History
  • No items yet
midpage
Hubenak v. San Jacinto Gas Transmission Co.
141 S.W.3d 172
Tex.
2004
Check Treatment

*1 part appeals’ judgment, of the court of HUBENAK, Thelma Blahuta deny-

basis for the trial court’s decision for Petitioner, — pursued legiti- fees ing each side — changed. mate interests has not Ac- v.

cordingly, we will not disturb the trial SAN JACINTO GAS TRANSMISSION discretionary court’s decision that re- COMPANY, Respondent. gard. appeals’ We affirm the court of and Thelma Blahuta Hubenak Emil judgment attorney’s fees. Blahuta, Petitioners, v.

IX San Jacinto Gas Transmission Company, Respondent. Conclusion Wenzel, McAndrew, Rosie Wilma (1) appeals’ judg- We affirm the court of Betty McCleney, and Tilford ment as to the increased assessments in Sulak, Petitioners, Two, Sections One and the assessment of v. (2) fees, foreclosure; late reverse the judgment court of Jacinto appeals’ and render San Gas Transmission Company, Respondent. judgment as to accumulation of fee in- (3) Five; creases under Sections Four and Family Trust, Darryl Wayne Kutach vacate the trial court’s and the court of Kutach, Trustee, Petitioner, appeals’ judgments as to Sections Three v. jurisdic- Six dismiss want San Jacinto Gas Transmission sections; tion Brooks’s claim as to those Company, Respondent. (4) affirm the of appeals’ judg- court regarding attorney’s ment fees. Tex. Petitioner, Corporation, Cusack Ranch (e). 60.2(a), (c), R.App. P. Company, Pipeline

MidTexas Respondent. Company, Pipeline MidTexas Petitioner, Dernehl, and The Wilbert O. Jr. First Bellville, National Bank of Respondents. Pipeline Company, MidTexas Petitioner, *2 v. Roy Wright,

Walter Jr. and Robbie Wright, Respondents.

V. Pipeline Company,

MidTexas

Petitioner, Roy Wright, III, Respondent.

Walter Cusack,

Michael F. Trustee of the Special

Michael F. Cusack Trust One, Petitioner,

No. Pipeline Company,

MidTexas

Respondent. 02-0217, 02-0320,

Nos. 02-0213 to

02-0321, 02-0326, 02-0359.

Supreme Court of Texas.

Argued Feb. July

Decided Adler, Austin, I. for Amicus

Stephen Corporation. Olin Curiae McElya, Angleton, Richard L. William Noel, Hubenak, for Thelma Blahuta D. *3 Roy Ranch Corporation, Cusack Walter Wright, III. Sheffield, Houston, E. for

Thomas San Company. Jacinto Gas Transmission Emil McElya, Angleton, Richard L. for Blahuta, McAndrew, Betty Wilma McCle- Sulak, Kutach, Darryl Wayne ney, Tilford Trustee, The First National Bank of Bell- ville, Wright, Robbie V. Michael Cusack Special Trust No. One. Noel, Wenzel, D. for Ku-

William Rosie Dernehl, Trust, Family tach O. Wilbert Jr., Jr., F. Roy Wright, Walter Michael Cusack, Trustee. Jr., Dallas, Thomas Raney

Kenneth C. Sheffield, Houston, Pipe- MidTexas E. Company. line Houston, Carroll, for Amicus Stephen K. Pipelines BP Inc. Curiae opinion Justice OWEN delivered Court, in which Chief Justice PHILLIPS, HECHT, Justice Justice SMITH, WAINWRIGHT Justice joined, and which Justice BRISTER I, joined as to Parts Justice JEFFERSON III. II and condemnation In these nine consolidated (1) pro must determine whether we section Property in Texas Code visions authority permitting condemning 21.012 if it is begin condemnation “unable to with the owner damages” amount of property on the petition to con requiring a condemnation that it has been unable tain a statement (2) jurisdictional;1 and the con agree are in these cases satisfied demning entities Prop.Code 21.012(a), (b). 1. Tex. requirements. respective

section 21.012’s hold main Their power.11 We boards agree” requirement the “unable to construct directors authorized them to nat- jurisdictional condemning and that the ural gas pipelines. Some of landown- entities have satisfied their show pipeline burden to ers whose was across that they and challenged validity the landowners were unable be built12 on the properties proceedings. condemnation affected described in underlying properties are in several Texas located (1) Accordingly, Bend, petitions. counties, Colorado, we affirm the including Fort in Hubenak appeals’ judgments courts of and Gonzales counties. Because the issues v. San Jacinto Gas Transmission Co. same, in each of the cases are the we will (.Hubenak ),2 1 Hubenak v. San Jacinto collectively refer to the landowners and to *4 Gas Transmission Co. ),3 {Hubenak utility gas companies as “condem- Wenzel v. San Jacinto Gas Transmission nors.” Co,,4 Family Kutach Trust v. San Jacinto instituting pro- Before condemnation Co.,5 Gas Transmission and Cusack ceedings, the hired certified condemnors Co.; 6 Ranch Corp. Pipeline v. MidTexas real appraisers estate to appraise pro- (2) affirm of appeals’ the court judgment posed easements across the landowners’ Pipeline MidTexas Co. v. Cusack7 and re case, properties. In each the condemnors mand that case to the trial fur court for made at least two offers to landowners proceedings ther opin consistent with this to purchase property. their Each offer (3) ion; and appeals’ reverse court of appraised exceeded value the ease- Pipeline MidTexas v.Co.

judgments in ments, including a final offer that con- Demehl,8 Pipeline MidTexas Co. following you tained the “If statement: ),9 Wright (Wright 1 Pipe and MidTexas reject offer, elect to this [the condemnor] 2)10 line Co. v. Wright (Wright re may institute suit in condemnation [a mand those cases to their trial respective court], designated rights acquire courts for further consistent Right Way Agree- described opinion. with this right-of-way ment.” The agreements at- tached to all of the final offers included the I followingterms:

San Jacinto Gas Transmission Co. (1) Pipeline MidTexas Co. are gas unrelated the condemnor would receive the utility companies possessing oil, eminent do- right transport “gas, petroleum (Cause (Cause 2. 65 S.W.3d 791 No. 02-0213 in this 9. 141 S.W.3d WL Court). Court). No. 02-0321 this (Cause Court). No. 02-0214 in this Id. WL (Cause Court). No. 02-0326 in this (Cause Court). Id. No. 02-0215 in this (Cause Court). 181.004, No. Id. 02-0216 this .008. 11. Tex. Util.Code§§ (Cause 6. 71 S.W.3d 395 No. this 02-0217 in Hubenak, Darryl Wayne 12. Thelma Blahuta Court). Kutach, Blahuta, Wenzel, Emil Rosie Wilma McAndrew, Sulak, Betty McCleney, Tilford (Cause 7. 141 S.W.3d 2002 WL 368639 Trust, Cusack, Family the Kutach F. Michael Court). No. 02-0359 in this Jr., Roy Corp., Wright, Cusack Ranch Walter (Cause III, Wright, Roy Wright, 8. 71 S.W.3d 852 No. this V. 02-0320 in Robbie Walter Court). Demehl, O. and Wilbert Jr. (1) property to products, liquids, gases other or describe the be con- demned; transported substances which can be pipeline”; through (2) purpose state the for which the entity property; intends to use the (2) the condemnor would receive the assign any per- (3) easement of the state name owner entity; known; son or if the owner is (3) obligated the landowners would be (4) entity prop-

to warrant and defend title to the ease- state that the and the erty agree owner are unable to ment. damages.13 repeatedly The landowners informed the petitions filed in the during negotiations they condemnors foregoing all trial courts contained simply did not want a located on pipeline statutory allegations, including a statement many their and in properties, that the condemnors and the landowners landowners stated would to sell were unable to on the prices the easements far above the properties peti- condemned. The be values, appraised Ultimately, if at all. however, tions, expressly did not seek rejected each case either three condemn or otherwise address the *5 final The ignored the condemnors’ offers. in right-of-way matters contained the then condemnation in condemnors agreements transportation the regarding appropriate the trial courts. substances, the of oil and other Property Section 21.012 of the Texas easement, the landowners’ assign the and provides: Code obligations to warrant title. ’ (a) States, state, If the United this case, appointed In each the trial court state, a political subdivision of this special damages, commissioners to assess eminent domain au- corporation with special and the commissioners awarded im- thority, irrigation, water had landowners less than the condemnors provement, power control water easements, excep offered for the district created law wants to ac- and Cusack of the awards Cusack quire property public real for use but filed timely Ranch.14 The landowners is unable to with the owner objections to the commissioners’ their on amount of dam- Demehl, awards, Wright and and ages, condemning entity may be- Wright the landowners also filed coun proceeding by a condemnation fil- gin and possession terclaims for of their land in the court. ing petition proper In damages wrongful taking. all (b) cases, responded by filing petition The must: the condemnors Prop.Code 21.012. 13. Tex. highest

