FPL Farming Ltd. v. Environmental Processing Systems, L.C.
383 S.W.3d 274
| Tex. App. | 2012Background
- EPS operates a non-hazardous waste disposal facility in Liberty County, Texas, under permit WDE-316 issued by the TNRCC (now TCEQ).
- FPL Farming Ltd. owns tracts adjacent to EPS’s injection well and alleged a subsurface waste plume migrated beneath FPL’s property, causing injury to briny water in place.
- A four-day trial ended with the jury finding no trespass, negligence, or unjust enrichment, and the trial court entered judgment for EPS.
- On initial appeal, this court affirmed, the Texas Supreme Court remanded to address trespass; the Texas Supreme Court held a permit holder is not shielded from private tort liability and directed consideration of trespass issues.
- On remand, EPS argued lack of standing and that trespass could occur beneath the surface; the court analyzed subsurface ownership and FPL’s rights to the briny water.
- The court concluded FPL has a possessory interest in subsurface water and the right to sue for trespass, and determined the trial court improperly allocated the burden of proving consent on FPL.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Who bears the burden to prove consent? | FPL contends EPS must prove consent as an affirmative defense. | EPS argues consent is an element for FPL to prove, or consent can be implied from conduct. | Burden on EPS; trial court error; remand for new trial. |
| Did FPL have standing to sue for subsurface trespass? | FPL has surface and subsurface rights to water below its tracts; deeds show possessory interest. | Standing challenges untethered to trespass theory? (summary) EPS contends lack of standing. | FPL has standing to sue for trespass. |
| Is there a viable trespass claim for deep subsurface intrusion? | Texas law recognizes subsurface trespass to protect water; evidence supports trespass. | Question whether subsurface trespass applies and whether evidence supports it. | Court recognizes FPL's trespass claim, but remainder remanded due to charge error. |
| Was the jury instruction on consent improper and harmful? | Instruction misallocated burden to prove lack of consent to FPL. | Instruction correctly stated elements; burden allocation acceptable in context. | Instruction error harmful; reverse and remand. |
| Were evidentiary rulings affecting consent appropriate? | Excluded documents (escrow and settlement letter) relevant to consent evidence. | Court could exclude as prejudicial or irrelevant. | Court abused discretion by excluding relevant consent evidence; remand. |
Key Cases Cited
- FPL Farming Ltd. v. Envtl. Processing Sys., L.C., 351 S.W.3d 306 (Tex. 2011) (permit holder may be liable for private torts; remand guidance on trespass)
- Gregg v. Delhi-Taylor Oil Corp., 162 Tex. 26, 344 S.W.2d 411 (Tex. 1961) (subsuface injury injunctions; jurisdiction over subsurface invasions)
- Hastings Oil Co. v. Tex. Co., 149 Tex. 416, 234 S.W.2d 389 (Tex. 1950) (injunction against deep subsurface production)
- Edwards Aquifer Auth. v. Day, 369 S.W.3d 814 (Tex. 2012) (groundwater ownership and remedies in place)
- Robinson v. Robbins Petroleum Corp., Inc., 501 S.W.2d 865 (Tex. 1973) (water beneath surface part of surface estate)
- Stukes v. Bachmeyer, 249 S.W.3d 461 (Tex. App.-Eastland 2007) (burden-of-proof in trespass cases discussion)
- Gen. Mills Rest., Inc. v. Tex. Wings, Inc., 12 S.W.3d 827 (Tex. App.-Dallas 2000) (trespass burden allocation and consent principles)
- Carr v. Mobile Video Tapes, Inc., 893 S.W.2d 613 (Tex. App.-Corpus Christi 1994) (consent concepts in trespass)
