Sabal Trail Transmission v. Sunderman Groves (10-22-18) 11th Cir. Appellee Response Brief
Sabal Trail Transmission v. Sunderman Groves (10-22-18) 11th Cir. Appellee Response Brief
Sabal Trail Transmission v. Sunderman Groves (10-22-18) 11th Cir. Appellee Response Brief
No. 18-11836-G
Plaintiff-Appellant,
v.
Defendants-Appellees.
Appeal from the U.S. District Court for the Middle District of Florida
Pursuant to Federal Rule of Appellate Procedure 26.1 and 11th Circuit Rule
26.1-1, Appellee, Sunderman Groves, Inc., hereby certifies that it has no parent
corporation and no publicly held corporation owns 10% or more of Appellee’s stock.
Largent, Meghan S.
Pafford, Abram J.
Sunderman, Charles
Sunderman, Janice
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SABAL TRAIL TRANSMISSION, LLC v. 3.921 ACRES OF LAND IN LAKE
COUNTY, FLORIDA, et al., No. 18-11836
Duke Energy Florida, LLC
Page C-2 of 3
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SABAL TRAIL TRANSMISSION, LLC v. 3.921 ACRES OF LAND IN LAKE
COUNTY, FLORIDA, et al., No. 18-11836
Transcontinental Gas Pipe Line Company, LLC
Trial Court
Page C-3 of 3
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Sunderman Groves believes oral argument may be helpful to this Court due
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TABLE OF CONTENTS
A. Background .......................................................................................... 2
B. Proceedings below................................................................................ 3
ARGUMENT .......................................................................................................... 15
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iii
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CONCLUSION ....................................................................................................... 56
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TABLE OF CITATIONS
Cases
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Hessen for Use & Benefit of Allstate Insurance Co. v. Jaguar Cars, Inc.,
915 F.2d 641 (11th Cir. 1990) ...................................................................... 50
vi
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Meredith v. Hardy,
554 F.2d 764 (5th Cir. 1977) .................................................................. 51, 52
Neff v. Kehoe,
708 F.2d 639 (11th Cir. 1983) .......................................................... 46, 48, 50
vii
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viii
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State v. Hawthorne,
573 So.2d 330 (Fla.1991) ............................................................................. 51
United States v. An Easement and Right-of-way Over 6.09 Acres of Land, More or
Less, in Madison County, Alabama,
140 F.Supp.3d 1218 (N.D. Ala. 2015) ......................................................... 50
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Constitutional Amendments
Other Authorities
https://www.ferc.gov/industries/gas/indus-act/pipelines/approved-projects.asp ... 34
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1. Whether the District Court correctly held that Florida state law supplies
the federal rule of decision concerning compensation owed to owners whose private
2. Whether the District Court correctly held that an owner may testify
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A. Background.
joint venture of Spectra Energy Partners, NextEra Energy, Inc., and Duke Energy,
large private energy companies with a combined value in excess of $100 billion.
to Reunion, Florida, to transport natural gas for Florida Power and Light and Duke
domain to acquire pipeline easements through private property. See Natural Gas
Act, 15 U.S.C. §717f (NGA). The NGA allows pipeline companies to file a
thousand acres in Lake County, Florida, for a citrus grove. Doc.127, pp.93-99;
Doc.127, pp.85-87. The property was later transferred to Sunderman Groves, Inc.,
a holding company the Sunderman family created to manage the property. Id.
Successive freezes in the 1980s damaged the Sundermans’ citrus crop, making citrus
sell some of the land. Doc.127, pp.93-99; Doc.130, pp.87-95. The land was mostly
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sold as rural residential lots of ten to twenty acres in size. Id. By 2013 the
Sundermans had sold twenty-five separate tracts totaling more than 500 acres. Id.
One of the remaining tracts the Sundermans still own is a forty-acre parcel on
Lake Erie Road in Groveland, Florida. Sabal Trail wanted to build a gas pipeline
through the Sundermans’ land. The Sundermans didn’t want to sell their property,
so Sabal Trail condemned an easement through the Sundermans’ land. Sabal Trail’s
pipeline bisects the Sunderman property running more than 1,400 feet through the
center of the property. See Addendum (photo and maps of property and pipeline
B. Proceedings below.
On March 18, 2016 Sabal Trail filed this action in the Middle District of
Doc.1. Two months later, the court granted Sabal Trail immediate possession of the
This case is one of about 263 such cases concerning the Sabal Trail Project
filed in federal court in Florida, with approximately 190 cases filed in the Middle
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District and seventy-three cases filed in the Northern District. Doc.152, pp.2-3. The
district courts in the Middle and Northern Districts held Florida substantive law to
be the source of law for the measure of compensation. See Sabal Trail Transmission,
LLC v. Real Estate, 2017 WL 2783995 (N.D. Fla. June 27, 2017); Sabal Trail
Transmission, LLC v. 1.127 Acres of Land, 2017 WL 2799352 (M.D. Fla. June 15,
2017).
