Ohio Power Co. v. BurnsOhio Power Co. v. Burns
[Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as Ohio Power Co. v. Burns, Slip Opinion No. 2022-Ohio-4713.]
NOTICE
This slip opinion is subject to formal revision before it is published in an advance sheet of the Ohio Official Reports. Readers are requested to promptly notify the Reporter of Decisions, Supreme Court of Ohio, 65 South Front Street, Columbus, Ohio 43215, of any typographical or other formal errors in the opinion, in order that corrections may be made before the opinion is published.
SLIP OPINION NO. 2022-OHIO-4713
OHIO POWER COMPANY, APPELLANT, v. BURNS ET AL, APPELLEES.
[Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as Ohio Power Co. v. Burns, Slip Opinion No. 2022-Ohio-4713.]
Necessity of easements sought by agency through eminent domain—Applicability of necessity presumptions in
(No. 2021-1168—Submitted August 2, 2022—Decided December 29, 2022.
APPEAL from the Court of Appeals for Washington County, Nos. 20CA19 through 20CA22, 2021-Ohio-2714.
{¶ 1} This discretionary appeal involves a dispute between appellant, Ohio Power Company, a public utility and subsidiary of American Electric Power, and appellees, Michael and Misty Burns, Ronald and Barbara Bohlen, Jeffrey and Holly Dexter, and Ryan and Denay May (“the landowners”), over the necessity of easements sought by Ohio Power through eminent domain to upgrade electric-transmission lines. The main issue in this case is whether Ohio Power, a private agency authorized to appropriate property under
{¶ 2} We hold that the term “appropriation” in
{¶ 3} Additionally, we hold that the landowners are not entitled to the fees
{¶ 4} We affirm the appellate court‘s judgment in part and reverse it in part and remand the cause to the trial court for further proceedings consistent with this opinion.
I. BACKGROUND
A. The landowners contest the necessity of easements sought by Ohio Power
{¶ 5} Sometime in 2017, Ohio Power determined that ten miles of electric-transmission lines in Washington County had aged significantly and that the current lines could no longer support the electrical load necessary to adequately service the community. Ohio Power designed a project to replace the aging 23-kilovolt electric-transmission system with a new 138-kilovolt electric-transmission system. However, to successfully complete the project, Ohio Power needed supplemental easements from various property owners, including the landowners in this case.
{¶ 6} When negotiations with the landowners failed, Ohio Power sought supplemental easements by eminent domain under
{¶ 7} The landowners opposed the easements in general, alleging that the appropriations were overly broad and unnecessary, and they challenged the need for several of the easement terms specifically, including the need for distribution lines.
B. The trial court holds a necessity hearing
{¶ 8} The Washington County Court of Common Pleas held a necessity hearing, at which Ohio Power‘s lead transmission-right-of-way agent for the project, Kelly Sue Rentschler, explained the need for the project. She said that the wooden poles supporting the current electric-transmission lines present a safety hazard to the technicians and the public and that the existing 23-kilovolt network was no longer strong enough to support the electrical load required in the area. Rentschler noted that between 2015 and 2017, there were over 30 power outages on that line. So Ohio Power sought to upgrade the system entirely, by replacing the wooden-pole system with a steel-pole system, which would require less maintenance and be more reliable in the long run, and by increasing the electrical-voltage capacity from 23 to 138 kilovolts, to ensure that the new line could supply adequate power to Marietta and the surrounding township.
