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Bison Pipeline, LLC v. 102.84 Acres of Land

Citation: 502 F. App'x 717Docket: No. 11-8052

Court: Court of Appeals for the Tenth Circuit; November 14, 2012; Federal Appellate Court

Narrative Opinion Summary

This case involves a legal dispute between a pipeline company and a landowner concerning the appropriate method for determining just compensation for condemned easements in a partial-taking scenario. The central legal questions pertain to the valuation method for compensation, the admissibility of comparable-easement evidence, and the permissibility of awarding compensation that includes initial and periodic payments with an inflation escalator under Wyoming law. The pipeline company asserts that compensation should be exclusively determined by the 'before and after' test, as per Mayland v. Flitner, while the landowner argues for a broader interpretation under Wyoming statutes that allow for alternative valuation methods. The district court endorsed a flexible approach, allowing comparable-easement evidence and the possibility of periodic payments with inflation adjustments. Both parties have cited Wyoming Supreme Court precedents and the Wyoming Eminent Domain Act to bolster their arguments. Due to ambiguities in state law, the United States Court of Appeals for the Tenth Circuit has certified these questions to the Wyoming Supreme Court for clarification. The outcome of these proceedings could significantly impact the calculation of compensation in future eminent domain cases in Wyoming.

Legal Issues Addressed

Admissibility of Comparable-Easement Evidence

Application: The court considers whether parties can introduce comparable-easement evidence to establish just compensation in partial-takings scenarios.

Reasoning: Can comparable-easement evidence be introduced by parties to establish just compensation in partial-takings cases?

Determination of Just Compensation in Partial-Takings Cases

Application: The case examines whether just compensation should be calculated using the 'before and after' test or by comparing the value of the taken property rights to the result of the 'before and after' test.

Reasoning: Is just compensation in partial-takings cases determined by the 'before and after' test or by the greater of the value of the taken property rights and the amount derived from the 'before and after' test?

Interpretation of Wyoming Statutes in Partial Takings

Application: The dispute involves whether Wyoming law, specifically Wyo. Stat. Ann. 1-26-702(b), allows for compensation to be based on the greater of the before-and-after valuation or the value of the property rights taken.

Reasoning: Barlow argues that Wyoming law, specifically Wyo. Stat. Ann. 1-26-702(b), allows for the calculation of just compensation for partial property takings to be based on either the before-and-after valuation or the value of the property rights taken, rather than limiting it to the before-and-after test alone.

Permissibility of Initial, Periodic Payments, and Inflation Adjustments

Application: This case addresses whether Wyoming law permits a jury to award compensation that includes initial payments, periodic payments, and an inflation escalator.

Reasoning: Does Wyoming law allow a jury to award just compensation that includes initial and periodic payments, as well as an inflation escalator?