Super Mix of Wisconsin, Inc. v. Natural Gas Pipeline Co. of America, LLC

2020 IL App (2d) 190034
CourtAppellate Court of Illinois
DecidedMay 5, 2021
Docket2-19-0034
StatusPublished
Cited by10 cases

This text of 2020 IL App (2d) 190034 (Super Mix of Wisconsin, Inc. v. Natural Gas Pipeline Co. of America, LLC) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Super Mix of Wisconsin, Inc. v. Natural Gas Pipeline Co. of America, LLC, 2020 IL App (2d) 190034 (Ill. Ct. App. 2021).

Opinion

Digitally signed by Reporter of Decisions Reason: I attest to Illinois Official Reports the accuracy and integrity of this document Appellate Court Date: 2021.05.04 16:05:17 -05'00'

Super Mix of Wisconsin, Inc. v. Natural Gas Pipeline Co. of America, 2020 IL App (2d) 190034

Appellate Court SUPER MIX OF WISCONSIN, INC., and JACK PEASE, Plaintiffs- Caption Appellants, v. NATURAL GAS PIPELINE COMPANY OF AMERICA, LLC, Defendant-Appellee.

District & No. Second District No. 2-19-0034

Rule 23 order filed November 26, 2019 Rehearing denied January 16, 2020 Motion to publish allowed January 28, 2020 Opinion filed January 28, 2020

Decision Under Appeal from the Circuit Court of McHenry County, No. 18-MR-534; Review the Hon. Thomas A. Meyer, Judge, presiding.

Judgment Affirmed.

Counsel on Sandra Kerrick, of The Waggoner Law Firm, P.C., of Crystal Lake, Appeal for appellants.

John M. Spesia, Jacob E. Gancarczyk, and Jonathan W. Powell, of Spesia & Taylor, of Joliet, for appellee. Panel JUSTICE BURKE delivered the judgment of the court, with opinion. Presiding Justice Birkett and Justice Schostok concurred in the judgment and opinion.

OPINION

¶1 Plaintiffs, Super Mix of Wisconsin, Inc. (Super Mix), and Jack Pease, acquired interest in a parcel near Hebron in 2003 and began mining sand and gravel. Plaintiffs acquired the parcel subject to a pipeline easement granted in 1945 to defendant, Natural Gas Pipeline Company of America, LLC. Defendant has operated a pipeline within the boundary of the easement since 1945. In 2015, as plaintiffs’ operation proceeded toward the pipeline, plaintiffs asked defendant to reroute it, and defendant refused. ¶2 Plaintiffs filed a two-count complaint for (1) a declaratory judgment regarding the parties’ rights under the easement and (2) damages for inverse condemnation. The trial court dismissed the complaint with prejudice under section 2-619(a)(5) of the Code of Civil Procedure (Code). 735 ILCS 5/2-619(a)(5) (West 2018). The court held that plaintiffs’ claims were time barred, and plaintiffs appeal. ¶3 Plaintiffs essentially argue that (1) by operating the pipeline and obstructing plaintiffs’ access to the sand and gravel beneath it, defendant is asserting mineral rights that the easement did not convey, (2) enforcement of the easement constitutes an unconstitutional taking of plaintiffs’ mineral property, and (3) plaintiffs’ cause of action did not accrue until 2015, when they decided to mine the sand and gravel beneath the pipeline, and therefore their claims are not barred by any statute of limitations. We affirm the dismissal on the ground that plaintiffs’ claims are time barred.

