property ... of natural vegetation and placed wood matting so as to walk equipment to the project site and during the course of stripping the land to the northwest removed vegetation and trees that would otherwise scatter and absorb rainwater and the flow of stormwater.” (Doc. 1, ¶¶ 1, 3). Plaintiffs further allege that, “in addition to creating [this] swale of open land to the northwest of Plaintiffs, which property was otherwise previously vegetated and wooded,” Defendant “breached the bank of Fowl River Tributary No. 3 and on or about August 15, 2008 moved the matting for the area northwest of [Plaintiffs’] property ... extending from Cook Avenue to Fowl River Tributary No. 3 causing waters flowing through Fowl River Tributary to be directed onto [Plaintiffs’] property....” (Id. ¶ 4). Plaintiffs claim that as a result of Defendant’s “removal of the matting,” Plaintiffs’ property was “inundated and converted into a holding pond for the Defendant’s easement stormwater runoff’ when it rained. (Id. ¶ 5).

Plaintiffs further claim that on August 20, 2008, Plaintiff Donald Schultz informed the Defendant’s representatives that:

due to the breaching of the creek bank, which was a navigable water known as Fowl River Tributary No. 3, and the removal of the wooden matting or the staging area for construction on the Defendant’s easement, and the removal by the Defendant of vegetation and wooded areas from the Defendant’s easement, the easement was acting as a conduit or channel for waters from the Fowl River Tributary No. 3 and stormwater onto [Plaintiffs’] properties ... inundating the unimproved property of the Plaintiffs as well as silting a pond constructed on [Plaintiffs’] property and causing the septic tank system around [Plaintiffs’] homeplace ... to malfunction resulting in effluent from the septic tank system and tank to be deposited on the surface.

(Id. ¶ 6). According to Plaintiffs, after receiving this notice Defendant took no action to alleviate the stormwater runoff and flooding that allegedly occurred as a result of the pipeline construction until October, 2008, after Plaintiffs retained counsel in connection with this dispute. (Id. ¶¶ 7-8)

Plaintiffs further allege that, as a result of the foregoing, Plaintiffs’ property has been rendered unuseable and has essentially been reduced to a retention pool or holding pond for runoff from Defendant’s construction site and has diminished in value as a result. (Id. ¶¶ 10-11, 14, 17). The Plaintiffs also claim that they have incurred physical pain and discomfort as well as severe inconvenience and mental anguish as a result of the foregoing. (Id. *1263 ¶¶ 11, 14, 17, 20). In addition, Plaintiffs make claims for punitive damages and costs. (Id. ¶¶ 14,17).

1. Negligence

The first count of Plaintiffs complaint alleges that the above-described acts and omissions constitute negligence that proximately caused Plaintiffs’ property (which includes a homeplace, pond, swimming pool, and septic tank system) to be flooded and rendered unuseable, and that the property has diminished in value as a result. (Id. ¶¶ 1-11)

2. Trespass

In the second count of the Complaint, Plaintiffs claim that Defendant, after receiving notice, caused or allowed water, sedimentation, and construction debris to be diverted onto Plaintiffs’ property, and that this constitutes a continuing trespass. (Id. ¶¶ 12-14)

3. Nuisance

The third count of the Complaint alleges that Defendant’s “continuing maintenance” of the “construction site ... in its present condition” and the failure to remediate or alleviate the stormwater runoff resulting from the above-described activities constitutes a continuing nuisance. Plaintiffs claim that this alleged nuisance rendered the use and enjoyment of the Plaintiffs’ homeplace and property impossible and proximately caused a threat to their health and safety due to the damage to their septic tank and field line. (Id. ¶¶ 15-17)

4. Inverse Condemnation

In the final count, Plaintiffs claim that Defendant’s “continuous conduct” as described above constitutes “a taking and ...

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Bluebook (online)
661 F. Supp. 2d 1260, 177 Oil & Gas Rep. 1000, 2009 U.S. Dist. LEXIS 86240, 2009 WL 3075670, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schultz-v-southeast-supply-header-llc-alsd-2009.