TC&C Real Estate Holdings, Inc. v. ETC Katy Pipeline, LTD., as Successor in Interest to ETC Texas Pipeline, LTD.

CourtCourt of Appeals of Texas
DecidedDecember 20, 2017
Docket10-16-00134-CV
StatusPublished

This text of TC&C Real Estate Holdings, Inc. v. ETC Katy Pipeline, LTD., as Successor in Interest to ETC Texas Pipeline, LTD. (TC&C Real Estate Holdings, Inc. v. ETC Katy Pipeline, LTD., as Successor in Interest to ETC Texas Pipeline, LTD.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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TC&C Real Estate Holdings, Inc. v. ETC Katy Pipeline, LTD., as Successor in Interest to ETC Texas Pipeline, LTD., (Tex. Ct. App. 2017).

Opinion

IN THE TENTH COURT OF APPEALS

No. 10-16-00134-CV

TC&C REAL ESTATE HOLDINGS, INC., Appellant v.

ETC KATY PIPELINE, LTD., AS SUCCESSOR IN INTEREST TO ETC TEXAS PIPELINE, LTD., Appellee

From the 87th District Court Limestone County, Texas Trial Court No. 27,197-B

MEMORANDUM OPINION

On February 23, 2004, ETC Texas Pipeline, Ltd.1, filed a Statement and Petition in

Condemnation against TC&C Real Estate Holdings, Inc. After a hearing, the Special

Commissioners awarded TC&C $2591.00 as compensation for the easements sought by

1ETC Texas Pipeline, Ltd.’s Petition in Condemnation was amended to reflect ETC Texas Pipelines, Ltd.’s Conveyance, Assignment and Bill of Sale to ETC Katy Pipeline, Ltd. ETC Texas Pipeline and ETC Katy Pipeline are collectively referred to as ETC. ETC. TC&C objected to the award and filed a plea to the jurisdiction and a motion to

dismiss. The trial court granted ETC’s partial motion for summary judgment and denied

TC&C’s partial motion for summary judgment. On February 22, 2016, a jury was

empaneled; however, some issues were tried to the trial court. The jury awarded TC&C

$50,000 for the value of the easement and for damages. In accordance with the jury

verdict, the trial court ordered that TC&C recover from ETC $50,000. TC&C appeals from

the trial court’s judgment. We affirm.

Jurisdiction

In the first seven issues on appeal, TC&C argues that the trial court erred in its

findings on jurisdiction. Conclusions of law are reviewed de novo. Perez v. Old West

Capital Company, 411 S.W.3d 66, 75 (Tex.App.-El Paso 2013, no pet.). The trial court's

findings of fact have the same weight as a jury verdict, and we review the legal and

factual sufficiency of the evidence as we would a jury's findings. Perez v. Old West Capital

Company, 411 S.W.3d at 74. If there is more than a scintilla of evidence supporting a

finding of fact, we will overrule a legal sufficiency challenge. Id. In reviewing a factual

sufficiency challenge, we consider all of the evidence and will set aside a finding only if

it is so against the great weight and preponderance of the evidence as to be clearly wrong

and unjust. Id. The trial court concluded as a matter of law:

 This Court has jurisdiction over the subject matter and parties hereto.  Public use and necessity for the pipeline and the Easements are established by one or more of the following: (1) legislative declaration, (2) classification and regulation of the pipeline at issue as part of ETC’s TC&C v. ETC Page 2 gas utility pipeline system, (3) ETC’s ownership or operation for compensation in Texas of equipment or facilities to transmit or distribute combustible hydrocarbon natural gas for sale or resale in a manner not subject to federal jurisdiction, and, or (4) ETC’s ownership, management, operation, lease, or control in Texas of a gas utility pipeline system for a business that transports, conveys, distributes, or delivers natural gas for public use or service for compensation or its ownership, operation, or management of a pipeline that is for transporting or carrying natural gas whether for public hire or not and for which right-of-way has been acquired by exercising the right of eminent domain.  ETC is a gas corporation and ETC’s pipeline at issue is part of a gas utility pipeline system as gas utility is defined in the Texas Utilities Code.  As a gas corporation under the Texas Utilities Code, ETC has the power to enter on, condemn, and appropriate the land, right-of-way, easement, or other property of any person or corporation, including the Easements on, over, across, and under the Property.  ETC’s pipeline and gas utility system of which said pipeline is a part, serve the public use and ETC duly and properly declared the necessity of the pipeline extension (at issue in this case) to its existing gas utility pipeline system and the necessity of the lands rights and easements needed in connection therewith, including the Easements on, over, across and under the property.  ETC has strictly complied with the statutes authorizing this eminent domain proceeding.  ETC has the legal capacity to bring this eminent domain proceeding and the legal capacity to be entitled to recover the Easements.