¶4 I. BACKGROUND ¶5 Defendant purchased the pipeline easement on a parcel near Hebron and recorded the easement with the McHenry County Recorder in 1945. The easement permits defendant to “maintain, operate, inspect, alter, repair and remove” a pipeline in a 49.5-foot-wide right-of- way. Since 1945, defendant has operated and maintained a four-inch natural gas pipeline within a ditch measuring 49.5 feet wide. The ditch crosses plaintiffs’ property diagonally. ¶6 In 2003, plaintiffs acquired the property, subject to the easement. Plaintiffs are in the business of mining sand and gravel, manufacturing concrete from sand and gravel, and developing land to reclaim their mines to viable economic future uses. Plaintiffs started mining at the western edge of the property and progressed toward the east. ¶7 In 2015, as the mining operation approached the pipeline, plaintiffs allegedly offered defendant a new easement. Plaintiffs proposed that defendant remove the old pipes and reroute the pipeline along plaintiffs’ property boundary, thereby removing the obstruction to the mine. Defendant rejected the proposal. ¶8 On July 20, 2018, plaintiffs filed a two-count complaint. Count I sought a declaration of easement rights and damages arising from the “presence” of the pipeline. Section 15 of the easement agreement provides that

-2- “Grantee agrees to pay the Grantor, or his assigns *** all damages to personal or real property, arising directly or indirectly from the laying, maintaining, operation, altering, repairing or removing of said pipeline, or because of its presence, even though said damages may be occasioned by causes over which the Grantee has no control, the act of God and the public enemy excepted.” ¶9 Specifically, count I alleged that, “[b]ecause of the presence of the pipeline in a diagonal route through the middle of the property, plaintiffs are suffering large damages for the loss of the mineral deposits and inability to reclaim the mine ‘to optimum future productive use’ as provided by public policy in the Surface-Mined Land Conservation and Reclamation Act [(225 ILCS 715/2 (West 2018))].” Plaintiffs claimed damages amounting to the loss of the value of the minerals beneath a 160- foot-wide embankment that they claimed was necessary to support the pipeline. ¶ 10 Plaintiffs claimed that their mineral rights are superior to defendant’s easement. Count I asserted that the parties’ disagreement over their respective rights under section 15 of the easement agreement created a case or controversy appropriate for declaratory judgment. ¶ 11 Count II, the claim for inverse condemnation, alleged that defendant is a utility regulated by the Illinois Commerce Commission (Commerce Commission) or the United States Federal Energy Regulatory Commission (FERC), with eminent domain authority to condemn rights- of-way for natural-gas-pipeline purposes. Neither the Commerce Commission nor the FERC had authorized defendant to condemn plaintiffs’ mineral rights beneath the pipeline and in the 160-foot-wide embankment. ¶ 12 Count II alleged that barring the mining of all the minerals beneath the embankment constitutes a regulatory taking of the mineral rights without just compensation, as prohibited by the fifth and fourteenth amendments to the United States Constitution (U.S. Const., amends. V, XIV) and sections 2, 5, and 15 of article I of the Illinois Constitution (Ill. Const. 1970, art. I, §§ 2, 5, 15). Plaintiffs alleged that failure to allow the reclamation to a future productive use caused by the pipeline’s presence should be compensated as damages to the remainder. Plaintiffs claimed that, because they cannot mine unless the pipeline is rerouted, defendant had effectively appropriated the minerals. ¶ 13 Count II sought a finding that “[p]laintiffs’ inability to mine the minerals beneath the easement and a 160-foot supporting embankment” and “[p]laintiffs’ inability to reclaim the gravel mine for a future productive use because of the presence of the pipeline cutting the property in half” amount to an inverse condemnation, constituting a public regulatory taking by defendant. Plaintiffs sought damages based on the proposed finding. ¶ 14 On September 20, 2018, defendant moved to dismiss the complaint with prejudice under section 2-619(a)(5) of the Code, which permits a defendant to raise a statute of limitations as grounds for dismissal. 735 ILCS 5/2-619(a)(5) (West 2018). Defendant argued that count I was barred by the five-year statute of limitations that applies to declaratory relief claims involving personal or real property (735 ILCS 5/13-205 (West 2018)). Defendant alternatively argued that, because count I involved the easement, the claim was barred by the 10-year statute of limitations for actions based on written contracts (735 ILCS 5/13-206 (West 2018)).

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Bluebook (online)
2020 IL App (2d) 190034, Counsel Stack Legal Research, https://law.counselstack.com/opinion/super-mix-of-wisconsin-inc-v-natural-gas-pipeline-co-of-america-llc-illappct-2021.