Spanish Cove Sanitation, Inc. v. Louisville-Jefferson County Metropolitan Sewer District

72 S.W.3d 918, 2002 Ky. LEXIS 80, 2002 WL 731801
CourtKentucky Supreme Court
DecidedApril 25, 2002
Docket2000-SC-000496-DG
StatusPublished
Cited by12 cases

This text of 72 S.W.3d 918 (Spanish Cove Sanitation, Inc. v. Louisville-Jefferson County Metropolitan Sewer District) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spanish Cove Sanitation, Inc. v. Louisville-Jefferson County Metropolitan Sewer District, 72 S.W.3d 918, 2002 Ky. LEXIS 80, 2002 WL 731801 (Ky. 2002).

Opinions

GRAVES, Justice.

In 1993, the Court of Appeals declared KRS 65.115 1, a statute which was enacted to provide compensation for taking sewage treatment utility property, unconstitutional as special legislation. Consequently, the Jefferson Circuit Court in this case correctly granted a motion to dismiss a subsequent complaint seeking recovery based on the same statute. Once an appellate court has declared a statute unconstitutional in its entirety, the statute cannot thereafter provide any rights or powers under Kentucky law.

Appellant, Spanish Cove Sanitation, owns a waste water treatment facility that is composed of grounds, equipment and pipe systems providing waste water and sewage treatment to residential customers in the Fern Creek area of Jefferson County. Appellee, Louisville-Jefferson County Metropolitan Sewer District, is a municipal corporation with the power to acquire land by eminent domain proceedings pursuant to KRS 76.110. Appellee, as part of its project to expand services into the Fern Creek area, planned to tie into the pipe system that served Appellant’s customers. This would render Appellant’s facility valueless. Appellee did not plan to pay Appellant, nor did it file an eminent domain action.

Appellant filed this action in the Jefferson Circuit Court asserting federal claims under the 5th and 14th Amendments of the United States Constitution and state claims under Sections 13 and 242 of the Kentucky Constitution relating to the taking of private property for public use without just compensation. Appellant also made a claim pursuant to KRS 65.115 which requires a public corporation that maintains a sewer service to compensate for taking the customers of another sewer service. Appellee filed a motion to dismiss the action for ripeness, as, at that point, Appellee had not yet tied into Appellant’s lines. Appellee also argued that the claim under KRS 65.115 should be dismissed because the Court of Appeals had found the statute unconstitutional in Monticello Co. v. Commonwealth of Kentucky, Natural Resources and Environmental Protection Cabinet, Ky.App., 864 S.W.2d 921 (1993).

The trial court granted the motion to dismiss, stating that the record reflected that the taken property had, in fact, been paid for. The Court of Appeals thereafter stated in an unpublished opinion that the ruling below indicated the trial court’s con[920]*920fusion between this case and a previous action between the same parties that had been resolved in another division of Jefferson Circuit Court.

The Court of Appeals’ opinion focused on KRS 65.115. In Monticello, the Court of Appeals deemed the statute special legislation 2, because it exempted urban county government from the provisions of the statute, an exemption which only applied to the Lexington-Fayette Urban County Government. In considering the instant case, the Court of Appeals panel opined that KRS 65.115 could be saved by severing out the unconstitutional language “other than an urban county” and leaving the rest of the statute intact. Thus, in the panel’s opinion the Monticello decision went too far and Appellant, in fact, had a cause of action. The panel referred the case for en banc consideration of this proposition and the entire Court split 7-7 on the question.

The Court of Appeals thereafter recommended transfer to this Court. We denied transfer because the taking had not actually occurred at the time the suit was filed and a judgment dismissing the claim was entered. On reconsideration by the en banc panel, the Court of Appeals held that the trial court had dismissed the case “with prejudice” and such a dismissal would operate to foreclose Appellant from presenting the case when the taking actually did occur.3 Further, the panel pointed to a notation on the trial court’s ruling concerning KRS 65.115:

An appeal should be taken in this action in regard to the interpretation of KRS 446.090 versus the interpretation of KRS 65.115. The issue of a lack of constitutional standing and the issue of special legislation should be decided by the appellate court.

KRS 446.0904 deals with severability of unconstitutional provisions from the balance of a statute.

Turning to the KRS 65.115 issue, the panel on reconsideration concluded it was bound by Monticello, supra, because a majority of the Court of Appeals had declined to overrule it. The panel then turned to a decision of the United States Court of Appeals for the Sixth Circuit for guidance, Calvert Investments, Inc. v. Louisville-Jefferson County Metropolitan Sewer District, 847 F.2d 304 (6th Cir. 1988), which held that the owner of the treatment facility had bare legal title to the pipes. However, the customers had the right of free usage of those pipes. Servicing those customers was deemed to be a mere expectancy and not a protected property interest. Id. at 308. Thus, the Court of Appeals panel concluded in this case that Appellant did not have an ave[921]*921nue by which to seek compensation. We granted discretionary review to address the concerns raised by Monticello and we now affirm the Court of Appeals’ decision.

At the outset, we should note that the trial court did not abuse its discretion in determining that the issue was not ripe. Under Kentucky law, before a plaintiff can make a claim of inverse condemnation, there must be an actual taking. Holloway Const. Co. v. Smith, Ky., 68B S.W.2d 248, 249 (1984). In Associated Industries of Kentucky v. Commonwealth, Ky., 912 S.W.2d 947 (1995), we held that Kentucky courts cannot grant advisory opinions or rule on hypothetical questions, but rather must rule on real disputes. At the time this action was filed, nothing had even arguably been taken.

Notwithstanding, Appellant’s claim would still fail based on the KRS 65.115 argument.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Perlstein v. Wolk
844 N.E.2d 923 (Illinois Supreme Court, 2006)
Romero v. Administrative Office of the Courts
157 S.W.3d 638 (Kentucky Supreme Court, 2005)
Dlx, Inc. v. Commonwealth of Kentucky
381 F.3d 511 (Sixth Circuit, 2004)
Ellis v. Gallatin Steel Co.
390 F.3d 461 (Sixth Circuit, 2004)
Ellis v. Gallatin Steel Company
390 F.3d 461 (Sixth Circuit, 2004)
DLX Inc v. Comwlth KY
Sixth Circuit, 2004

Cite This Page — Counsel Stack

Bluebook (online)
72 S.W.3d 918, 2002 Ky. LEXIS 80, 2002 WL 731801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spanish-cove-sanitation-inc-v-louisville-jefferson-county-metropolitan-ky-2002.