{¶ 9} Rentschler then explained Ohio Power‘s approach to acquiring the rights needed for the project. She said that generally, Ohio Power would seek easement terms to acquire more rights than were necessary for the project. But if the matter proceeded to litigation, then Ohio Power would change the easement terms to only those that were necessary. Rentschler maintained that the easements at issue in
{¶ 10} On direct and cross-examination, Rentschler explained the need for many of the easement terms: (1) the right to construct and maintain the transmission lines, (2) the right to install a 138-kilovolt transmission line, (3) the right to replace the poles used to support the transmission line, (4) the right to install internal communication lines, (5) the right to install distribution lines, (6) the right to expand the existing easement corridor from 80 to 100 feet, (7) the right to create and use access roads, (8) the right of reasonable ingress and egress to access the transmission lines, (9) the right to cut, trim, and use herbicides within the easement area and in the “tree protection zone,” (10) the provision that if Ohio Power fails to exercise its rights under the easement, that failure will not constitute an abandonment or a waiver of its rights under the easement, (11) the right of the landowners to use the easement land, and (12) Ohio Power‘s duties to the landowners. Of all the easement terms discussed, Rentschler testified that only one of them was unnecessary to the project: the right to install distribution lines. Ohio Power agreed to remove that provision from the easements, but it did so only after the landowners challenged its necessity.
{¶ 11} Additionally, Ohio Power provided evidence that the Siting Board had approved the project, finding it was needed due to “reliability issues caused by the age of the existing 23[-kilovolt] transmission system” and that the project “would serve the public interest, convenience, and necessity.” However, the Siting Board did not review the individual easements or property rights in question in its necessity determination.
{¶ 12} Ohio Power also presented evidence that the Power Board had passed a resolution in December 2019 recognizing the necessity of acquiring easements in connection with the project. However, the Power Board had not reviewed any individual easements in connection with the project and instead, through its resolution, delegated to the officers, engineers, and other agents of the company the authority to acquire individual easements to complete the project.
{¶ 13} After the necessity hearing, the parties submitted briefs with proposed findings of fact and conclusions of law.
C. The trial court finds that the easements are necessary
{¶ 14} The trial court ruled in favor of Ohio Power, finding that the project was necessary and that each easement term other than the distribution-line term was also necessary. The court determined that Ohio Power was entitled to each presumption set forth in
- Ohio Power was entitled to an irrebuttable presumption under
R.C. 163.09(B)(1)(c) because the Siting Board had expressly concluded that the project will “serve the public interest, convenience, and necessity.” - Ohio Power was entitled to a rebuttable presumption under
R.C. 163.09(B)(1)(a) because the Power Board had declared the necessity for the appropriation of the easements. - Ohio Power was entitled to a separate rebuttable presumption under
R.C. 163.09(B)(1)(b) because Rentschler had testified that the appropriations sought by Ohio Power were necessary.
{¶ 16} The court also held that Ohio Power‘s withdrawal of the distribution-line rights from its proposed easements did not constitute an “abandonment” of “appropriation proceedings” under
D. The court of appeals reverses the trial court‘s judgment and remands the cause for additional proceedings
{¶ 17} The landowners appealed to the Fourth District. The appellate court rejected the trial court‘s determination that Ohio Power was entitled to the rebuttable presumption under
{¶ 18} The appellate court also held that Ohio Power had lost the right to appropriate easement rights for distribution lines because the landowners had raised a successful challenge to that term of the easement in their answers and at the necessity hearing. The court agreed with the landowners
E. We accept jurisdiction over Ohio Power‘s discretionary appeal
{¶ 19} Ohio Power filed a discretionary appeal challenging the Fourth District‘s judgment. We accepted jurisdiction and granted review of Ohio Power‘s three propositions of law:
Proposition of Law No. 1: A trial court determines the necessity of an appropriation of an easement by a preponderance of the evidence, subject to the presumptions set forth in
R.C. 163.09(B) . If a landowner specifically denies that the easement is necessary, the rebuttable presumptions set forth inR.C. 163.09(B)(1)(a) andR.C. 163.09(B)(1)(b) may be rebutted only upon the landowner‘s presentation of evidence of bad faith, abuse of discretion, or improper purpose by the agency.Proposition of Law No. 2: A certificate from the Ohio Power Siting Board declaring that a utility project will “serve the public interest, convenience, and necessity” raises an irrebuttable presumption under
R.C. 163.09(B)(1)(c) that the appropriation sought by the public utility for that project is necessary.Proposition of Law No. 3: Modification of easement terms in an appropriation proceeding, whether done voluntarily or by court order, does not trigger the provisions of
R.C. 163.09(G) ,R.C. 163.21(A) , orR.C. 163.21(B) unless the modification fundamentally changes the appropriation and prejudices the landowner.