14. The offers and commissioners awards were: condemnors 2,918.00 6,089.80 (02-0213): offer-$ award-$ Hubenak 1 offer-$24,602.65 8,843.00 (02-0214): award-$ Hubenak 2 offer-$14,620.38 4,606.00 (02-0215): award-$ Wenzel 6,360.00 2,670.00 (02-0216): award-$ offer-$ Kutach offer-$25,000.00 award-$25,836.24 (02-0217): Cusack Ranch offer-$13,331.00 6,000.00 (02-0320): award-$ Dernehl offer-$17,000.00 10,000.00 (02-0321): Wright award-$ offer-$18,000.00 award-$12,500.00 (02-0326): Wright 2 award-$15,328.56 offer-$13,941.00 (02-0359): Cusack for partial summary judgment, explicitly sought motions the condemnors had not as serting prerequi had satisfied all condemn main- landowners to bringing sites the condemnation actions could not legally tained the condemnors damages and that the amount of was the objected condemn. The also pending issue court. Dunwoody’s hearsay, affidavits as con- motions, of their support the condemnors clusory, incomplete. The landowners’ attached affidavits from David M. Dun- summary pri- judgment evidence consisted woody inability agree. the issue of marily of the condemnors’ admissions that Dunwoody oversaw the be sign proposed the landowners had tween condemnors and landowners in right-of-way agreements accept order to each the nine His cases. affidavits re the offers. obtaining appraisals, count independent each The trial court of the cases landowners, the offers made to the and the initially granted the condemnors’ motions failure to parties’ agree. In most of the partial judgment and over- summary cases, Dunwoody’s affidavit also authenti objections ruled to Dunwoody’s affida- correspondence passed cates between vits. Five of the cases—Hubenak landowners, the condemnors and the in Kutach, Wenzel, Hubenak and Cusack cluding offers, final condemnors’ trial Ranch —then went to on the amount right-of-way agents’ notes about land damages. juries in Hubenak 2 and contacts. owner Kutach awarded to the landown- In all the the landowners filed ers that were than what less the condem- partial summary cross-motions for judg- them,15 juries nors had offered pleas jurisdiction, ment and arguing 1, Wenzel, Hubenak and Cusack Ranch jurisdiction the trial courts lacked awarded more what the than condemnors over be- *6 had offered for the easements.16 The cause the comply condemnors failed to in landowners the other four howev- with section agree” 21.012’s “unable to re- er, jurisdic- supplemental pleas filed to the quirement. argued The landowners that tion based on Hubenak San Jacinto Gas the condemnors could not the “un- Co.,17 in Transmission which the First to agree” able requirement they unless Appeals Court of in Houston the reversed they established that had engaged in in judgments trial courts’ Hubenak faith” “good negotiations with the land- 2, Wenzel, Hubenak and Kutach and held owners before initiating pro- condemnation jurisdiction that the trial courts lacked be- ceedings. The landowners asserted that did negotiate cause the condemnor the condemnors’ offers were not “bona same rights the to condemn.18 fide” or made good in faith because the Cusack, result, As a trial courts in were the offers to the landowners’ exe- Demehl, Wright Wright granted and cuting right-of-way agreements at- letters, jurisdictional pleas tached to the final in- the landowners’ and which cluded three additional matters that ju- dismissed the for want of jury (Tex.App.-Houston 15. The awards were: 17. 2000 WL 1056416 [1st $4,331.00 2000), opinion rehg, withdrawn (02-0213): on Dist.] Hubenak 2 $1,247.00 (02-0216): Kutach (Tex.App.-Houston [1st Dist.] 2001, pet. granted). jury 16. The awards were: 9,395.00 (02-0213): $ $15,879.00 Hubenak (02-0215): Wenzel Id. at *5. $30,000.00 Ranch(02-0217): Cusack requirement good negotia- faith appeals, The court of to the risdiction. Houston tions, however, original in thereafter its and Hubenak Hubenak Wen- withdrew Kutach, zel, in Hubenak v. on and the court reasoned that opinion San Jacinto rehearing and held that the “unable to further with the landowners objected to requirement had satisfied.19 were futile because agree” been of a on their pipeline proper- construction in Accordingly, pro- five cases that ties under circumstances.25 trial, the ulti- appeals ceeded to courts of differed with mately summary judgments appeal affirmed the The results re- four Although gard to the cases dismissed want favor condemnors.20 jurisdiction. appeals The court of applied the courts different standards review,21 courts that reversed trial court’s agreed section Cusack dismissal jurisdictional jurisdiction, holding that requirements 21.012’s are for want of virtually legally that there is evidence condemnor’s offer identical to and sufficient was findings that support implied the trial the offer in Ranch and courts’ Cusack legitimate showed that the condemnors satisfied “unable offer was negotiating agree despite hav- parties were unable to negotia- participated fide offers faith good making ing good faith bona Demehl, purchase instituting the easements before tions.26 court of 2, however, underlying proceed- Wright affirmed Wright dismissals, legal sufficiency includ- ings.22 applying These courts also held that holding in the three matters in the standard of each ing additional review not conclu- negate good final offers did not faith be- case condemnor did sively were “un- cause there was evidence that inclusion establish that the said that in impedi- agree.”27 of the additional matters was an able to The court parties’ ability sup- to the on each case there some evidence ment was Rather, noted, the trial because the damages.23 port the courts court’s dismissal simply the landowners pipeline did not want condemnor’s offers to properties.24 property rights located on their Both courts included condem- futility exception ultimately nor did not seek to condemn.28 further stated Hubenak, futile, also Jacinto 65 S.W.3d at 794. but because San made them”). offers to bona fide *7 Ranch, 396; 71 S.W.3d at Hube- 20. Cusack nak, at Ranch, 400; 65 S.W.3d 794. at 23. Cusack 71 S.W.3d Hube- nak, at 65 S.W.3d 800-01. Ranch, (applying 71 at 398 21. Cusack S.W.3d de standard to the novo of review trial Ranch, 399; at 24. Cusack Hube- application undisput- courts the law to the nak, 65 S.W.3d at 799. Hubenak, facts); (apply- S.W.3d at 798 ed 65 review). ing a evidence standard Hubenak, 65 at 25. S.W.3d 799. Ranch, (“We 22. Cusack 71 S.W.3d at 400 find 215, at 368639. 26. 141 S.W.3d 2002 WL evidence, whole, as a that Mid- establishes good engaged in 1, Texas faith suf- Demehl, 858; Wright 71 at 141 27. S.W.3d requirement that it was 208, *2; ficient Wright at at WL 264833 S.W.3d 2002 on the amount of unable Cusack 2, 211, S.W.3d. at 2002 WL 32626070 at 141 instituting prior the condemna- *2. Hubenak, proceeding.”); 65 S.W.3d at 858; 1, Demehl, Wright (holding 71 at 141 that the was sufficient 28. S.W.3d 801 evidence 208, *2; Wright at at WL 264833 satisfied section S.W.3d 2002 to show condemnor 2, 211, requirements ne- S.W.3d. 2002 WL 32626070 at “not because 141 21.012’s were in gotiations with Landowners fact *2. None of the courts of appeals Any may object considered der.32 party special to the whether the legally condemnors could findings, commissioners’ and if there are to condemn objections, the three additional court “the shall cite the adverse matters, and none considered the party try landown- the case the same manner objections ers’ to Dunwoody’s affidavits. as other civil causes.”33 granted petitions We for review years, Over the the courts have inter- all nine cases consolidated them be- preted Property provisions these Code cause involve substantially similar statutory predecessors. their This Court facts, arguments, briefing. filing has described the initial peti- hearing

