Township of Piscataway v. Duke Energy

488 F.3d 203, 2007 WL 1614614
Court of Appeals for the Third Circuit·Decided June 6, 2007·No. 05-4521·Published·Cited by 9 cases

Opinion

OPINION OF THE COURT

FUENTES, Circuit Judge.

This action was initiated by the Township of Piscataway and a group of homeowners to prevent Duke Energy Operating Company, LLC (“Duke”) and Texas Eastern Transmission, LP (“Texas Eastern”) from removing fifty shade trees planted along a public street in Piscataway, New Jersey. The companies claimed that it was necessary to remove the trees for the safe inspection and maintenance of three high-pressure, natural gas pipelines located beneath the street. After the Township settled with Duke and Texas Eastern, the companies and the homeowners cross-moved for summary judgment. The District Court ruled in favor of the homeowners and permanently enjoined Duke and Texas Eastern from removing the trees. Because we conclude that there are genuine issues of material fact as to (1) whether removal of the trees is reasonably necessary to the maintenance of the pipelines, and (2) whether Duke and Texas Eastern are barred by the doctrine of laches from asserting a right to remove the trees pursuant to an easement grant, we will vacate the District Court’s judgment and remand for further proceedings.

I.

In the early 1940s, Flora and H. Morgan Heath, predecessors-in-title to the homeowners in this lawsuit, took title to a large tract of undeveloped land located in the Township of Piscataway (the “Heath property”). 1 In May 1944, the Heaths granted Defense Plant Corporation (“Defense Plant”), and its successors and assigns, “the right to lay, operate, renew, alter, inspect and maintain” two pipelines for the transportation of natural gas. App. at 72. The 1944 grant required Defense Plant:

to bury such pipelines so that they will not interfere with the cultivation or drainage of the land, and also to pay any and all damages to stock, crops, fences, timber and land which may be suffered from the construction, operation, renewal, alteration, inspection or maintenance of such pipelines.

Id. Defense Plant subsequently constructed two twenty-inch diameter natural gas pipelines.

In the years that followed, Max and Mildred Richter and Ethel and Philip Gerber assumed title to the Heath property, and Texas Eastern Transmission Corporation (“TETCO”) succeeded to Defense Plant’s easement rights. In January 1960, the Richters and Gerbers granted TETCO the right to construct a third pipeline across the property. The 1960 grant im *207 posed the following restrictions on the parties:

The said Grantor is to fully use and enjoy the said premises, except for the purposes granted to [TETCO] and provided the said Grantor shall not construct nor permit to be constructed any house, structures or obstructions on or over, or that will interfere with the construction, maintenance or operation of, any pipe line or appurtenances constructed hereunder, and will not change the grade over such pipe line.
[TETCO] agrees to bury all pipes to a sufficient depth so as not to interfere with cultivation of soil, and agrees to pay such damages which may arise to growing crops, timber, or fences from the construction, maintenance and operation of said lines.

App. at 74. TETCO then constructed a third, thirty-six-inch diameter pipeline.

Over the next several years, the Heath property passed through the hands of a number of different owners. In February 1963, three real estate development companies that then owned the property entered into an agreement with TETCO in which TETCO agreed to reduce the size of the easement by releasing all portions of the land in the 1944 and 1960 grants not needed for the pipelines. Attached to the 1963 agreement is a drawing prepared by TETCO, which shows a proposed residential neighborhood (referred to as “University Hill”) through which TETCO’s sixty-foot wide easement runs at a slight diagonal. The 1963 agreement preserved all of the rights and restrictions set forth in the 1944 and 1960 grants. 2 Sometime thereafter, appellant Texas Eastern succeeded to TETCO’s easement rights, and later became an affiliate of appellant Duke. 3

As a result of residential development of the property, the land on which the easement is located became a one-block long public street named Fountain Avenue. The street is flanked by a large number of trees, many of which were planted in the early 1960s as part of the original residential development of the neighborhood and have grown to nearly seventy-five feet in height. The homeowner-appellees live in single-family homes built by the developers on lots adjacent to Fountain Avenue. Though all of the trees at issue in this appeal are located on Township property, the homeowners view the trees, from a practical and aesthetic perspective, as extensions of their front yards.

In April 2000, Duke announced that it would be removing approximately eighty trees from Fountain Avenue in order to better maintain the pipelines. Township residents vehemently opposed the proposed action. In October 2001, after several attempts to negotiate an agreement with Duke failed, the Township and the homeowners sued for injunctive relief in the Superior Court of New Jersey, Middle-sex County, Chancery Division. The verified complaint asserted state law causes of action for trespass, breach of easement, and nuisance. The Superior Court immediately entered a preliminary injunction prohibiting Duke from removing the trees on Fountain Avenue.

Duke thereafter removed the matter to federal court based on diversity jurisdiction. In its answer, Duke denied the allegations set forth in the verified complaint, and counterclaimed for injunctive relief *208 prohibiting the Township and the homeowners from interfering with their rights under the easement grant. In May 2002, the District Court denied Duke’s motion for a preliminary injunction and noted that the state court preliminary injunction prohibiting removal of the trees remained in effect.

In March 2003, the Township settled with Duke and consented to the immediate removal of fifty-five trees from Fountain Avenue, as well as to the future removal of any trees that exceed eight inches in diameter. The homeowners proceeded with the action and, following a hearing on April 26, 2005, the District Court denied the homeowners’ request for a jury trial and dismissed the trespass claim. The District Court, however, held that the homeowners had standing to pursue the remaining breach of easement and nuisance claims. After discovery, the parties filed cross-motions for summary judgment on their respective breach of easement claims.

On September 20, 2005, the District Court granted the homeowners’ motion for summary judgment and denied Duke’s cross-motion for summary judgment on the parties’ respective breach of easement claims. The Court concluded that Duke failed to proffer any evidence that removal of the trees was “reasonably necessary” to the maintenance of the pipelines. In addition, the District Court found that Duke was barred by the doctrine of laches from asserting a right to remove the trees pursuant to the terms of the easement grant.

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Township of Piscataway v. Duke Energy, 488 F.3d 203, 2007 WL 1614614 (3d Cir. 2007).

488 F.3d 203 (Township of Piscataway v. Duke Energy) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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Township Of Piscataway v. Duke Energy
488 F.3d 203 (Third Circuit, 2007)