Here, there was no similar pretrial briefing or ruling. Thus, the district court
did not rule on the choice-of-law issue until deciding which set of jury instructions
55. The district court instructed the jury to award “full compensation,” consistent
with Florida state substantive law. Id. See also Doc.130, pp.172-85.
After entry of the Final Judgment (Doc. 133) which applied Florida’s “full
owner’s attorneys’ fees and costs, Sabal Trail filed a motion for relief from
Sabal Trail chose to proceed in seventy other condemnation cases and how it
the motion, noting that Sabal Trail chose to litigate the issue in more than seventy
other cases by pre-trial motion but didn’t raise this issue in this case until trial.
Doc.154, p.2.
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The pipeline company’s appraiser, Richard Parham, said the property Sabal
Trail took from the Sunderman family was worth $56,800. Doc.127, pp.190-92.
Matthew Ray, an appraiser the Sunderman family retained, testified that the value
of the property Sabal Trail took was $312,000. Doc.130, pp.40-41. Jan Sunderman
testified the property Sabal Trail took was worth $360,000. Id. at 99-101. The jury
concluded Sabal Trail owed the Sunderman family $309,500. Doc.126. The district
compensation plus pre-judgment interest, and ordered Sabal Trail to reimburse the
Sundermans’ legal fees and expenses as required by Florida law. Doc.133, pp.2-3.
Both appraisers, Parham and Ray, agreed the 39.1-acre tract of the
Sundermans’ property was 26.8 acres of uplands and 12.3 acres of wetlands.
aesthetically pleasing topography that slopes in a gradual direction from the road
down to a beautiful wetland and lake with a white-steepled church next door. Id.
See also Def. Ex. 2A, 2B. Both appraisers and Sabal Trail’s expert land planner,
Eric Rahenkamp, agreed the “highest and best use” of the Sundermans’ land was for
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Sabal Trail took both permanent and temporary easements. The permanent
easement is fifty feet wide. Doc.127, pp.120-25. The temporary easement is twenty-
five feet on either side of the permanent easement. Id. Where it crosses the
stating, “WARNING Gas Pipeline.” Id. Sabal Trail also installed two above-ground
The permanent easement area is 1.535 acres, and the temporary easement area
is 1.476 acres together with an additional .907 acres. Doc.127, pp.139-41. While
the Sundermans retain title to the now-encumbered fee estate, the Sundermans may
no longer exclude others from the land subject to the easement, and the Sundermans
may not use the easement area in any way that interferes with Sabal Trail’s use of
the land. Id. It is now impossible to enter the Sundermans’ property without
Sabal Trail paid their appraiser’s firm $4.1 million to appraise properties for
its project. Doc.127, pp.180-86. Parham used the sales comparison approach
the property in the “before condition” was worth $7,000/gross acre or $273,800. Id.
Parham did not consider the recent sale the Sundermans sold to the Scarlotta family.
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testified that a 25% severance damage applied to the 24.95 acres worth $7,000/gross
the “after condition” was, therefore, $217,000. Id. See also Doc.127, pp.190-92. In
short, Parham testified that the value of the property Sabal Trail took from the
Sunderman family was $8,100 for the permanent easement, $5,000 for the temporary
Parham said he has “never found any damages for public fear or stigma” and
has consistently found damages had “always been zero when it comes to the presence
of the pipeline, whether there would be use of the property, damage, aesthetics, loss
of public fear, or stigma.” Doc.129, pp.16-18. Parham also admitted that, over the
past 17 years in pipeline projects, he only represents pipeline companies with the
pp.166-73.
Ray used the sales comparison approach considering eight upland and three
wetland sales, with two sales being tracts the Sundermans had actually sold.