tion and the commissioners’ as an II proceeding” “administrative that “converts Before we consider whether pending objec- the “unable into a normal cause” when contained section tions to the commissioners’ award are 21.012 of Property the Texas impli- objec- Code29 filed.34 have also filing We said that “ jurisdiction, cates matter or the tions the award of special ‘vacate[s] ”35 other issues in these consolidated it Commissioners.’ A number of courts is helpful to understand procedural objections of appeals have held that steps in a proceeding. the condemnor did not make effort to filing petition required section during cannot be raised the adminis- 21.012 in either a district court county phase trative special before the commis- sioners, court at step. law30 is the first aWhen but must be raised the trial filed, petition is judge of the court court after the commissioners’ award has appoints Court, “three disinterested freeholders issued.36 This as well as courts of who reside in the county special as com- appeals, have further held that if a land- missioners to assess the damages.”31 participates owner hearing These commissioners, commissioners hearing convene a the special the landowner and determine the value of waives the complain that the con- condemned and damage to the remain- demnor did not make an agree.37 effort to Co., pet.); City Prop.Code § 29. Tex 21.012. Houston v. Plantation Land (Tex.Civ.App.-Hous 694-95 Id. n.r.e.); § 30. City 21.001. ton [14th Dist.] writ ref'd Crawford, (Tex. Dallas S.W. dism'd); Id. Civ.App.-Amarillo § Rabb 21.014. writ La Feria Mut. Canal Tex.Civ.App. (1910, ref'd). 21.015, Id. §§ 130 S.W. writ .016. See, Mineola, e.g., City Id. Jones v. 21.018. (Tex.Civ.App.-Texarkana *8 1947, ref’d); Brown v. Lower Colo. River Pipeline Amason v. Natural Gas 34. writ 682 Auth., 240, 369, (Tex.1984). (Tex.Civ.App.- S.W.2d 242 485 S.W.2d 371 Hall, 1972, writ); City Austin v. Austin no of 330, County Id. at 243 (Tex.Civ.App.-Austin 446 S.W.2d 336 Denton B ramm (quoting er, 1969), grounds, 198, rev’don other (Tex.1962)). 450 S.W.2d 836 361 S.W.2d 200 (Tex.1970); Pipeline Lohmann v. Natural Gas Am., 879, See, (Tex.Civ. Co. 882 e.g., Gathering Seiler v. Intrastate of 1968, n.r.e.); Aronoff 133, App.-Beaumont Corp., writ 730 S.W.2d ref’d (Tex.App.-San 137-38 Dallas, 302, 1987, City writ), overruled on other Antonio no v. Schertz, 1958, grounds by City Schumann v. (Tex.Civ.App.-Texarkana writ ref'd 2002, n.r.e.). (Tex.App.-San S.W.3d 361 Antonio argue—and the courts ap- None of the landowners in the cases agreed—that peals plead failure to both today in the’ hear- participated before us compliance prove with section 21.012’s special ings held commissioners. requirements deprives the trial court of They respective first raised their conten- jurisdiction pro- over the condemnation negoti- good tions that there were no faith The ceedings. respond condemnors that court, ations in the trial after the commis- agree” requirement the “unable to not is were sioners’ awards issued. jurisdictional. For the reasons considered below, statutory we conclude that this re- Ill mandatory, failure quirement but to sat- 21.012(a) con states Section isfy courts of deprive does entity “may demning, begin a condemna jurisdiction. matter agree if it proceeding” is “unable to is no in language There section 21.012 property. with the owner on the agree” indicating “unable to re- 21.012(b) damages.”38 amount of Section jurisdictional. quirement is Nor did sec- petition commencing that a also states statutory predecessors tion 21.012’s indi- proceeding “must”: that the “unable language cate used (1) property describe the to be con- jurisdictional.40 agree” requirement was demned; Nevertheless, 1943, in Brinton Houston (2) purpose state'the for which the enti- Lighting “provi- & held Power Co. ty intends to property; use the private prop- sions for the condemnation erty public special and sum- use are (3) state the name of the owner of the character, mary strictly in must be hence is.known; if the owner complied condemning with by the authori- (4) the entity proper- state that and the ty, ignoring rendering pro- thereof ty agree owner are unable to on the That ceedings wholly decision void.”41 damages.39 concluded “statute seems to be note at the that the condem- We outset explicit in its that there must nation in all petitions these cases include pro- have been advance of condemnation affirmative statements that there has been ceedings at fide effort on the least a bona compliance requirements, with in- these its part of condemnor with requirement. “unable cluding owner, adversary, advance land contend, however, that The landowners be- land or dam- ‘upon the value of the ”42 yond merely parties “statfing]” that later, ages.’ years Five the court of agree, unable to were condemnors City Derby Houston said required plead prove were that for “to dicta the condemnor vest having were unable to after county court jurisdiction condemn land, first engaged “good negotiations. appellees’ allege, faith” it had to 10, 10-11; 26, 21.012(a). Prop.Code § Act of Tex. Gen. Laws Mar. Tex. 56, 54, 54; 1885, ch. Tex. Gen. Laws 21.012(b). § Id. 4182-92, (1879); p. arts. Tex.Rev.Civ. Stat. ed., Digest, Paschals Ann. 5th art. 28, 1961, R.S., Aug. Leg., 40. See Act of 57th 822). (Laws p. of Tex. Vol. 203, 203; 105, § ch. 1961 Tex. Gen. Laws 7, 1934, C.S., Leg., of Mar. 2d ch. Act 43d (Tex.Civ.App.-Galves- 41.175 89, 89; Apr. 1934 Tex. Gen. Laws Act. of w.o.m.). writ ton ref d 22, 1905, 2-13, Leg., §§ *9 29th ch. 1905 101, 101-02; 28, Apr. Act of Tex. Gen. Laws 1903, C.S., V, 2-3, Leg., §§ 42.Id. 710. 28th 1st ch. 1903

181 during prove, then that it that a can waive indicated landowner complain that was no effort right failed to there agree appellees had to with the on agree. to have said if the owner We that the value of land their to be taken.”43 commissioners’ accepted the award has application This Court writ refused money regis- from the and withdrawn error in Derby, giving opinion of that court, jurisdiction try of the the court has force and as opinion same effect an of this adjudicate either the landowner’s or the A of of ap- Court. number other courts State’s contest of commissioners’ similarly peals have held or said in dicta award,46 though proof even was no of there pro- agree” that the “unable [or failure] agree effort with the owner.47 An- jurisdictional vision is or that failure to decision, other which we refused the comply renders proceed- the condemnation error, application of said that if writ ing void.44 “the of the land to be con- owner Court, Other of decisions this how appearance makes his demned ever, are inconsistent with the proposition special resists the con- commissioners and compliance “unable to merits, proceedings upon demnation he provision necessary subject to bestow of thereby waives whatever lack efforts to jurisdiction. juris Subject matter matter might reach a settlement there have diction cannot be waived.45 But been.”48 Several of appeals we other courts 690, 1974, (Tex.Civ.App.-Galves- (Tex.Civ.App.-Beaumont 43. 215 S.W.2d 692 writ ref’d 1948, d) added). (emphasis n.r.e.) ton (stating writ ref authority "no courts have a decree to enter of condemnation" unless the 44. Pipeline ExxonMobil Co. v. Inter Harrison attempt” condemnor has made a "bona fide ests, Ltd., 188, (Tex.App.-Hous 93 S.W.3d 192 landowner); City with the Isaac v. 2002, filed); pet. McKinney ton [14th Dist.] Houston, 543, (Tex.Civ.App.- 60 S.W.2d 545 Ltd., Grace, Indep. Sch. Dist. v. Carlisle 83 1933, dism’d) (holding Galveston writ 205, 2002, (Tex.App.-Dallas S.W.3d 208 no authority” was "without court render a Co., pet.); Pipeline Mercier v. MidTexas 28 judgment proceeding in a condemnation 712, S.W.3d (Tex.App.-Corpus 720 Christi proof when there was no were 2000, denied); pet. Marburger v. Seminole damages). unable to Co., 82, Pipeline (Tex.App. 957 S.W.2d 89 1997, denied); pet. Houston [14th Dist.] Pre Kazi, 71, Petroleum Co. v. 12 S.W.3d Dubai Structures, Houston, cast City Inc. v. 942 (Tex.2000); 76 Fed. Underwriters Exch. v. 632, (Tex.App.-Houston S.W.2d 636 [14th 539, 598, Pugh, Tex. 174 S.W.2d 141 600 1996, writ); Schmidt, Dist.] no State v. 894 (1943). 543, 1995, (Tex.App.-Austin S.W.2d 1 545 n. writ); Hogan, no Power Tex.-N.M. Co. v. 824 Co., Pipeline v. Natural 682 Amason Gas 252, 1992, (Tex.App.-Waco S.W.2d 254 writ 240, Jackson, (Tex.1984); 242 State v. S.W.2d denied); County, v. Schlottman Wharton 259 924, (Tex.1965); 388 S.W.2d 925 see also 325, (Tex.Civ.App.-Fort S.W.2d 330 Worth Corp. Coastal Indus. Water Auth. v. Celanese 1953, dism’d); County, writ Gill v. Falls 243 Am., 597, (Tex.1979) (land- S.W.2d 592 599 277, 1951, (Tex.Civ.App.-Waco S.W.2d 280 no special owner who withdrew the commission- writ); 404, Defee, Doughty 152 410 v. S.W.2d registry ers' from the court’s waived its award 1941, (Tex.Civ.App.-Amarillo writ ref'd challenge to the to take condemnor’s w.o.m.); County, Cook v. Ochiltree 64 S.W.2d litigate property but could continue 1018, 1933, (Tex.Civ.App.-Amarillo no compensation). issue writ); Studer, Watt v. 1929, writ); (Tex.Civ.App.-Amarillo no Clem Jackson, 388 S.W.2d at 925. Ry. ents v. Fort D.S.P. Worth & 7 S.W.2d (Tex.Civ.App.-Amarillo no writ); Abilene, Mineola, City City Porter 16 S.W. Jones writ); (Tex.Civ.App.-Texarkana (Tex.Ct.App.1890, Jen writ see also ref’d). County, kins v. Jefferson *10 182 56 Dowd, In the court of faith.” said that a landowner can

