Sorrell v. Tennessee Gas Transmission Company

314 S.W.2d 193, 9 Oil & Gas Rep. 466, 1958 Ky. LEXIS 283
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedMarch 21, 1958
StatusPublished
Cited by17 cases

This text of 314 S.W.2d 193 (Sorrell v. Tennessee Gas Transmission Company) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sorrell v. Tennessee Gas Transmission Company, 314 S.W.2d 193, 9 Oil & Gas Rep. 466, 1958 Ky. LEXIS 283 (Ky. 1958).

Opinion

STEWART, Judge.

This is an appeal from a judgment declaring valid an agreement giving “the right, privilege and authority” to defendant-appellee, Tennessee Gas Transmission Company, to construct an additional pipe line under, upon, over and through the lands of plaintiffs-appellarits, Minnie Sor-rell and Allie Sorrell.

This controversy stems from the construction to be placed upon the language of the agreement entered into between the parties to this litigation, the relevant portions of which read:

“Know All Men By These Presents: That the undersigned, Minnie Sorrell and Allie Sorrell, (hereinafter called Grantor, whether one or more), for *194 and in consideration of the sum of Four Hundred Eighteen and 7¾00 ($418.75) Dollars, in hand paid, receipt of which is hereby acknowledged, does hereby grant, bargain, sell and convey unto Tennessee Gas Transmission Company, a Delaware corporation, its successors and assigns (hereinafter called Grantee), the right, privilege and authority for the purpose of laying, constructing, maintaining, operating, altering, repairing, removing, changing the size of and replacing pipe lines (with fittings, tie-overs and appliances, including Cathodic Protection equipment) for the transportation of oil, gas, petroleum products or any other liquids, gases or substances which can be transported through pipe lines, and of erecting, maintaining and removing a line of poles and appurtenances thereto for the operation thereon of telephone, telegraph and electric transmission lines, the Grantee to have the right to select, change or alter the routes under, upon, over and through lands which the undersigned owns or in which the undersigned has an interest situated in the County of Rowan, Commonwealth of Kentucky, described as follows: ”

Following a description of the property, the agreement continues:

“By the terms of the agreement Grantee has the right to lay, construct, maintain, operate, alter, repair, remove, change the size of and replace at any time or from time to time one or more additional lines of pipe, said additional lines not necessarily parallel to any existing line laid under the terms of this agreement and for each such additional line laid Grantee shall pay Grantor or his agent hereinafter designated his pro rata share of Two and 8¾00 ($2.85) Dollars per lineal rod of pipe line within sixty (60) days subsequent to the completion of the construction of such additional line.” (Italics supplied.)

Pursuant to the terms of this instrument appellee constructed and is now operating and maintaining a pipe line across the lands described in the agreement. Thereafter, on August 27, 1957, it notified appellants by letter it proposed to lay an additional line across their property and transmitted therewith a check for $111.45, this being the sum computed to be due them on the basis of $2.85 per lineal rod for 39.1 rods.

Subsequently appellants filed their complaint against appellee seeking a declaration of the rights of the parties under the agreement. They averred the recital therein providing for the construction of additional pipe lines is invalid and unenforceable because it is vague, uncertain and indefinite in its meaning and because it violates the rule against perpetuities. They also asked that appellee be permanently enjoined from building the proposed line or any additional lines under the agreement.

The lower court, after a hearing, pronounced the agreement clear, definite and unambiguous in its language, ruled appel-lee acquired a present vested expansible easement to construct additional lines, and that they need not be parallel across appellants’ land, and denied the request for in-junctive relief. On this appeal the two contentions advanced below are renewed.

As to the first ground relied upon for reversal, appellants reason that the provision granting additional line rights is merely a simple option to exercise a future right of purchase, which is unlimited as to time and indefinite in duration. They point out that there is nothing in the context of the agreement to indicate when, if ever, additional lines will be built. This fact, they assert, makes the agreement uncertain as to when it will be performed. They also maintain the agreement is vague as to where additional lines are to be laid. They advance these questions: Will future lines be placed at separate ends of the farm? Or will they be installed under permanent improvements and structures? They sum up their argument along the *195 line mentioned by emphasizing that the absence of the elements of ■when and where the additional lines are to be constructed under the agreement makes it void.

Although the type of agreement before us has never been passed upon in this jurisdiction, instruments practically similar in content have been upheld by other courts. The case of Caruthers v. Peoples Natural Gas Co., 155 Pa.Super. 332, 38 A.2d 713, 714, 162 A.L.R. 587, involved a right of way contract which granted unto the gas company the authority to construct a pipe line across property later acquired by one Carroll Caruthers and, among other things, provided that the gas company might “at any time lay an additional line of pipe alongside of the first line”. One of Caruthers’ predecessors in title permitted the first line to be built in 1906 pursuant to the contract. In 1940, the gas company, without Caruthers’ knowledge or consent, commenced work preparatory to installing a second line. An injunction proceeding was instituted to halt the gas company’s activity. The same contention was made there, as is now posed here, that the instrument did not bestow upon the gas company a vested easement but merely an option to purchase one at an indefinite future time. The Pennsylvania court had no difficulty in finding that the instrument in unambiguous terms conveyed a presently vested easement, as distinguished from an option to acquire future additional servitudes.

In dealing with this identical question, the Restatement of Law of Property, Chapter 27, Section 393, Comment j, page 2321, has this to say: “Frequently the owner of land, in granting an easement or profit, requires that the grantee make payments of money at future dates, the time and amount of such payments being determined by the number of trees cut from time to time, or by the extent of the land utilized in the development of the easement or profit. To the extent that such agreement is found to constitute the creation of present rights in the servient land with payment for some of these rights postponed, no ‘option’ is sought to be created * *

The right or privilege granted under the terms of the instant agreement is much broader than the easement construed in the Caruthers case, cited above. That case dealt with an easement that required each additional line to be laid “alongside” any other lines previously laid, whereas the agreement in the case at bar allows additional lines to be laid across any portion of the land. An agreement identical with the one under consideration is set forth in Baker v. Tennessee Gas Transmission Co., 194 Tenn. 368, 250 S.W.2d 566

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Bluebook (online)
314 S.W.2d 193, 9 Oil & Gas Rep. 466, 1958 Ky. LEXIS 283, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sorrell-v-tennessee-gas-transmission-company-kyctapphigh-1958.