Summary 2012 WY 52

Summary of Decision April 10, 2012


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Case Name: BERTHEL LAND AND LIVESTOCK, a Wyoming Limited Partnership v. ROCKIES EXPRESS PIPELINE LLC fka ENTREGA GAS PIPELINE LLC, and KINDER MORGAN NATGAS OPERATOR LLC, both organized under the law of Delaware, ROCKIES EXPRESS PIPELINE LLC fka ENTREGA GAS PIPELINE LLC, and KINDER MORGAN NATGAS OPERATOR LLC, both organized under the laws of Delaware, v. BERTHEL LAND AND LIVESTOCK, a Wyoming Limited Partnership

Docket Number: S-10-0227, S-10-0228

URL:
http://wyomcases.courts.state.wy.us/applications/oscn/DeliverDocument.asp?CiteID=465335

Appeal from the District Court of Laramie County, Honorable Edward Grant, Judge, Retired, and the Honorable Thomas T.C. Campbell, Judge

Representing Appellant (Plaintiff/Defendant): Bill G. Hibbler of Bill G. Hibbler, P.C., Cheyenne, Wyoming

Representing Appellee (Plaintiff/Defendant): David G. Ditto of Associated Legal Group, Cheyenne, Wyoming

Date of Decision: April 10, 2012

Facts: Berthel Land and Livestock (Berthel) entered into a Pipeline Easement Agreement (Agreement) with Rockies Express Pipeline (Rockies Express). After completion of the pipeline, Berthel filed an action against Rockies Express asserting claims for breach of contract and fraudulent inducement. The breach of contract claims alleged a failure to remove rock from the property and a failure to provide required as-built drawings of the completed pipeline, and the fraudulent inducement claim alleged that Rockies Express never intended to remove the rock as required by the Agreement.

The district court granted Berthel summary judgment as to liability on the breach of contract claims, but required a trial on damages on those claims, and denied summary judgment on the fraudulent inducement claim. After a bench trial, the district court found that Berthel had not proven its fraudulent inducement claim or its damages for the rock removal breach. The district court awarded damages for the as-built drawings breach, but at a lesser amount than Berthel requested. Berthel appealed, and Rockies Express cross-appealed.

Issues: Berthel presented the following issues on appeal: Did the district court err as a matter of law by interpreting that the pipeline easement agreement ¶8(m), requires removal of “surface” rocks only? Are the district court’s factual determinations concerning damages for ¶8(m), rock removal, and/or ¶8(q), as-built survey, clearly erroneous? Is the district court’s conclusion that fraudulent inducement was not committed clearly erroneous?

In its cross-appeal, Rockies Express presents these issues: Did the trial court commit error by granting summary judgment for Berthel on the issue of liability for failure to provide Berthel with an as-built survey? Did the trial court commit error by granting summary judgment for Berthel on the issue of liability for failure to remove rocks from the easement? Did the trial court commit error by allowing evidence of “bids” from Berthel’s contractors and engineers that failed to reflect the correct measure of damages?

Holdings: The Court affirmed the district court’s decision on the fraudulent inducement claim and rock removal damages. The Court affirmed in part and reversed in part the award of damages for the as-built drawings breach.

Justice Golden delivered the opinion for the court.