have likewise that, complain pleading about the exis- waive the had concluded absent agree by adequacy of an effort to tence that were “unable proof appearing before the commissioners jurisdiction, trial court lacked agree,” the contesting the resisting condemnation or question a fact existed that should and that withdrawing damages,49 of amount trial judge.57 the trial The be resolved from the court’s the Commission’s award This proceedings. court had dismissed the In issue registry.50 those question no fact held that there was Court that complaint to be tried was the owner’s that the trial court should not inadequate.51 At least were the proceedings.58 dismissed that com- two decisions have also held If the “unable efforts to is a matter plaint about subject necessary matter were to confer by the owner or it is plead that must be in jurisdiction, judgments then condemna- waived,52 even if the evidence establishes subject to col- would be of law that there was no effort as matter construing other lateral attack.59 agree.53 statutory we have mandatory provisions, inconsistency between decisions “ of ‘the modern direction observed saying agree” provision that the “unable to vulnerability of to reduce the policy is jurisdiction and implicates matter ground judgments final to attack on the can saying comply failure to be those subject matter lacked the tribunal may this Court to note waived have led ”60 thus held Dubai jurisdiction.’ We Dowd,54 years after the forty-five v. State v. Kazi section Petroleum Co. Derby,55 express no “[w]e decision 71.031(a) Practice and of the Texas Civil the trial court would opinion on whether Code, foreign permits which Remedies jurisdiction of the action had have lacked per- courts for good plaintiffs to sue Texas negotiate failed to State Auth., ing the condemnor 485 that it was incumbent on 49. v. Lower Colo. River Brown 1972, 369, of efforts (Tex.Civ.App.-Austin plead that the owner waived lack S.W.2d 371 Hall, writ); City v. 446 S.W.2d agree). no Austin 330, 1969), (Tex.Civ.App.-Austin 336 rev’d (Tex.1970); grounds, 450 S.W.2d 836 other (Tex.1993). 781 54. 867 S.W.2d Am., Pipeline Co. Lohmann v. Natural Gas 879, (Tex.Civ.App.-Beaumont 882 434 S.W.2d 690, (Tex.Civ.App.-Galves- 55. 215 S.W.2d 692 1968, n.r.e.); City v. writ refd Aronoff 1948, refd). ton writ Dallas, 302, (Tex.Civ.App.- 306 316 S.W.2d 1958, n.r.e.). Texarkana writ ref’d n. 1. 56. 867 S.W.2dat783 Light v. Power & 335 50. McConnico Tex. 71, (Tex.App.- Hipp, v. 832 S.W.2d 75 57. State 397, (Tex.Civ.App.-Beaumont S.W.2d nom., 1992), part State v. Austin rev’d in sub. n.r.e.). writ refd Dowd, (Tex.1993). 867 S.W.2d 781 49-50; Coastal supra *11 ‘When, here, to tell as it is difficult occurring ing: injuries wrongful or death sonal satisfied parties not the country or if the dece- whether or foreign in a state statute, it particular citizen- of a injured party’s country requisites dent judgment a as “equal treaty rights” perverse with the to treat ship has seems States,61 jurisdictional, merely the court perpetually United was not void because requirement good-faith but was a that should be a mistake parties or the made proceeds.62 met before a trial court overruled interpreting the law.”65 We that it characterized Mingus “to the extent acknowledged that holding, In so we a statuto- failure to establish plaintiffs in- opinions, of the Court’s earlier some jurisdictional.”66 as ry prerequisite Mingus Wadley,63 differentiated cluding statutory common-law claims and between be- no substantive distinction We see a trial considering claims when whether statutory require- tween the nature jurisdiction particular a court had over 21.012’s in Dubai and section ment at issue matter: at requirement. As “unable to general

“The rule is where the cause recognized, court least one other has remedy action and for its enforcement a statutory requirement that construing a common law are derived not from the reasonable, authority condemning make statute, statutory pro- but from the negotiate prereq- as a good faith efforts to exclusive, mandatory visions are commencing pro- uisite to “ complied respects must be with all to be a ‘jurisdiction’ proven has ceedings, the action is not maintainable.” elastic, diverse, disparate ‘word of “ ”67 ‘[Tjhere presumption jurisdic- con- That court likewise meanings.’ court, although tion where is one requirement that a cluded jurisdiction, general special exercises on the court’s “is not a restriction statutory powers special statutory Thus, although jurisdiction.”68 matter according manner or otherwise than manda- requirements section 21.012’s are law, the courts of the common since consolidated tory, the trial courts these under such circumstances the court jurisdiction over the condemna- cases had special pow- stands with reference to the regardless of whether the proceedings footing er exercised on the same condemnors satisfied the jurisdic- courts of limited and inferior on the parties “are unable ”64 tion.’ disapprove therefore damages.” We determined, that have however, appeals decisions that this dichoto- those court of We statutory re- suggested ac- that these my statutory between common-law and held or jurisdictional.69 are antiquated problematic, quirements tions was stat- (citing Id. at 73-74 Civ. Prac. & Rem. 66. Id. Tex. 71.031(a)). § Code Lambert, (Colo. 870 P.2d 67. Minto v. at 76-77. Id. cert.denied). Ct.App.1994, (1926), over- 63. 115 Tex. 285 S.W. 1084 Kazi, Id. at 576. Petroleum Co. v. ruled Dubai (Tex.2000). supra cited note 44. 69. See cases Kazi, Mingus, (quoting 12 S.W.3d at 75-76 (Tex.1926) (quoting at 285 S.W. Courts, 148(c), 831-32)). Corpus Juris

65.Id. at 76.

Having engage determined that section can in negotiations for requirements jurisdiction 21.012’s are not condemned, just the land to be as al, we must determine appropriate would have done before the *12 remedy a when condemnor fails to meet were initiated. We therefore conclude those requirements and a landowner has that if a objects landowner in a pleading timely objected. the Because statute is offer, that there has been no and a trial silent as to the consequences for noncom court requirement finds that the pliance, purpose we look to the statute’s in parties are “unable to on the dam- determining proper remedy.70 the The 74 met, ages” has not been the trial court purpose of section 21.012’s “unable to should abate proceedings the for a reason- “ agree” requirement litiga is to ‘forestall period able of time to allow the condemnor prevent and to needless to the agree” require- “unable may courts when the matter have been ment. If at end of a period reasonable by settled negotiations between part time, of the condemnor has not made an ies.’”71 considering remedy for offer, the proceeding should noncompliance with requirements of be dismissed. statutes with similar purposes, we have repeatedly held that is not neces dismissal sary to purpose.72 Rather, achieve such a IY goal protracted statute’s —avoidance procedural by vehicle chosen

litigation accomplished by requir be—can they the condemnors to determine whether ing an proceeding abatement of the until agree” were “unable to with the landown requirement “are un ers the cases us a motion for agree” able to has been satisfied.73 before was While abated, the condemnation partial summary are judgment. Trial courts Albertson’s, Sinclair, Sinclair, Inc. v. 984 S.W.2d (holding 984 S.W.2d at 961-62 958, (Tex.1999) Hash, (citing 961 Hines v. 84 comply statutory require- that failure to with 3 464, (Tex.1992), Schepps S.W.2d 467 petition judicial ment that a for review aof Dallas, Presbyterian Hosp. 652 S.W.2d compensation workers’ decision be filed si- (Tex.1983)). 938 multaneously with the court and the Workers’ Compensation Commission warrants abate- Rankin, County Nueces v. 303 S.W.2d ment, dismissal, Hines, action); of the 843 (Tex.Civ.App.-Eastland no (holding S.W.2d at 469 that abatement is the writ) (citing Indep. Fort Worth Sch. Dist. v. appropriate remedy plaintiff's failure to Hodge, (Tex.Civ.App.-Fort 96 S.W.2d 1113 comply Deceptive with the Trade Practices 1936, writ)); Worth no see also Schlottman v. pre-suit provision); Act’s notice State v. (Tex. County, Wharton 259 S.W.2d $435,000.00, (Tex.1992) dism’d) Civ.App.-Fort (pur- Worth writ (holding compliance statutory with the pose requirement is to save time and ex- requirement pense hearing that a agreement possible); be conducted when Clements Ry. days filing v. Fort Worth & D.S.P. within 30 of an a answer in 1928, writ). (Tex.Civ.App.-Amarillo mandatory, forfeiture action was but noncom- pliance did not necessitate dismissal of the See, Hines, e.g., 843 S.W.2d at 468-69 action); Schepps, (holding 652 S.W.2d at 938 (purpose Deceptive n Trade Practices Act’s appropriate remedy that abatement is the discourage litigation notice is "to plaintiff’s comply failure to with Medical encourage settlements of consumer com- Liability Improvement and Insurance Act's plaints”); Schepps, (pur- pre-suit requirement). notice pose Liability of the Medical and Insurance Improvement pre-suit require- Act’s notice Prop.Code § 74. Tex. 21.012. encourage pre-suit negotiations ment is "to so litigation”). as to avoid excessive cost of comply however, required that is can, agree” [A]ll resolve “unable vehicles, by a an offer making through procedural other statute is issues many pre-trial affirmative is they nothing as resolve threshold and ... county, matters, including ruling plea on a landowner. done required to be Because the issue was raised abatement.75 words, in a case where In other present partial cases in motions for neither mute” and landowner “stands con- summary judgment asserting that the so made rejects nor the offer accepts as a matter of law demnors established law county, of a him or behalf with the were “unable to rejection his silence [as] will construe *13 landowners, we must determine whether offer, showing a and that such any of fact. questions there are on the agree” “a failure to constitutes parties.79 part of the contend that there is a The landowners question fact each case about whether Similarly, City court in Malone v. “good made a faith” effort the condemnors Madisonville held: cases agree damages. on the Some the land- required If the law that both “good negotia- the terms faith” used 76 desiring party and the to con- owner conjunc- tion and “bona fide” effort77 make an effort to demn should agree” require- the “unable to with con- damages, before such the amount However, exceptions,78 with some ment. institut- could be demnation required the case law has minimal evi- ed, would have to then all the landowner agree” dence to the “unable to re- would be do to avoid condemnation v. quirement. example, For Schlottman any effort to refuse to make County, the court held that an Wharton on the desiring to condemn rejected party by offer the condemnor that is ignored enough: damages.80 is See, Co., Clajon statutory settle- e.g., 75. 677 venient in furtherance of the Anderson v. Gas 411; 702, (Tex.App.-Houston objective.” at see also 706 ment 405 S.W.2d [1st Dist.] S.W.2d Houston, 1984, Structures, writ). City Inc. v. 942 no Precast 632, (Tex.App.-Houston [14th 635-36 S.W.2d 1996, writ) validity 406, (examining See, State, Dist.] no e.g., Lapsley 76. v. 405 S.W.2d damages 1966, legal theory regarding condemnor’s (Tex.Civ.App.-Texarkana 411 writ ref'd theory n.r.e.). and evidence consistent with that determining made if a "bona fide” offer was condemnor); by Hipp, 832 S.W.2d at 78- See, e.g., Pipeline Mercier v. MidTexas (same). 79 712, (Tex.App.-Corpus 720 Christi 28 S.W.3d 2000, denied); pet. Hipp, State v. 832 S.W.2d 325, 71, 1992), (Tex.Civ.App.-Fort 330 (Tex.App.-Austin 79. 259 S.W.2d 78 rev’d on other 1953, dism’d); nom., Dowd, Pete-Rae writ see also Worth grounds sub. State v. 867 S.W.2d State, 324, (Tex. (Tex.1993); County, v. 353 S.W.2d 325 Dev. Co. Jenkins v. Jefferson n.r.e.); 1962, Civ.App.-Eastland writ ref'd (Tex.Civ.App.-Beaumont 507 S.W.2d State, n.r.e.); Curfman, 240 S.W.2d writ ref'd Curfman (Tex.Civ.App.-Dallas n.r.e.). (Tex.Civ.App.-Waco ref'd writ 1929, writ); Waggoner also W.T. Estate no see Townsend, dicta, (Tex.Civ.App.- Lapsley the court in v. State said: writ) (holding that when good negotia- contemplates faith Amarillo "This statute willing to "what he was negotiation require an ef- owner was asked Such would tion. price was more investigate the matter for” and by all as- settle fort the condemnor pay, this satisfied would pects prepare than the condemnor of value and work sheets statutory requirement). necessary recapitulation when or con- sheets