See 165 Ohio St.3d 1543, 2022-Ohio-397, 180 N.E.3d 1179.
II. ANALYSIS
A. Necessity presumptions under R.C. 163.09(B)(1)
{¶ 20} The main dispute in this case is whether Ohio Power is entitled to any of the three necessity presumptions under
1. “Appropriation” under R.C. 163.09(B)(1) means the appropriation of the specific property that is subject to the taking by the agency as set forth in its petition filed under R.C. 163.05
{¶ 21} To resolve this case, we must determine the meaning of “appropriation” as that term is used in
{¶ 22} The property rights of an individual are fundamental rights, and “the bundle of venerable rights associated with property is strongly protected in the Ohio Constitution and must be trod upon lightly, no matter how great the weight of other forces.” Norwood, 110 Ohio St.3d 353, 2006-Ohio-3799, 853 N.E.2d 1115, at ¶ 38. The state, however, may seize private property when it is necessary for public use. Id. at ¶ 39, 41. To quell the tension between these two rights, the courts’ role is to review the state action “to ensure that the state takes no more than that necessary to promote the public use.” (Emphasis added.) Id. at ¶ 69, citing Buckingham v. Smith, 10 Ohio 288, 296-297 (1840).
{¶ 23} In determining the meaning of “appropriation” in
{¶ 24} We know that the term “appropriation” means the appropriation of the specific property sought to be appropriated by the agency; it does not mean the project or the taking in general, given the restrictions on an agency‘s right to appropriate.
{¶ 25} This conclusion is also supported by many other provisions in the statutory scheme. See
{¶ 26} Ohio Power argues, however, that this interpretation is too narrow. It maintains that the sample form found in
{¶ 27} While this does add a layer of confusion to the process generally, the language in the sample notice form in
{¶ 28} Therefore, we hold that the term “appropriation” as used in
2. Ohio Power is entitled to a rebuttable presumption under R.C. 163.09(B)(1)(b) only
{¶ 29} The presumptions in
{¶ 30} Ohio Power does not dispute that neither the Siting Board nor the Power Board reviewed the individual appropriations in this case, but merely argues that it is absurd to suggest that either would need to do so. We reject this argument.
{¶ 31} Ohio Power is not required to have the Siting Board or the Power Board approve the individual appropriations in order to appropriate a property or an interest or right therein. See
{¶ 32} However, Ohio Power did present evidence of the necessity for the appropriations through Rentschler‘s testimony and exhibits submitted through her testimony, and it is thus entitled to the rebuttable presumption under
3. Remand to the trial court is necessary
{¶ 33} In this case, the trial court erred when it applied the rebuttable presumption in
{¶ 34} The General Assembly requires an agency to set forth in its verified petition the “parcel or contiguous parcels in a single common ownership, or interest or right therein,” that it seeks to appropriate.
