PIPELINE CONDEMNOR'S OFFER MEETS STATUTORY REQUIREMENT FOR INABILITY TO AGREE ON DAMAGES DESPITE INCLUSION OF RIGHTS IN ADDITION TO THOSE CONDEMNED

摘要

In Hubenak v. San Jacinto Gas Transmission Co., 141 S.W.3d 172 (Tex. 2004), the Texas Supreme Court decided nine cases in which the lower court holdings were split between landowners and gas pipeline companies seeking to condemn rights-of-way across their land. The issue involved the requirement of Tex. Prop. Code Ann. § 21.012 that an entity with authority to condemn may begin condemnation proceedings only if it is unable to agree with the owner of the property on the amount of damages. In each case the pipeline company had offered to acquire the right to transport gas, oil, petroleum products, or any other liquids, gases, or substances that can be transported through a pipeline, on a form that expressly granted the right to assign the easement and included a warranty of title. In keeping with the condemnation statutes, when their offers were rejected or ignored, the condemnors sought the right only to transport gas, not fother substances, without a warranty or express assignment right. The. Texarkana court of appeals upheld the dismissal of the condemnation proceedings, agreeing with the landowners that the condemnors had not satisfied the "unable to agree" requirement, ajurisdictional prerequisite, opening the way for significant trespass damages. The pipeline companies had not made good faith offers, according to the Texarkana court, because they had included rights in addition to those that could be condemned. The courts of appeal of Corpus Christi and Houston's First District, on the other hand, held that the landowners' rejection of the condemnors' offers showed inability to agree on damages notwithstanding the inclusion of additional rights.