59 F.4th 1158
11th Cir.2023Background
- Sabal Trail, a natural-gas company holding a FERC certificate under the Natural Gas Act (NGA), condemned easements across two adjacent Florida properties owned by Lee and Ryan Thomas under 15 U.S.C. § 717f(h).
- The district court awarded the Thomases severance damages at trial and ruled they would be entitled to attorney’s fees and costs; the Eleventh Circuit affirmed the damages award but initially lacked jurisdiction to review fees, sending the fee question back to the district court.
- On remand the district court applied Florida substantive law to measure compensation and awarded over $765,000 in fees and costs; Sabal Trail appealed, arguing federal law (the Fifth Amendment/"just compensation") controls and precludes fees.
- The Eleventh Circuit considered whether its prior en banc precedent in Georgia Power governs whether federal common law or state law supplies the substantive measure of "compensation" for private-licensee condemnations under the NGA.
- The court held Georgia Power controls, concluded state substantive law supplies the measure of compensation under § 717f(h), and affirmed the district court’s award because Florida law includes attorney’s fees as part of compensation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether state or federal law supplies the measure of "compensation" under NGA § 717f(h), including recoverability of attorney's fees | Federal law (Fifth Amendment "just compensation") governs when the federal eminent-domain power is invoked; that standard does not include attorneys' fees | State substantive law governs and Florida law treats attorneys' fees and costs as part of condemnation compensation | Georgia Power controls; state law supplies the federal rule of decision for compensation under § 717f(h); Florida law permitting fees is applicable and award affirmed |
| Whether Georgia Power remains binding precedent or is displaced by later authority (e.g., PennEast) | Georgia Power is distinguishable or superseded by Supreme Court authority emphasizing the federal nature of delegated eminent domain | Georgia Power is binding under the Eleventh Circuit prior-precedent rule and is factually/legally on point | Prior-precedent rule binds; Georgia Power applies here and requires applying state substantive law |
| Whether Federal Rule of Civil Procedure 71.1 precludes an award of attorney's fees in federal condemnation proceedings | Rule 71.1 (procedure for eminent-domain cases) bars awarding fees under federal practice | Rule 71.1 is procedural and does not displace substantive state compensation rules that include fees | Rule 71.1 governs procedure only and does not preclude applying state substantive law that includes attorneys' fees |
Key Cases Cited
- Georgia Power Company v. Sanders, 617 F.2d 1112 (5th Cir. 1980) (en banc) (holding state substantive law supplies measure of compensation for private-licensee condemnations under Federal Power Act)
- Bonner v. City of Prichard, 661 F.2d 1206 (11th Cir. 1981) (en banc) (adopting prior Fifth Circuit decisions as binding precedent in the Eleventh Circuit)
- PennEast Pipeline Co. v. New Jersey, 141 S. Ct. 2244 (2021) (confirming NGA allows private licensees to exercise federal eminent-domain power against state-owned property)
- United States v. Kimbell Foods, 440 U.S. 715 (1979) (federal statutes implementing national programs can supply federal law for related disputes)
- United States v. Bodcaw Co., 440 U.S. 202 (1979) (attorneys' fees and expenses are not encompassed within federal "just compensation")
- Tennessee Gas Pipeline Co. v. Permanent Easement for 7.053 Acres, 931 F.3d 237 (3d Cir. 2019) (applying state law as measure of compensation under NGA)
- Columbia Gas Transmission Corp. v. Exclusive Nat. Gas Storage Easement 6, 962 F.2d 1192 (6th Cir. 1992) (same conclusion that state law supplies compensation measure for NGA condemnations)