{¶ 35} Here, the trial court stated that it reviewed the easement terms and found them all necessary based on Rentschler‘s testimony and its belief that Ohio Power knows best. Generally, a trial court‘s findings of fact will be upheld when they are supported by some competent and credible evidence. See Seasons Coal Co. v. Cleveland, 10 Ohio St.3d 77, 81, 461 N.E.2d 1273 (1984). While Rentschler did discuss each of the easement terms individually during her testimony, and while we have stated that some deference to the government or the agency may be appropriate in eminent-domain cases, Norwood at ¶ 62, 66, a blanket statement that all the easement terms are necessary, without findings to support that decision beyond the deference given to Ohio Power and Ohio Power‘s own agent, Rentschler, makes us question whether the trial court did conduct the appropriate review. Therefore, we remand the cause to the trial court to make the specific findings concerning the challenged easement terms consistent with the presumption set forth in
B. The landowners are not entitled to fees under R.C. 163.21(A) or (B)
{¶ 36} The secondary issue in this case concerns the appellate court‘s determination that the landowners were entitled to fees based on Ohio Power‘s decision to remove the easement term concerning distribution lines. We reverse the appellate court‘s judgment that Ohio Power must pay the landowners fees under
{¶ 38} The landowners argued that the trial court erred in not awarding them fees, because, they asserted, Ohio Power had abandoned the appropriation with regard to the distribution-line rights. The argument was limited to abandonment under
{¶ 39} The lower courts were correct that
{¶ 40} As for whether the landowners are entitled to fees pursuant to
III. CONCLUSION
{¶ 42} Ohio Power is not entitled to a rebuttable presumption under
{¶ 43} We agree with the lower courts that
Judgment affirmed in part and reversed in part
and cause remanded to the trial court.
O‘CONNOR, C.J., and KENNEDY, DEWINE, DONNELLY, and STEWART, JJ., concur.
BRUNNER, J., dissents as to proposition of law No. III but otherwise concurs.
Porter, Wright, Morris & Arthur, L.L.P., Ryan P. Sherman, Christopher J. Baronzzi, Jason T. Gerken, and Syed Ahmadul Huda, for appellant.
Vorys, Sater, Seymour & Pease, L.L.P., Joseph R. Miller, Thomas H. Fusonie, John M. Kuhl, and Daniel E. Shuey, for appellees.
Roetzel & Andress, L.P.A., Stephen D. Jones, and Jeremy S. Young, urging reversal for amicus curiae FirstEnergy Service Company.
JobsOhio and Donnell R. Grubbs, urging reversal for amici curiae JobsOhio, Ohio Southeast, One Columbus, Dayton Development Coalition, REDI Cincinnati, Regional Growth Partnership, and Team NEO.
Affiliated Construction Trades Foundation and Rob Dorans, urging reversal for amicus curiae Affiliated Construction Trades Ohio.
McDonald Hopkins, L.L.C., Adam C. Smith, Matthew R. Rechner, and Richard W. Cline, urging reversal for amici curiae Columbia Gas of Ohio, Inc., the East Ohio Gas Company, d.b.a. Dominion Energy Ohio, and Ohio Gas Association.
Bricker & Eckler, L.L.P., Jennifer A. Flint, Anne Maria Sferra, and Brodi Conover; Flagel & Papakirk, L.L.C., James Papakirk, Gregory E. Hull, and Charles E. Rust; and Brian J. Pokrywka and Jeanne W. Kingery, urging reversal for amici curiae Dayton Power and Light Company, d.b.a. AES Ohio, Buckeye Power, Inc., Vectren Energy Delivery of Ohio, Inc., d.b.a. CenterPoint Energy Ohio, and Duke Energy Ohio, Inc.
Chad A. Endsley, Leah F. Curtis, and Amy Milam, urging affirmance for amicus curiae Ohio Farm Bureau Federation, Inc.
Goldman Braunstein Stahler Kenter, L.L.P., Aaron E. Kenter, and Clinton P. Stahler, urging affirmance for amici curiae Glenn C. Weaver, Angela M. Cooney, Dale Howell, Elizabeth Howell, Lisa Grow, Jessica Grow, Charles W. Edelberger, Susan G. Edelberger, Matthew Tuck, Rebecca L. Tuck, Steven M. Popp, Rechel Mantuhac, Jordan Boswell, Kayla Boswell, Chris Denise Brewer, Thomas L. Mies, Peggy J. Mies, Jeffry A. Kocher, Lori A. Kocher, and William H. Ricker.
Jay R. Carson and Robert Alt, urging affirmance for amicus curiae the Buckeye Institute.
Brian A Morris, Daniel Nelson, and Dana Berliner, urging affirmance for amicus curiae Institute for Justice.