In McKinney Independent School Dis- dent commissioners will have reached a Grace, Ltd., trict v. Carlisle the court held determination of before the land- fact that a condemning authority may owner even raise the “unable to did not wait for a counteroffer from the agree” objection. If the landowner ac- landowner is “no evidence to support the cepts assessment, the commissioners’ trial court’s non-finding on the unable-to- matter is at an end. It is after the agree requirement.”81 That court also rejected landowner by has held, reject “We likewise [landowners’] condemnor, independent and after commis- contention that failure to [condemnor’s] sioners reach a conclusion and it is clear provide them with appraisal sup- ... litigation going proceed, ports negative finding on the unable-to- landowners can raise the “unable to agree requirement.”82 Second, issue.86 whether an offer proceedings argue current that there condemning authority was made in “good is at least an inference that they were would, faith” in most be determined willing to continue to negotiate, even in large measure the reasonable market though they rejected either ignored of- value sought to be con- fers we, that the condemnors made. But *14 demned or the amount of inverse condem- like the court in McKinney, reject such a nation damages, or both. The inquiry contention.83 the trial condemnation court’s proceed- persuaded We are also the dollar ing determine the reasonable market —to amount of the generally offer should not value of property sought to be con- be scrutinized. The decisions that have demned and inverse condemnation implicitly explicitly concluded that the largely thus be duplica- —would dollar amount of the condemnor’s offer purpose tive. The of section 21.012’s re- should not compared be with other indica- quirement parties that the be “unable to tions of value are consistent with the statu- require is not to a trial on reason- tory scheme, which does not contemplate able market value before the condemnation such an examination.84 Nor does the stat- may begin. trial The condemnation trial contemplate ute subjective inquiry into will property’s determine the value and “good faith.” earlier, As discussed any damage to the remainder. pur- No purpose of the litiga- statute is “to forestall pose would be by delaying served prevent and to needless appeals.”85 An inquiry subjective into determination to “good first decide whether faith” of a condemnor’s offer condemning authority’s would be anti- offer was so low First, thetical to purpose. this indepen- and made under such that it circumstances cast.”). 81. 83 S.W.3d (Tex.App.-Dallas shall be But see Mercier v. MidTexas pet.). no Pipeline (Tex.App.- Corpus denied) pet. (finding Christi 82. Id. because Ap- condemnor’s offer was twice the praisal appraisal, District’s the offer was (rejecting argument 83. Id. that because land- "bona-fide”). express owners "continued to an interest in negotiating,” were not unable to Hubenak, agree). (quoting 65 S.W.3d at 797 Coun- Rankin, ty Nueces v. See, e.g., City Derby, Houston v. 1957, writ)). (Tex.Civ.App.-Eastland no (Tex.Civ.App.-Galveston ref'd) ("The only purpose writ supra 86. See cases cited note 36. during negotiations which the sums offered can be looked to is to determine how the costs agree” require- to faith.” section 21.012’s “unable “good could not been made have day, At the end of the the result would be are the The three matters issue ment. just if than one the same two trials rather transport products, oil and other right to held. The landowner will receive were easements, and a assign the right to more and no less than the amount awarded to the easement. warranty of title proceed- as a result of the condemnation decision only one Texas We have found pre-suit if the ings, even condemnor’s question raised directly on the that bears faith.” It “good was not made landowners, de- and that case was necessary to two trials to reach the on, after, some of the and relies cided contem- ultimate and determination review statute, court of decisions under plated by the which is a determi- However, ju- value of the con- nation other decisions from here.87 demned. The Illinois Su- risdictions are instructive. had preme held that a condemnor Court

The condemnors have established good attempt negotiate” “a faith shown made offers each of the that the condemnor had filing proceedings. spite of the fact rejected ignored by Those offers were greater rights through negotiations sought enough the landowners. That is That court said: than it condemned.88 par- section 21.012’s It is true that the instrument which For the rea- agree.” ties were “unable first the defendants plaintiff turn, find no sons which we now we than the ultimate execute was broader remaining merit in the landowners’ bases condemned, pos- in that it involved contending that the condemnors have *15 to, entry upon and the damage sible not as a the established matter law surface of defendants’ land. Neverthe- agree” requirement. “unable to less, record, plaintiff on this we think y attempt nego- faith to good has shown a of- spread tiate. The wide between the The do not contend and the de- fering price plaintiff that the condemnors’ final offers included of the physical in property defendants, land addition to or the based on their mand of different from that con described the differing theories of value for the stor- petition. demnation But the landowners age rights, practical shows that no solu- consistently pointed to the fact that have through tion could have been reached the condemnors’ final offers all included negotiation.89 further that not in explicitly three matters were that an Supreme Court held Oregon The petitions cluded the condemnation agree” requirement was met “unable to could argued have that the condemnors pay though the condemnor offered even legally acquire not them condemnation. only that the permitted for easements contend, Thus, con- the landowners the road, and recross the but owner to cross they demnors never made offers for what the owner proceedings, condemnation the legal actually sought to condemn or could therefore, through use the road condemn, permitted not met was ly Buckles, Light Peoples & Coke Co. v. 87. ExxonMobil Pipeline Inter Gas Co. Harrison (1962). Ill.2d 182 N.E.2d ests, Ltd., (Tex.App. 196-97 filed). pet. Dist.] Houston [14th Id. The Oregon though reservation.90 court conclud- ments even the condemnation com- litigation plaint specific ed that was evident from the that was there would be four towers, that the parties agree, pre-litigation itself the could not while offer was not as to specific court the number of towers and the also noted the that owner had required rights certain $70,000 ingress demanded while the condemnor egress and removal of endangering ob- $4,000, offered “it concluding, is hard for structions, none of which part were believe us to that there is chance that proceedings.96 condemnation parties could agreement the reach an out- side court.”91 concurring opinion instant the case, case cites another Indiana Dzur v. Jersey The New Supreme Court held Co.,97 Indiana Northern Public Service a challenge to the fides of “bona Jersey Supreme and another New Court purchase” offer merit had no even case, R. Jersey v. The Central Co. Newof though pre-condemnation offer was to Co., 98- Terminal Railway Hudson purchase simple a fee interest and the law proposition pre-condemnation that a did allow a fee estate to simple be mirror rights must described acquired by condemnation.92 petition condemnation before it can be said An Indiana statutory court has held that were unable requirements though were met even to be cond required condemnor’s offer would have cases, however, emned.99 Those are dis easement, express merger of a former tinguishable because condemnors rights all under it governed to be purchase than more land argued new easement.93 The landowners legally were entitled to condemn. attempting condemnor was to Dzur, condemnor purchase offered to away” “winkle ... [sic] the landowners’ utility 200-foot-wide easement and later in “old rights litigation.”94 The court said sought property. to condemn the same purpose “obvious of the language Supreme The Indiana Court determined pre-condemnation was [in offer] that the condemnor to a was entitled up problems growing clear title out of the 150-fooh-wide easement and held easements,” previous could be ac- which could not re *16 landowners, rejected cepted by the and until commence condemnor .made that this additional matter did not render separate offer for a easem 150-foob-wide “inadequate.”95 the offer ent,100 Terminal, In Hudson the New That same Indiana court held that a Jersey court determined that statute statutory require- condemnor had met only authorized a railroad to land condemn Foster, 90. Mill & Moore Lumber Co. v. 216 95. Id. Or. 204, 39, (1959). 336 P.2d 60 Ind., 96. v. Pub. 158 Ind. Serv. Co. Blaize of 204, (1973). App.