Doc.129, pp.184,210-11. Ray concluded the property was worth $18,000 per upland
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acre and $1,500 per wetland acre, or $500,997. Doc.129, pp.205-11. Ranking
matched pairs ranging from +17 to -78 percent, Ray testified that a sixty-percent
severance damage applied to the 25.27 acres worth $18,000 per upland acre was
was, therefore, was $200,971. Id. In short, Ray testified that the value of the
property taken from the Sunderman family was $26,249 for the permanent easement,
$15,013 for the temporary easement, and $273,777 in severance damages for a total
Jan Sunderman testified that the land the pipeline company wanted to
condemn has been in the Sunderman family for over ninety years. Doc.130, pp.85-
88. Of the original 4,000 acres Chuck Sunderman’s grandfather owned, she and her
husband received about 860 acres to which they added another 150 acres. Id. Chuck
Sunderman was a citrus grower and approximately 300 acres was used for orange
groves until cold-weather freezes in the 1980s made the groves unprofitable and left
the family with debt. Id. Sunderman testified how the Sundermans successfully
obtained approvals from Lake County. Id. at 88-92. Sunderman testified the upland
portions of the abbreviated parent tract could be subdivided into its platted lots of
record for rural residential development. Id. The Sundermans began selling portions
of the property in the early 1990s in order to stay afloat financially, typically in tracts
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of 5, 10, and, occasionally, 15 acres. Id. Between 1990 and 2016, the Sundermans
have sold approximately twenty-five tracts for rural residential use, mostly platted
lots. Id.
Sunderman explained the details of the recent sales of the family’s property
to the Scarlotta family and the Quinones family. Doc.130, pp.92-96. Without
objection from Sabal Trail, Sunderman also described how the Sundermans have
been marketing their own property without a broker. Id. Sunderman testified:
We have found that we have our most success not advertising, but by
putting a sign by the road. We have frequent people that just drive
county roads looking for a place to buy in the country, and so they
already know where the property is. …[W]e direct them to our home,
they come into our home, we get acquainted, conversations, we try to
find out what they're looking for. We have, in the past, had maybe two
or three different lots to figure out which one they would prefer most,
and just let them find out what they're looking for. We want them to be
happy that they are going to become our neighbors. We want them to
be successful dwellers -- country dwellers, I should say. So then we
give them a car or truck and drive out and look at the property. We
walk it and see what they're thinking and see their eyes light up if they
like it, and they start asking questions and we try to answer them as best
we can.
Id. at 92-93.
When asked what a prospective purchaser was looking for, Sunderman, again
They want to have their own piece of land. They want a bigger lot than
regular, bigger portion of land than they have in town. There is
something about owning land that folks seem to yearn for. They want
to get their children out into the country so they can have animals and
maybe a pony or horse. They just want them to be more familiar with
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nature, to enjoy the beauties of nature, and just the ideal country life.
They want privacy. We have noticed first thing they usually do is build
a fence and put up a gate and sometimes say “no trespassing,” and
security. That’s what they are looking for a nice place to raise their
family.
Doc.130, pp.93-94.
Sunderman testified that it is usually within the first one or two years that the
purchaser builds a home. Doc.130, p.94. Sunderman testified that the amount the
Scarlottas paid ($10,426 per acre) and what the Quinones family paid ($18,763 per
acre) were consistent with the prices she expected today. Id. at 96, 105-09.
Sunderman testified, without objection from Sabal Trail, that the tract through
which Sabal Trail was putting its pipeline had not been put up for sale before the
taking. Doc.130, p.95. She testified that it was “the most beautiful piece” that they
had and that they were holding back from sale anticipating it would appreciate more
in value than the rest and it was the “prettiest” or “our premiere lot.” Id. The
Sundermans tried to persuade Sabal Trail to choose an alternative route. Id. at 96.
Sunderman also testified, without objection from Sabal Trail, that she was
familiar with the easement language used by Sabal Trail and that, as the easement
holder, Sabal Trail has “dominant rights.” Doc.130, pp.97-99. She testified that she
was also familiar with Sabal Trail’s notification letter explaining Sabal Trail’s rights
in the easement land. Id. Sunderman expressed her opinion that when buyers of her
property are moving out to the country, they are trying to get away from an entity
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like a homeowners’ association governing what they do, that they want to “feel like
it’s their private property.” Id. She testified that these buyers will not like all of the
rules and regulations that go along with Sabal Trail’s easement, how one can use it,
how one cannot use it, unless having permission, and even if having permission
having a representative of Sabal Trail to monitor what one is doing. Id. She further
testified that pipeline markers and above-ground devices are ominous and
objectionable and that, because they warn any buyer about the pipeline, there is no
keeping the pipeline a secret. Id. It is marked, 36 inches around, with a billion cubic
feet a day of natural gas, a volatile combustible substance. Id. Sunderman testified
that because a potential buyer is going to pay more than $100,00 to buy a lot and
then invest more than another $100,000 to build a home, she believes a potential
Sunderman testified that, in her opinion, she would be able to subdivide the
almost forty-acre tract into three upland lots, two squares in the front and a third
square in the back. Doc.130, pp.99-101. Before the pipeline bisected the land,
Sunderman believed her property was worth $18,000 per acre. Id. But after the
pipeline was built, Sunderman believed the front two square lots have become
undesirable because “the pipeline cuts right diagonally across them” and, because
the pipeline “hits the corner” of the third square lot, it would continue to have some
prospects. Id. On the basis of more than twenty years’ experience selling this land
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for rural residential use, and considering what she observed to be the motivations of
buyers purchasing her property, Sunderman testified that the front two lots are now
“unsuitable and virtually unmarketable as home sites to raise a family on.” Id. As
such, after the pipeline easement was taken, Sunderman testified, in her opinion, the
front two lots, with the pipeline cutting diagonally, would only sell for agricultural
use at $35,000 each while the back third lot, with the pipeline cutting the corner,
would only sell for $70,000, the total being $140,000. Id. Sunderman believed the
