the Crawford Family Farm Partnership v. TransCanada Keystone Pipeline, L. P.

409 S.W.3d 908, 181 Oil & Gas Rep. 239, 2013 WL 4519769, 2013 Tex. App. LEXIS 10733
CourtCourt of Appeals of Texas
DecidedAugust 27, 2013
Docket06-12-00113-CV
StatusPublished
Cited by10 cases

This text of 409 S.W.3d 908 (the Crawford Family Farm Partnership v. TransCanada Keystone Pipeline, L. P.) 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.

Bluebook
the Crawford Family Farm Partnership v. TransCanada Keystone Pipeline, L. P., 409 S.W.3d 908, 181 Oil & Gas Rep. 239, 2013 WL 4519769, 2013 Tex. App. LEXIS 10733 (Tex. Ct. App. 2013).

Opinion

OPINION

Opinion by

Justice MOSELEY.

I. Background

This is a case regarding an exercise of the right of eminent domain by a nongovernmental entity. Historically, Americans in general and Texans in particular have placed great value on individual property rights and looked askance at the exercise of the power of eminent domain. Both Amendment V of the United States Constitution and Article I, Section 17 of the Texas Constitution prohibit the taking of private property without just compensation. As recently as 2009, the voters of Texas were presented with a proposed amendment to the State Constitution, which appeared on the ballot as Proposition Eleven, entitled, “Limits on power of eminent domain.” According to the Office of the Secretary of State of Texas, the proposition passed by a vote of 81.01 percent in favor and 18.98 percent opposed. 1

Even so, from an early date in its history, Texas courts have recognized that the Legislature may delegate its power of eminent domain to nongovernmental entities. See Buffalo Bayou, Brazos & Colo. R.R. Co. v. Ferris, 26 Tex. 588, 588 (1863). The scope of the delegation of the government’s power of eminent domain rests entirely with the elected representatives of the people, the State Legislature. Imperial Irr. Co. v. Jayne, 104 Tex. 395, 417, 138 S.W. 575 (1911).

The crux of this lawsuit lies with the contention by The Crawford Family Farm Partnership (Crawford) that the pipeline planned by TransCanada Keystone Pipeline, L.P. 2 (TransCanada) fails to sufficiently fall within the specifications made by the Legislature to authorize TransCa-nada to exercise the power of eminent domain to compel the grant of a pipeline right-of-way over Crawford lands.

TransCanada filed its original statement and petition for condemnation in the County Court at Law for Lamar County, wherein it sought to exercise the power of eminent domain to acquire an easement for a *911 buried pipeline for the transmission of crude petroleum across rural real property owned by Crawford. The ensuing proceedings and Crawford’s spokesperson have attracted substantial attention. 3 The Keystone Pipeline system owned by TransCanada as projected contemplates the installation and operation of a network of over 2,100 miles of pipeline for the transmission of crude petroleum which originates in Canada, traversing markets within the midwest United States to Cush-ing, Oklahoma. The crude petroleum which is gathered at Cushing, Oklahoma, enters a portion of the Keystone Pipeline System known as the Gulf Coast Project, which crosses over into Texas to its ultimate destination in the Port Arthur, Texas, area. 4 It is this Gulf Coast Project portion of the pipeline that has been planned to traverse the Crawford property in Lamar County.

TransCanada, under authority statutorily granted to common carriers, seeks to invoke the power of eminent domain for the purpose of obtaining the necessary easements and rights-of-way to construct a buried pipeline thirty-six inches in diameter across the Crawford property. After TransCanada filed its papers seeking the right to cross the Crawford property, the trial court appointed three special commissioners to assess the condemnation damages due the landowner. After due notice of a hearing (which Crawford apparently opted to not attend), the commissioners awarded the easements to TransCanada and assessed condemnation damages of $10,395.00. 5 Crawford appealed the commissioner’s award in the County Court at Law, and, on February 21, 2012, a notice was sent by the clerk that the matter had been set for a bench trial April 30, 2012. 6

Thereafter, TransCanada filed a combined traditional and no-evidence motion for summary judgment. In its motion for summary judgment, TransCanada alleged that its summary judgment proof established, as a matter of law, its common carrier status with the right of eminent domain; the motion also alleged that there was no evidence to support Crawford’s counterclaims of gross negligence and fraud.

Crawford responded to TransCanada’s motion for summary judgment by raising a new argument — that because TransCanada is an interstate pipeline which contemplates the transmission of crude oil, it is not a common carrier under Section 111.002(1) and (6) of the Texas Natural Resources Code. See Tex. Nat. Res.Code Ann. § 111.002(1), (6) (West 2011). 7 While *912 the summary judgment motion was pending, Crawford filed its fourth motion for continuance, asking for an extension of time after substitution of counsel. 8 The trial court, while denying the continuance motion to the extent that Crawford sought additional time to conduct discovery, amend or supplement pleadings, or designate experts, granted it in all other respects, extending the deadlines for the filing of Daubert 9 challenges and dispositive motions.

In addition, the trial court’s order rescheduled the trial for September 4, 2012. A final pretrial hearing was rescheduled for August 10. On that date, Crawford filed a motion to dismiss for want of jurisdiction, this motion being based on the same argument Crawford had advanced in its response to TransCanada’s motion for summary judgment. Crawford’s motion to dismiss was heard at the pretrial hearing, together with TransCanada’s motions for summary judgment 10 and for writ of possession. The trial court entered an order granting TransCanada a writ of possession, finding TransCanada had “satisfied all of the requirements of § 21.021 of the Texas Property Code.” 11

The trial court entered an order on August 27 that denied Crawford’s motion to dismiss, which claimed the trial court lacked jurisdiction to hear TransCanada’s petition. On the same date, the trial court entered a summary judgment order granting TransCanada’s motion for combined traditional and no-evidence summary judgment. The trial court entered its amended final judgment September 4, awarding TransCanada a fifty-foot-wide, nonexclusive, permanent easement and a right-of-way to access the easement. 12 The judgment specifically included the following:

TransCanada has the legal capacity to bring this proceeding and to recover the easements sought; TransCanada is a common carrier; [Crawford] is the owner of the Property; that there is a public necessity for the Easements along, across, and over the Property sought in this proceeding by TransCanada and *913

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409 S.W.3d 908, 181 Oil & Gas Rep. 239, 2013 WL 4519769, 2013 Tex. App. LEXIS 10733, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-crawford-family-farm-partnership-v-transcanada-keystone-pipeline-l-texapp-2013.