91. Id. 301 N.E.2d 865-66 (1972). 97. Forge County Camden 257 Ind. 278 N.E.2d 563 92. Co. v. Park Commn. County, Camden 14 N.J. Mise. 186 A. of (1936). 520-21 (1884). 98. 46 289 N.J.L. Ind., J., 93. Oxendine v. Pub. Serv. Co. (Jefferson, 99. 141 S.W.3d at concur- (Ind.Ct.App.1980). N.E.2d 621-22 ring). 94. at 622. Id. 100. 278 N.E.2d at 566. their width, thus met 100 feet in but the condemnor The condemnors

up place. submitting evidence that much more land. burden had condemn agree. land pro were unable to The The court said that the condemnation any with conten ceedings respond could not until owners did commence the value of the three condemnor made an offer a 100- tion or evidence of land.101 Unlike Dzur they complain about now strip foot matters which Terminal, ac Hudson would have the tracts of land sub evidence the owners been in the us if those matters had ject cepted to condemnation cases before offers from offers. This lack of con today are the same tracts of land identified omitted was troverting condemnors’ final offers to the land evidence noted Cusack Ranch103 owners. courts (Hubenak the consolidated Hubenak cases us, the In the consolidated cases before Kutach).104 2, Wenzel, Hubenak judgment summary condemnors offered suggests that our hold evidence of their contacts with and offers The concurrence landowners, today a condemnor to offer ing to the counter-offers would allow “ buy ‘only fact then landowners some and the acres and condemn any strip proper accepted that none of the landowners a small the comer ” 105 It in this ty.’ disagree. offer.102 None of the three in the we is the law matters proposed right-of way agreements that are the offer must be for the same state in this in the appeal at issue were at when tract of land described condemna issue us took In the pre-condemnation petition.106 cases (02-0321): Wright 46 NJ.L. offered at 294. Condemnor $16,228.80 $17,000.00. The landown- brevity, interest of the offers despite ers refused sell offers. each case are summarized: (02-0326): highest Wright 2 of- Condemnor’s (02-0213): highest Hubenak Condemnor’s $18,000.00. in this was The land- fer case $6,089.80. combined was land- offer The despite to sell the offer. owners refused they might signifi- owners indicated sell for (02-0359): highest Condemnor’s offer Cusack cantly more. $13,941.00. coun- was The landowners (02-0214): highest Hubenak Condemnor’s approximately wanted tered $24,602.65. land- combined offer was The $35,000.00 inches and the line buried 48 they might signifi- owners indicated sell for deep. cantly more. (02-0215): highest Condemnor’s Wenzel S.W.3d 103. 71 at $14,620.38. was refused regardless sell offer. 104. 65 (02-0216): Kutach The landowner said it per $500.00 would sell for foot. The con- J., concur- 105. 141 S.W.3d at 195 (Jefferson, $6,360.00 demnor and then countered *17 861). Demehl, ring) (quoting 71 S.W.3d at pipeline pay to the and offered re-route $4,632.00. See, e.g., Lighting & Brinton Houston (02-0217): Cusack Ranch offered Condemnor Co., 707, (Tex.Civ. $17,655.00, 709-10 Power the landowner the land- but (hold- w.o.m.) App.-Galveston writ ref’d objected owner to the and amount offered ing purchase an that an offer to easement re-routing pipeline. re-route, of demanded a the merely any width but was for did not mention agree Condemnor would not $25,000.00, sixty per inabil- cents rod did not establish the which but increased its offer to eighty-foot ity for an accept. the landowner did not easement); (02-0320): Pub. Serv. wide see also Blaize Demehl Condemnor offered Ind., $11,333.00, Ind.App. 301 N.E.2d with Co. landowners countered of $120,000.00, (1973) (indicating before insti- and countered condemnor $13,331.00. proceedings, must tuting there condemnation today, parcels the of sought land in the nors could have pipeline utilized the pre-condemnation negotiations were the transport radioactive though material even same parcels that were the of the the might landowner not have consented to subsequent condemnation proceedings. a pipeline carrying such a substance.109 only The difference between the offers and The provides concurrence authority the condemnation petitions was that the support would such a broad construc- three matters identified the proposed tion of right oil, the to transport “gas, right-of-way agreements express were not petroleum, products, or liquids, other ly is, included the latter. There howev gases or substances which can be trans- er, no indication that these three matters ported through pipeline.” Indeed, a were material negotiations to the played authority general and principles of con- any part in parties’ inability to tract interpretation applicable to con- “on the amount of damages.”107 struction private suggest easements

The proposed condemnors’ right-of-way contrary.110 agreements would given the condem- The concurrence would nevertheless right oil, nors the transport “gas, petro- hold that a condemnor cannot establish leum, products, or any liquids, other gases it was to agree” “unable with the or substances which can transported be on damages physical landowner unless the through a pipeline.” The condemnors property intangible property rights sought to condemn a gas pipe- natural purchase condemnor note, line. mirror however, We that a common physical the exact owns, property carrier operates, intangible who or manages a pipeline property transportation rights explicitly included a crude oil has subsequent of eminent and the proceeding. domain,108 transportation of natural gas opposed as The concurrence says “[t]his oil was not at issue in negotiations. is neither burdensome nor complex.”111 implies concurrence that the condem- disagree. We Oil, be for the Gladys to be con- City Mfg. Oil Co. v. Gas & demned, requires "meeting which (1913) a of the Tex. (apply- 157 S.W. 739-40 physical property minds” as to the ing ejusdem generis "and not rule of construction to necessarily upon any incorporeal timber, the more phrase conclude that "all rights”). earth, existing may stone and mineral or that right way” private be found within the in a 21.012(a). Prop.Code deed did purpose not include oil where the Tex. grant "constructing, operating was 111.002(1), (2), (3), maintaining” §§ general a railroad and the Tex. Nat. Res.Code .019(a). words "and preceded by mineral” were "timber, earth, specific stone”); more terms Coop. Hilco Elec. 141 S.W.3d v. Midlothian Butane (Jefferson, cf. J., concur- Co., Inc., (Tex.2003) Gas Ill S.W.3d ring). (observing "ejusdem generis” that the rule of "provides general Assocs., that when words Krohn, na- 110. See Marcus Cable L.P. v. designa- ture are 701-02, used in connection with the (Tex.2002) (out- particular objects persons tion of or classes of lining principles construing basic things, meaning general words interpreting private holding easement and *18 particular designa- will be restricted to the that an permitting easement its holder to use tion”). private property to construct and maintain "an electric transmission or distribution line system” or did not allow the easement to be 111. 141 S.W.3d at (Jefferson, J., concur- lines); used for Right cable-television Way ring). of if the even proceeding, domain simple a matter to de eminent

While is in pur- physical property intangible rights precision scribe with more exactly mirror subject to the condemnation did not that would be chase intangible proper by proceeding, inclusion condemna- sought or obtainable those ty petition in a condemnation does rights tion. “bright-line easily

not lend itself to the by concurrence. The proposed rule” VI a condemnor could obtain intangible rights reasons, conclude we foregoing For may by agreement with the landowner are not requirements 21.012’s that section rights the condem- always parallel not But, entity condemning if jurisdictional. a judgment a by nor obtain virtue of would meet- petition without files a condemnation versa) (and and a because a contract vice and a requirements, ing section 21.012’s are different animals. For ex judgment timely condemnation opposing landowner although might one not be able to ample, abatement, should the trial court requests obligation a landowner’s to warran obtain a reasonable abate ty and defend title condemnation to the condemnor permit time to (which decide), a final judgment we do not conclude, statutory requirements. We degree warranty,112 in of itself a however, in the cases that the condemnors precisely cap and a condemnor could not with section today complied us type warranty private ture that a parties be 21.012’s assignments agreement. regard With to According- damages.” to “unable easements, pipeline an easement for a (1) ly, judgments affirm the we by a in an emi obtained common carrier Hubenak Hubenak courts could, at a mini proceeding nent domain (2) Ranch; Wenzel, Kutach, and Cusack transferred, mum, sold, conveyed be or to judgment appeals’ affirm the court of operate common a another carrier pipe trial that case to the and remand Cusack an ex line as a common carrier without (3) re- proceedings; and court for further right a in the con plicit request such judgments appeals’ verse the court of Thus, petition.113 require demnation Demehl, 1, Wright 2 and re- Wright of symmetry purchase exact between the trial respective cases to their mand those be con property rights fer and the proceedings. further courts for impediment could create an to the demned process that is not contem concurring a filed Justice JEFFERSON plated by purpose of the “unable opinion. Generally, it is suffi agree” requirement. and Justice O’NEILL negotiated for the Justice cient that participate did general same SCHNEIDER physical property same of the later decision. use became (“A judgment (governing § of a judgment § 12.014 transfer 21.065 Prop.Code

