Spencer v Eversource

2017 DNH 212
District Court, D. New Hampshire·Decided September 28, 2017·No. 16-cv-353-JL·Published·Cited by 1 cases

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW HAMPSHIRE

Kevin Spencer, Mark Lagasse and Lagaspence Realty, LLC

v. Civ. No. 16-cv-353-JL Opinion No. 2017 DNH 212

Eversource Energy Service Co.

MEMORANDUM ORDER

The question presented in this case is whether the owner and lessee of an easement are required and indispensable parties to a lawsuit challenging the use of that easement. This case involves property owners’ efforts to prevent construction of electric transmission lines over an easement burdening plaintiffs’ property in Stark, New Hampshire, part of a 190-mile project known locally as the Northern Pass. The crux of plaintiffs’ complaint is that the proposed use of the easement is unreasonable and a breach of its express terms. Invoking this court’s diversity jurisdiction, 28 U.S.C. § 1332, they seek a declaratory judgment preventing the project, see 28 U.S.C. § 2201, and monetary damages.

Before the court are plaintiff’s motion to amend their complaint1 and defendant’s motion to dismiss.2 The plaintiffs’ proposed Amended Complaint updates developments within the state utility regulatory process and information regarding their potential damages.3 The defendant’s motion to dismiss posits two arguments: 1) that the court lacks subject-matter jurisdiction, Fed. R. Civ. P. 12(b)(1), because the complaint fails to satisfy the $75,000 amount-in-controversy threshold set forth in 28 U.S.C. § 1332(a); and 2) that the plaintiffs have failed to join two necessary and indispensable parties -- the owner and lessee of the easement, Fed. R. Civ. P. 12(b)(7) and 19.

After reviewing the parties’ submissions and hearing oral argument, the court first grants plaintiff’s motion to amend. The court further finds that although the Amended Complaint alleges sufficient facts (just barely) to satisfy the jurisdictional amount, it must be dismissed because the owner and lessee of the easement are both necessary and indispensable parties, their joinder would defeat the court’s diversity jurisdiction, and the case cannot “in equity and good

1 Doc. no. 21. 2 Doc. no. 9. 3 Counsel for both parties agreed at the motion hearing that the proposed Amended Complaint effected no substantive change in the plaintiffs’ claims.

conscience” proceed without them. 28 U.S.C. § 1332(c); Fed. R. Civ. P. 19(b). The court therefore grants defendant’s motion to dismiss.

I. Background The individual plaintiffs, Kevin Spencer and Mark Lagasse, are each owners of plaintiff Lagaspence Realty, LLC, which, in turn, owns the Percy Lodge and Campground in Stark, NH.4 Spencer and Lagasse are rebuilding an old boarding house to create a year-round lodge and convenience store.5 They have spent over $600,000 on the project.6 The property was, at all relevant times, encumbered by a power line easement granted to Public Service Company of New Hampshire (PSNH) by plaintiffs’ predecessor in title in 1946. The easement measures approximately 2950 feet by 150 feet and is presently occupied by an electric transmission line.7 The Northern Pass lines will run above and parallel to the existing lines and will be supported by steel lattice structures anchored to concrete foundations. Unlike the present power lines on the easement, the proposed

4 Amended Complaint, doc. no. 21-1, ¶¶ 1-3. 5 Id. ¶ 46. 6 Id. ¶ 47. 7 Id. ¶¶ 48, 55.

transmission lines will be visible from the plaintiffs’ planned lodge.8 Five of these structures are to be built on the easement at issue.9 The easement burdening plaintiffs’ land is still owned by PSNH, a New Hampshire corporation and regulated public utility.10 In October 2015, PSNH leased the easement to Northern Pass Transmission, LLC (NPT), a New Hampshire entity established in 2010 to construct and own the proposed transmission lines.11 NPT is a wholly-owned subsidiary of Eversource Energy Transmission Ventures, Inc., which is, in turn, a wholly-owned subsidiary of Eversource Energy, a Massachusetts holding company.12 PSNH is

