918 F.3d 353
4th Cir.2019Background
- Mountain Valley Pipeline, LLC (MVP) obtained a FERC certificate to build a natural-gas pipeline and filed condemnation actions under the Natural Gas Act (NGA) to acquire surface easements on parcels owned by Western Pocahontas Properties, LP (WPPLP).
- MVP sought partial summary judgment establishing its right to condemn the identified temporary and permanent surface easements and a preliminary injunction for immediate access to begin construction.
- WPPLP proffered evidence at the preliminary-injunction hearing regarding likely damage to coal (including coal owned by an affiliate, WPPLLC) that was not part of the surface easements described in MVP’s complaint; the district court excluded that evidence as irrelevant.
- WPPLP moved to dismiss for failure to join WPPLLC as an indispensable party; the district court struck the dismissal motion (Rule 71.1 limits pleadings in condemnation actions) and declined to join WPPLLC.
- The district court granted MVP partial summary judgment (MVP entitled to condemn the easements) and issued a preliminary injunction; WPPLP appealed. The Fourth Circuit affirmed in full.
Issues
| Issue | Plaintiff's Argument (WPPLP) | Defendant's Argument (MVP) | Held |
|---|---|---|---|
| Exclusion of proffered evidence about coal damage | Evidence of coal damage (including WPPLLC’s coal) is relevant to consequences of the taking and bond/compensation | MVP defined the scope of the taking (surface easements); evidence about property not described in the complaint is irrelevant in the condemnation proceeding | Evidence properly excluded; district court did not abuse discretion |
| Failure to join WPPLLC as indispensable party | WPPLLC has an interest in alleged coal impacts and should have been joined | WPPLP waived the argument by failing to raise it in its answer; Rule 71.1 bars additional pleadings in condemnation actions | WPPLP waived the claim; district court properly declined to join WPPLLC |
| Partial summary judgment on right to condemn | MVP failed to negotiate in good faith and never offered compensation for coal; factual disputes exist | MVP holds a valid FERC certificate, property is necessary, and it could not acquire the easements by agreement; it need not negotiate for property it is not condemning | Summary judgment appropriate; MVP satisfied NGA prerequisites and no genuine dispute as to right to condemn |
| Preliminary injunction for immediate possession | Immediate possession causes harms to WPPLP and should be denied | MVP would suffer irreparable, unrecoverable economic harm and construction delay; public interest favors timely completion of a FERC-approved pipeline | Injunction not an abuse of discretion: Winter factors satisfied (likelihood of success, irreparable harm, equities, public interest) |
Key Cases Cited
- East Tenn. Natural Gas Co. v. Sage, 361 F.3d 808 (4th Cir. 2004) (district courts may issue injunctions in NGA condemnation cases if the condemnor shows substantive right and meets preliminary-injunction standards)
- United States v. 21.54 Acres of Land, More or Less, in Marshall Cnty., 491 F.2d 301 (4th Cir. 1973) (condemnor has discretion to define extent of taking; courts only adjudicate disputes about what the condemnor has described)
- United States v. 3,317.39 Acres of Land, More or Less, in Jefferson Cnty., 443 F.2d 104 (8th Cir. 1971) (damages in condemnation limited to land described in declaration of taking)
- Winter v. Natural Resources Defense Council, Inc., 555 U.S. 7 (2008) (preliminary injunction requires likelihood of success, irreparable harm, favorable balance of equities, and that injunction be in the public interest)