112. See Tex. action); chapter Pipe under this vests Valero Eastex court cause of see also condemnor.”). Jarvis, (Tex. granted ato line Co. denied) (stating pet. App.-Tyler (de 111.0194(a) § 113. See Tex Nat. Res.Code assignable are in Texas” "pipeline easements presumption applicable certain scribing assign holding could its that condemnor judgments pertaining grants or condemnation proceeding or in a condemnation interest carrier held a "common to easements judgment pursuant Prop.Code Tex to the pipeline, a successor in interest 12.014). pipeline”); Tex. Prop.Code common carrier *19 n Jefferson, Justice concurring. quire rights the in Right described added.) Way Agreement.” (Emphasis In each of these the landowners that, The landowners were told unless have asserted that the condemnors failed Right executed Way Agreements, satisfy unable-to-agree petition condemnors would to condemn prior filing I agree suit. with them. I rights agreements those described. also with the Court that the require- rights But Agree- described jurisdictional that, ment is not when that, provisions fact, ments included the condemnor has not shown an inability condemnors did not seek to condemn. The agree, the case should be abated for a Right Way Agreements sought, for ex- reasonable time until the condemnor ample, the right transport just natu- makes an purchase offer to property. gas, ral but “any liquids, other gases or Under unique circumstances of these substances which can be transported cases, however, abatement would serve no through pipeline.” They also purpose. Accordingly, join I parts I obligate the “to warrant and through III of opinion the Court’s and its defend title to the easement.” judgments. us, In one of the eases before Hubenak I Co., v. San Jacinto Gas Transmission appeals initially S.W.3d the court of Agree” Requirement The “Unable to held that San Jacinto failed to Property that, provides Code before unable-to-agree requirement filing filed, condemnation suit is the condem- a condemnation petition. opinion by nor must be “unable to with the O’Connor,1 Justice the court wrote: owner of the property on the amount of San Jacinto should have first made an damages,” and the condemnor must specif- for the rights that were out- ically plead inability petition. its lined the board of directors resolution. TEX. PROP.CODE 21.012. This re- That offer would have been bona fide. quirement was intended “to litiga- forestall If San Jacinto rights, wanted additional prevent tion and needless to the it money could have then offered more courts when may the matter have been rights. skipped those San Jacinto by negotiations settled par- between the step. negotiated first It never Rankin, ties.” County Nueces v. rights ultimately sought to con- 457 (Tex.Civ.App.—Eastland demn. Accordingly, pre- San Jacinto writ). 1957, no sented evidence that its offer was In each of the today, cases we review good faith or that negotiations would pre-suit condemnors’ offers included a have been futile. “FINAL OFFER RIGHT OF WAY AGREEMENT” for “a Pipe- Natural Gas Hubenak v. San Jacinto Gas Transmis offers, line.” The “in an 1-99-691-CV, 1-99-959-CV, made effort to sion Nos. 1-99-1359-CV, avoid further expense litigation,” 1-99-1360-CV, con- 2000 WL you reject offer, cluded: “If elect to (TexApp. this [14th Dist.] —Houston 2000) may [the July (opinion condemnor] institute a condem- withdrawn Dec. court], 2001); nation suit in designated [a to ac- Corp. see also Cusack Ranch retirement, 1. After Justice O’Connor's unable-to-agree demnors had satisfied the re- granted rehearing court the motion for quirement. 65 S.W.3d at 801. opinion, deciding withdrew this that the con-

193 395, opportunity Pipeline given MidTexas 71 399 the owner is S.W.3d price only property that in a that (agreeing specific method outlined initial sell at approach subject Hubenak decision is the “better to condemnation. condemnor,” although declining

for the Furthermore, pretense a or of threat require approach). such an by condemnor condemnation made rights on land or for

Similarly, in Pipeline MidTexas Co. v. Demehl, and made in order to ob- condemnation court appeals of held —cor- rights property tain additional or consti- rectly, my opinion MidTexas —that act of the wrongful tutes a and abuse satisfy unable-to-agree failed to re- domain. right of eminent quirement it because did not make an offer encompassing only rights it those could appeals adopted Id. at 861. The court of seek to condemn: I approach Wright this same and legislative

[T]he intent for bona fide [the Wright II. 141 2002 WL S.W.3d attempt agree] requirement was to (No. Court); 02-0321 in this 141 264833 necessity litigation avoid the if (No. S.W.3d 2002 WL 32626070 02- agreement could reach an Court). 0326 this purchase price property of the to be Demehl, decision, initial Hubenak condemned.... believe that We I, II Wright Wright comport and with Legislature, making this suggesting earlier caselaw condem- condemnation, prerequisite as a in- property nors must make offers tended bona fide for the con rights they intend to or are able to condemned, property negoti- to be not a In v. City Derby, demn. Houston ation that properties included other condemnor court noted “had to rights beyond the condemnation. At no allege, during proceed first and then point does the evidence show ings prove, that it had failed to present case that MidTexas made an the on the value their land to appellees including only rights those that it (Tex.Civ. 690, 692 be taken.” 215 S.W.2d acquire through was authorized to a con- d) (emphasis ref App.-Galveston writ proceeding. pur- demnation Offers to added). Court, by assigning City This property chase proper- included the notation, Houston a “writ refused” ty to going beyond be condemned but judg adopted appeals’ the court civil acquiring rights additional reasoning ment and as its own. See Texas properties is not enough to a Timmons, Elec. Co. v. Utils. good negotiation. faith (Tex.1997). Hipp In v. & State rehearing, S.W.3d at 858. On the court Dowd, the court of noted that “[i]n added: proceed the context of eminent domain opinion say arbitrary

This ings, does not and does not the offer must not be rather, imply on a capricious; the condemnor cannot make offers must be based purchase property rights reasonably thorough investigation for and just acquire by which it cannot assessment of the amount of honest However, re proceedings. compensation such an offer due the landowner as a taking.” from sult separate apart should be made 1992) added), (Tex.App. (emphasis law prerequisite the offer made as —Austin Hipp denied as to and rev’d sub nom. to condemnation. This does not mean writ Dowd, as to State grounds to be condemned cannot be on other (Tex.1993). Dowd, offer, separate long as as part State, (Ind.1941)) (citations Ryan required precon- omitted); the court *21 Sackman, demnation “as to the amount see 6 L. also Julius Nichols on Domain, which by 24.14[1], would be sustained Eminent at 24-234-35 (3d 2004) (“If him as a result 21 condemnor, condemnation.” ed. after (Tex.Civ.App. 598 a making acquire particular an offer to —Waco writ) added). 1929, no (emphasis thereof, property or a specific part under- took prop- to condemn other and different jurisdictions adopted Other a simi- erty quantum or a thereof than it offered approach. lar Supreme The Indiana Court purchase, to pur- there was no effort to that, held has before a condemnor can satisfy chase for the land taken to “inability assert agree,” to it must have negotiation requirement. Similarly, if the only made an property sought offer for the prop- condemnor’s offer includes additional to be condemned. See Dzur v. N. Ind. acquire erties that it cannot through con- Co., Pub. Serv. 257 Ind. 278 N.E.2d proceedings, demnation it has not satisfied (Ind.1972) 563 (holding that landowner’s good negotiation faith requirement.”). rejection of purchase offer to 200 foot Likewise, inability easement did not demonstrate Jersey to Supreme New agree, because 150 foot easement was the a pur- Court held that railroad’s offer to condemned). largest land, that could be parcels The chase three when the rail- smaller, court held: legally road could a condemn land, strip one-hundred-foot not an was purchase “An effort to property offer requirements sufficient to sought acquired to be is a condition instituting for proceeding: a condemnation precedent to the to maintain an action to condemn. There can be no If, then, petitioner power has not to compliance with this unless condemn all the land in the described subject of negotiation is clear to both petition, proceedings can these be main- parties, a meeting since of the minds is tained for so much as is hun- within the essential to the existence a valid con- A strip? single dred-feet consideration tract. If a an [condemnor] makes shows that the must stand acquire particular a property, or a or fall in applying toto. Before to the thereof, specific part which offer is re- justice commissioners, company for jected by the utility, owner of the and if must have been unable to with the the [condemnor] then undertakes to con- purchase owner for the of the land re- demn property other or different than quired. The petition avers that purchase, which it has offered to company not agree could with the own- cannot be said that an effort was made price ers as to the of all the lands de- purchase that which it to con- manded; but it means follows demn. bargain could not have been made for strip. sale of the hundred-feet opportu- owners are entitled to have an It is conceivable that if the offer to nity presented for such a contract purchase had related their land can be taken condemna- which is the of the condemnation proceeding tion. Hence entire proceeding, might the offer have been illegal. accepted, litigation which event this would not have necessary.” been Ry. State The Hudson Terminal (N.J.1884); (quoting Corp. Id. Ind. Serv. v. N.J.L. see also Prai Flora, Town Cherry County, 218 Ind. 31 N.E.2d rie View Tel. Co. (Neb.1965) carrying some other substance pipeline Neb. 138 N.W.2d radioactive material —a (say, example, (holding county good did not make of). See, e.g., unheard practice that is not faith attempt because the land Pipeline Uranium Opposes Tribe Utah pro owners “were never offered a definite Gazette-Journal, Slurry, Reno Tailings posal right-of-way as to the exact to be (detailing opposition Apr. Utes’ acquired, consequently were never in carry pipeline of a radio- construction position acceptance to make absolute tailings). active uranium thereof’). *22 I no “provide[ ] The Court contends that today