8 Id. ¶ 75. 9 Id. 10 Id. ¶ 7; N.H. Rev. Stat. Ann. § 362:2. 11Id. ¶¶ 6, 18. Although PSNH and NPT have executed the lease, counsel indicated at the motion hearing that the lease does not take effect until approved by the New Hampshire Public Utilities Commission. 12Bersak Affidavit, doc. no. 9-2 ¶ 3. The court, as it is permitted to do, considers extrinsic evidence submitted by EESC, specifically, the Bersak affidavit, attached as Exhibit 2 to defendant’s motion. Doc. no. 9-2. See Scott v. First American Title Ins. Co., 2007 DNH 062 (noting that consideration of extrinsic evidence is permitted in Rule 19 context); Torres- Gonzalez v. HIMA San Pablo Caguas, 650 F. Supp. 2d 131, 134 (D.P.R. 2009) (“[T]he principle of conversion of a motion to dismiss into a motion for summary judgment when extrinsic materials are reviewed, does not apply in regards to a motion to dismiss for lack of subject matter jurisdiction.”) (citing

also a wholly owned Eversource Energy subsidiary.13 Defendant Eversource Energy Service Co. a Connecticut corporation, is also a wholly-owned subsidiary of Eversource Energy. It is a service company performing non-power related tasks, including the provision of administrative, accounting, engineering, financial and legal services, to other wholly-owned Eversource Energy subsidiaries,14 such as PSNH.15

II. Legal analysis The court, as is usually required, turns first to the jurisdictional question raised by defendant’s motion. See Dynamic Image Tech., Inc. v. United States, 221 F.3d 34, 38 (1st Cir. 2000) (“As a general matter, trial courts should give Rule 12(b)(1) motions precedence.”). After resolving that question -- in plaintiff’s favor -- the court will address the joinder issue.

Dynamic Image Techs., Inc. v. United States, 221 F.3d 34, 37 (1st Cir. 2000). 13 Id. ¶ 21. 14 Id. ¶ 6. 15 Id. ¶ 17.

A. Amount-in-controversy Pursuant to 28 U.S.C. § 1332, federal “district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs,” and there is diversity of citizenship. 28 U.S.C. § 1332(a). The amount in controversy in an action such as this seeking declaratory relief “is the value of the right or the viability of the legal claim to be declared . . . .” CE Design Ltd. v. Am. Econ. Ins. Co., 755 F.3d 39, 43 (1st Cir. 2014). Where, as here, there are multiple plaintiffs, each must allege a claim that is in excess of $75,000. Stewart v. Tupperware Corp., 356 F.3d 335, 337 (1st Cir. 2004). The plaintiff carries the burden to establish the jurisdictional minimum amount. Id. at 338.

“[T]he sum claimed by the plaintiff controls if the claim is apparently made in good faith. It must appear to a legal certainty that the claim is really for less than the jurisdictional amount to justify dismissal.” Id. (quoting St. Paul Mercury Indem. Co. v. Red Cab Co., 303 U.S. 283, 288–89 (1938)). A plaintiff’s “‘general allegation of damages that meet the amount requirement suffices unless questioned by the opposing party or the court.’” Id. (quoting Spielman v. Genzyme Corp., 251 F.3d 1, 5 (1st Cir. 2001)). However, once the

opposing party has questioned the amount, “‘the party seeking to invoke jurisdiction has the burden of alleging with sufficient particularity facts indicating that it is not a legal certainty that the claim involves less than the jurisdictional amount.’” Id. (quoting Spielman, 251 F.3d at 5). This burden may be met by amending pleadings or submitting affidavits. Dep't of Recreation & Sports of P.R. v. World Boxing Ass’n, 942 F.2d 84, 88 (1st Cir. 1991).

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