Valero Eastex Pipeline Co. v. Jarvis

990 S.W.2d 852, 1999 WL 193927
CourtCourt of Appeals of Texas
DecidedMay 11, 1999
Docket12-98-00051-CV
StatusPublished
Cited by26 cases

This text of 990 S.W.2d 852 (Valero Eastex Pipeline Co. v. Jarvis) 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
Valero Eastex Pipeline Co. v. Jarvis, 990 S.W.2d 852, 1999 WL 193927 (Tex. Ct. App. 1999).

Opinion

WORTHEN, Justice.

This is an appeal from the dismissal of a land condemnation cause of action brought by Valero Eastex Pipeline Company (“Va-lero”) to condemn a limited permanent pipeline easement on land owned by Ben E. Jarvis, Julietta Jarvis, Sarah Jarvis Jones, Annell Melton Schoenvogel, and Eleanor Melton Cameron (“the landowners”). Valero presents two issues on appeal and because we hold that the trial court erred when it dismissed Valero’s suit for a limited permanent easement, we will reverse and remand this cause for further proceedings.

In 1990, Valero built a gas pipeline and transmission system known as the East Texas Pipeline System through parts of Anderson, Cherokee, Panola and Rusk Counties. As part of the process in constructing this pipeline, Valero filed a statement and petition in condemnation in Cherokee County condemning a permanent easement of 5.179 acres owned by the landowners. The landowners filed an objection to the commissioners’ award stating that it was inadequate to compensate them for their damages.

On September 14, 1992, the parties filed a Rule 11 written stipulation to matters not at issue, which in part contain the following provisions:

1. The permanent easement which the Plaintiff seeks to condemn is 5.179 acres.
2. The total length of the pipeline laid across the permanent easement by Plaintiff on the subject property is 273.45 rods.
3. The date of taking is October 11, 1990, the date on which Plaintiff paid into the Registry of this Court the Award of the Commissioners.
4. The temporary construction easement which runs parallel to the permanent easement condemned herein by the Plaintiff was used by it beginning on or about October 17, 1990.
5. The Plaintiff has the right at law to condemn the subject property and Defendant stipulates that all of the proceedings to date in this matter including the jurisdiction of this Court to hear the matter, are admitted and are not in issue.
Plaintiff is entitled to recover as set forth in its Petition and the only issue before the Court is one of monetary damages. Defendants have the burden of proof on the whole case. Therefore, under the provisions of Rules 266 and *854 269, Defendants move the Court to permit them to open and close both the presentation of evidence and the argument of the cause.

Following the filing of these stipulations, the parties went to trial only on the issue of damages. After the close of evidence, the trial court sua sponte removed the case from the jury and discharged the panel before it began deliberations on the damage issue. The trial court held that the easement was temporary in nature because Valero promised to move the pipeline if, in the future, coal mining operations began on the landowners’ property. The trial court rendered judgment dismissing the case on the grounds that the easement was temporary.

Valero appealed the trial court’s judgment to this court. Valero Eastex Pipeline Co. v. Jarvis, 926 S.W.2d 789 (Tex. App.—Tyler 1996, writ denied). We reversed and remanded the case back to the trial court after holding that Valero had condemned a limited permanent easement. Id. at 793. We further instructed Valero to replead a permissible easement under the strictures of White v. Natural Gas Pipeline Co. of America, 444 S.W.2d 298 (Tex.1969).

Meanwhile, on July 24,1995, Valero filed an assignment, bill of sale and conveyance in volume 1277, page 596 of the official record of Cherokee County, Texas, assigning all of its property, rights and interests in the East Texas Pipeline to ValeroTex, L.P., a Delaware limited partnership. This assignment to ValeroTex, L.P. included all claims and causes of action against any party, accrued or unaccrued, discovered or undiscovered, pertaining or relating to the construction, ownership, operation, maintenance or repair of the East Texas Pipeline facility. Valero then filed a fifth amended statement and petition in condemnation on July 17, 1997, which reads in part as follows:

(3) Plaintiff expressly excepts from the Easement and reserves unto the Defendants) all right, title and interest of the Defendant, his successors, assigns, and lessees in any coal and lignite in, on, and under the premises. One hundred eighty (180) days following good faith written notice from Defendant’s lessee or mining operator that active commercial coal or lignite mining operations are to be conducted in and upon the acreage embraced in the easement, or in such vicinity of the pipeline that said pipeline will preclude safe mining operations as set forth by governmental regulation and/or statute said easement shall terminate, cease, end and revert to Defendants so as to allow uninterrupted coal and lignite mining activities. It being the intent of Plaintiff to acquire an easement on condition subsequent estate.

On August 1, 1997, the landowners filed a motion to withdraw the provision in the September 14, 1992, Rule 11 stipulation that Valero had the right to condemn an easement across their property. Then, on September 25, 1997, the landowners filed a motion to amend stipulations as to matters not at issue, asking the court to strike the following parts of the stipulation:

1. The permanent easement which the Plaintiff seeks to condemn is 5.179 acres.
5. The Plaintiff has the right at law to condemn the subject property and Defendant stipulates that all of the proceeding to date in this matter including the jurisdiction of this Court to hear the matter, are admitted and are not in issue.
Plaintiff (Valero) is entitled to recover as set forth in its petition and the only issue before the court is one of monetary damages. Defendants have the burden of proof on the whole case. Therefore, under the provisions of Rules 266 and 269, Defendants move the Court to permit them to open and close both the presentation of evidence and the argument of the cause.

*855 At the same time, defendants filed a motion to dismiss the case which stated in part:

These Defendants show the Court that the directors of the Plaintiff have not, in good faith, exercised them right to condemn property for the reason that the directors of the Plaintiff have turned over to a third party the right to end Plaintiffs easement. This could be done any day and the easement would end six (6) months after the proper notice is given to the Plaintiff. If the easement can be ended and terminated by the action of a third party, then the directors of the Plaintiff have not, in good faith, determined that this land is necessary for their purposes and this proceeding should be dismissed with prejudice or in the alternative, without prejudice.

On October 10, 1997, the trial court held a hearing on these three motions. On January 15, 1998, the trial court entered an order deleting the following three paragraphs from the rule 11 stipulation:

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990 S.W.2d 852, 1999 WL 193927, Counsel Stack Legal Research, https://law.counselstack.com/opinion/valero-eastex-pipeline-co-v-jarvis-texapp-1999.