The Court concludes that the con- authority” a broad construction” for “such demnors unable-to-agree satisfied the re- (though is- suggests preemptively the quirement, pointing fact to “the that none us) language is not that sue of the accepted any offer.” narrowly. would in fact be construed more improper equate rejection But it is to anof hardly But the condemnors’ words could comprehends rights greater offer that than clearer; lan- imagine be is difficult to sought to those be condemned with refusal “any liquids, than guage broader other only property rights to sell those gases or substances which can be trans- sought could or be were to be condemned. ported through pipeline.” (Emphasis a Indeed, pays the Court little heed to the added.). Moreover, that, disagree I be- Legislature’s requirement that the parties included gas pipeline cause a natural was be unable to on the amount of dam- for a to pipeline transport within the offer ages, holding that “[t]he condemnors have substance, the satis- any condemnors have they established that to made offers each statutory requirements. fied the One filing of the landowners before condemna- rejected “greater court of has this proceedings. Those were re- offers theory”: includes the lesser jected ignored by or the landowners. That law, it would allow the this were the [I]f enough satisfy to section 21.012’s re- to an offer on a 500- condemnor make quirements that the were ‘unable of land that had been in the acre tract ” 141 agree.’ S.W.3d at 191. family generations, for five landowner’s adopted by Under the standard landown- that contained the home of the today, Court a any condemnor’s offer for er, improvements numerous made case, property rights including, inas this — landowner, un- properties and other those it does seek to condemn—would connected with the condemnation when unable-to-agree requirement. in- sought to be condemned the area Rather than discouraging litigation, only strip volved a small the corner of may standard In Court’s foment it. these property. The condemnor could cases, despite the fact that the condemnor then, theory, say under sought was authorized and to condemn the stat- negotiated required offer under only gas pipeline, a natural all final made. Such an offer ute had been offers that the condemnor would provided way any connection would “oil, to transport petro- receive condemned, and property with the to be liquids, leum products, gases other could not have certainly Legislature transported offer, which can be though substances even intended for such lesser, through pipeline.” a It is not difficult to to be greater included the in an imagine good negotiation a scenario which a landowner considered a faith property to be accepted attempt purchase would have an offer for a natural to a gas pipeline but would not consent condemned. domain proceeding pleading

Eminent can be demnor controls its and is unique- [sic] simplified simply following ly the stat- suited include the same items it addition, ute legislative by making and the intent pre-suit. the Court’s an offer for the to be “might statement that a condemnor not” compel condemned. be able landowner warrant implies opposite “might” title be Demehl, 71 S.W.3d at 861. simply true. I do not see how a condemn- I with the Demehl court I would ing authority could ever force the landown- that, statute, hold under the the condem- er “to warrant and defend title single pre-suit nors must make a title, easement.” Defense a valuable encompassing only property rights those itself, commodity was intermixed with acquire through will seek to condem physical property in the con- interest nation. This is neither bur reason, demnors’ offers. For densome nor It complex. comports with given pre-suit landowners were never statutory mandate that condemnors *23 damages property standalone offer on demonstrate inability-to-agree and with ultimately sought the condemnor to con- obligation our to construe the statute in demn. against favor of the landowner and the condemnor.2 City Burch v. San Anto nio, (Tex.1975). Ab II showing, this minimal sent the condemnors Disposition cannot show at the time the condemnation petition parties is filed that the are unable cases, my approach Given these is agree damages to on the amount of or that why fair to ask I concur rather than dis- further would be futile. Today, correctly sent. the Court observes Moreover, approach provides bright- this a nothing compli- the statute makes gives line rule that landowners a chance to suit, jurisdictional predicate ance a to rights assess the value of the condemnor is a Legislature imposed specific has not course, entitled to condemn. Of condem- make penalty when condemnors do not precluded negoti nors would not be from they separate rights offers for those ating If rights. for additional these addi Instead, to will seek condemn. the Court rights tional were combined with the appropriate concludes that is an abatement rights single to be condemned in a remedy if a condemnor has not satisfied however, lump payment, for a sum unable-to-agree requirement prior in compliance condemnors would be us, filing suit. In the cases howev- before they with the statute because could not er, remanding they the cases so that could demonstrate, petition time the is unable-to-agree be abated until re- filed, inability agree an on the amount is quirement satisfied would be futile. At damages. stage proceedings, this it is clear disagree agree

I that “in- are unable to on proposition with the property sought to be intangible property rights” clusion of to in- impracticable. pointless a condemned. It would be makes such with, con- the condemnations on technical begin S.W.3d 191. To validate fact, apply contrary plain evidence that the owners would have the Court seems to a presumption, placing the on the con- burden accepted the if those matters had been offers produce demnors to "evidence of the value of omitted from the offers.” 141 S.W.3d at 189. they the three matters about which now com- grounds and remand manding stage, these eases for abate- the case at this so that the prove ment so that the condemnors could trial court can abate the until inability an damages. made, on proper offer is would serve no See, State, purpose. e.g., Hill v. Examining the procedure (Tex.Crim.App.2002) (declining may clarify matters. The condemnor must order when doing abatement so would be petition, file a “statfing] entity act”); L.L.P. Landry “a futile Moore owner are unable Westheimer, P.C., Hirsch & damages.” Tex. Prop.Code 21.012. If (TexApp. [1st Dist.] —Houston alleges “inability condemnor an pet.). Accordingly, under offer, without having ever made an unique circumstances of these attorney condemnor and its could face light of the rule announced the Court sanctions. See Tex.R. Civ. P. 13. After today, disposition the Court’s of these filed, petition judge appoints proper. cases is three disinterested commissioners to hear 21.014(a). § the case. Tex. Prop.Code

Notice of the hearing is sent to the land- Conclusion owner, and hearing is set for “the hold, I contrary would to the Court’s practical earliest time.” Id. 21.015-16. opinion, that the condemnors these con- If the landowner appear wishes to solidated cases did not establish inabili- evidence, present he or she If may do so. ty to agree filed suit. It is occurs, it is clear that the parties are *24 clear, however, that the landowners and unable to on damages prop- for the condemnors came to a point disagree- erty sought to be condemned. Alterna- ment litigation before true commenced be- tively, the landowner can nothing, do cause the “accepted,” condemnors and the the commissioners will hear the case and rejected, the commissioners’ enter their findings. At point, if the circumstances, awards. Under these agrees landowner with the commissioners’ met, statutory requirement was albeit at a decision, he or accept award, she can date later than that contemplated by the and the landowner is appropriately com- Legislature. reiterate, however, I pensated taking. for the If the landowner simplest cheapest solution to this or the dissatisfied, condemnor is either can problem comply is for the condemnor to objections. file Id. 21.018. At with the statute and make an offer for the time, the may landowner assert condemn, property it seeks to filing condemnor engaged has not in negotia- petition. a condemnation tions designed to obtain an agreement as damages. event, In that the trial court Accordingly, join parts I I III through must abate the require ease and the con- of opinion the Court’s and the Court’s demnor to make an property offer for the judgments.

it seeks to condemn. though these even the condem-

nors’ presuit offers were improper, it was

apparent were unable to for the be

condemned after the commissioners en-

tered their award. The landowners ob-

jected and the condemnors did not. Re- notes see also See Auth., Water 592 S.W.2d at 599. Indus. Dowd, 867 S.W.2d at 783. County, v. 507 S.W.2d 52. Jenkins Jefferson Kazi, Petroleum Co. v. 59. See Dubai (Tex.Civ.App.-Beaumont writ (Tex.2000); see also Restatement (Sec- State, n.r.e.); Dyer 388 S.W.2d refd Judgments (1982). § 12 cmt. b ond) 1965, writ). (Tex.Civ.App.-El no Paso Dubai, 12 S.W.3d at 76 County (quoting Restate- Dyer, at 230. But see Judgments Rankin, e (Second) cmt. Nueces ment writ) (hold- (1982)). (Tex.Civ.App.-Eastland

Case Details

Case Name: Hubenak v. San Jacinto Gas Transmission Co.
Court Name: Texas Supreme Court
Date Published: Jul 2, 2004
Citation: 141 S.W.3d 172
Docket Number: 02-0213 to 02-0217, 02-0320, 02-0321, 02-0326, 02-0359
Court Abbreviation: Tex.
AI-generated responses must be verified and are not legal advice.