Texas Landowners Win $2.1 M Judgment Against Pipeline Company Over Lower Property Value

After a one-week trial, a North Texas family won a $2.1 million verdict against a pipeline company after their parcel of land lost value because of an easement taken for a gas line. The dispute began in 2007 when Midland-based Peregrine Pipeline Co. sued family-owned Eagle Ford Land Partners to gain a mile-long easement for a natural gas pipeline. Peregrine claimed Eagle Ford’s damages totaled only about $80,000.  On the other hand, the family’s appraisers and lawyers countered that damages should account not only for the easement strip, but also for the loss in value to the remaining property.

This judgment is one of the largest so far in favor of a landowner and continues a trend in similar Texas condemnation cases. This verdict sends a strong message to pipeline companies that pipeline easements can often cause significant damages to property beyond the easement area and courts are willing to compensate property owners for their damages.

The case is Peregrine Pipeline Co., L.P. v. Eagle Ford Land Partners, LP, No. E-2007-00046. Peregrine plans to appeal.

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