TC&C first argues that ETC failed to satisfy jurisdictional requirements because it

did not show that the pipeline is for an actual public use. TC&C argues that it is the

condemnor’s burden to show constitutionally sufficient actual public use of the property

to be condemned citing Texas Rice Land Partners, Ltd., v. Denbury Green Pipeline-Texas, LLC,

363 S.W.3d 192 (Tex.2012) as authority.

TC&C v. ETC Page 3 The Texas Constitution safeguards private property by declaring that eminent

domain can only be exercised for “public use.” Tex. Rice Land Partners, Ltd. v. Denbury

Green Pipeline-Tex., LLC, 363 S.W.3d at 194 (quoting Texas Constitution art. I, § 17). The

ultimate question of whether a particular use is a public use is a judicial question to be

decided by the courts as a matter of law. Tex. Rice Land Partners, Ltd. v. Denbury Green

Pipeline-Tex., LLC, 363 S.W.3d at 198 n. 16; Housing Authority of Dallas v. Higginbotham, 135

Tex. 158, 143 S.W.2d 79, 84 (1940); Saner v. BridgeTex Pipeline Company, LLC, No. 11-14-

00199-CV, 2016 Tex.App. LEXIS 7764 *3 (Tex.App.-Eastland July 21, 2016, pet. den’d).

Denbury involved a carbon dioxide (CO sub2) pipeline company that had been

granted the power of eminent domain by the Railroad Commission as a "common carrier"

pipeline company pursuant to the provisions of the Natural Resources Code. Tex. Rice

Land Partners, Ltd. v. Denbury Green Pipeline-Tex., LLC, 363 S.W.3d at 194-95; see TEX. NAT.

RES. CODE ANN. § 111.002(6) (West 2011). The Texas Supreme Court held that a

landowner can challenge the eminent-domain power of the pipeline company by

contesting whether the proposed pipeline will in fact be public, rather than private. Id. at

195.

In Denbury, the Court held that to qualify as a common carrier with the power of

eminent domain, the pipeline must serve the public; it cannot be built only for the

builder's exclusive use. Tex. Rice Land Partners, Ltd. v. Denbury Green Pipeline-Tex., LLC,

TC&C v. ETC Page 4 363 S.W.3d at 200. The Court noted that extending the power of eminent domain to the

taking of property for a private use cannot survive constitutional scrutiny. Id.

The Court established a test to determine what qualifies as public use for a carbon

dioxide pipeline and held that, "for a person intending to build a CO sub2 pipeline to

qualify as a common carrier under Section 111.002(6), a reasonable probability must exist

that the pipeline will at some point after construction serve the public by transporting

gas for one or more customers who will either retain ownership of their gas or sell it to

parties other than the carrier." Tex. Rice Land Partners, Ltd. v. Denbury Green Pipeline-Tex.,

LLC, 363 S.W.3d at 202; Saner v. BridgeTex Pipeline Company, LLC, at *4. The Court in

Denbury court stated "Our decision today is limited to persons seeking common-carrier

pipeline status under Section 111.002(6). We express no opinion on pipelines where

common-carrier status is at issue under other provisions of the Natural Resources Code

or elsewhere.” Tex. Rice Land Partners, Ltd. v. Denbury Green Pipeline-Tex., LLC, 363 S.W.3d

at 202 n. 28.

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TC&C Real Estate Holdings, Inc. v. ETC Katy Pipeline, LTD., as Successor in Interest to ETC Texas Pipeline, LTD., Counsel Stack Legal Research, https://law.counselstack.com/opinion/tcc-real-estate-holdings-inc-v-etc-katy-pipeline-ltd-as-successor-in-texapp-2017.