D. Standards of review.
The choice-of-law issue is reviewed by this Court de novo. See Tampa Bay
Water v. HDR Engineering, Inc., 731 F.3d 1171, 1177 (11th Cir. 2013); Alabama
Power Co. v. 1354.02 Acres in Randolph County, Ala., 709 F.2d 666, 668 (11th Cir.
1983) (citing Georgia Power Co. v. Sanders, 617 F.2d 1112 (5th Cir. 1980) (en
banc)). The district court’s decision to allow Sunderman to testify is reviewed under
an abuse of discretion standard. See Rink v. Cheminova, Inc., 400 F.3d 1286, 1291
SUMMARY OF ARGUMENT
This is a simple case. Sabal Trail, acting pursuant to Section 17f(h) of the
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substantive law or whether, instead, the District Court acted correctly in borrowing
owed to Sunderman.
The District Dourt got it right. One of the things that made the District Court’s
job easy, and makes resolution of this appeal simple, is that this Circuit (in its prior
incarnation as part of the old Fifth Circuit) tackled a virtually identical question en
banc in Georgia Power Co. v. Sanders, 617 F.2d 1112 (5th Cir. 1980) (en banc).
pursuant to a federal statutory provision in the Federal Power Act (FPA) that in all
material respects parallels the eminent domain provision of the NGA used by Sabal
Trail in this case. The en banc Court engaged in a careful and thorough choice-of-
required the application of Georgia substantive law as the federal rule of decision
The District Court here correctly recognized that Georgia Power’s status as
binding en banc precedent in this Circuit provided a clear framework for analyzing
the choice-of-law question, and dictated a clear outcome as a result. Nothing Sabal
Trail has said on appeal undermines the District Court’s rationale or its ruling. Sabal
Trail cannot distinguish Georgia Power by citing general references in the NGA to
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the interstate commerce nexus that triggers the applicability of that Act, particularly
where the FPA addressed in Georgia Power contained such references in equal
measure. Of greater importance, Sabal Trail cannot show any federal interest that
owed to Sunderman, and indeed Sabal Trail does not even really try to do so
(probably because any hypothetical conflicts between state law and federal interests
that might theoretically exist were explicitly addressed and discounted in Georgia
Power).
Turning to the other issue raised on appeal, Sabal Trail faces the heavy burden
now owed. The thin reed on which Sabal Trail rests its hopes is the assertion that
the property that was taken, and possessing two decades of personal experience with
the land during which the land was repeatedly subdivided and sold to residential
purchasers) should not have provided her opinion of the severance damages caused
Sunderman’s testimony has no merit. Under both federal and Florida law, there is a
value of the property she owns, including property taken via eminent domain and
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in Sunderman’s case by her own knowledge and experience that went well beyond
as a sophisticated seller of lots to rural residential buyers in the exact location now
burdened by the presence of the Sabal Trail natural gas pipeline. All parties agreed
that the highest and best use of the Sunderman property at issue in this case was
subdivision into rural residential lots. This juxtaposition of the highest and best use
in seeking to achieve profitable sales in the context of that same highest and best
use, confirms that the District Court was well within its discretion when it permitted
Sunderman to testify concerning the value of her property and the likely diminution
ARGUMENT
I. The District Court properly held that Florida substantive law supplies
the federal rule of decision to determine the compensation owed to
Sunderman as a result of Sabal Trail’s taking.
Trail owes Sunderman should begin and end with the binding en banc decision in
Georgia Power. See Bonner v. City of Prichard, 661 F.2d 1206, 1207 (11th Cir.
1981) (en banc) (former Fifth Circuit decisions handed down prior to September 30,
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1981 are binding precedent within the Eleventh Circuit). With that said, it bears
emphasis that the decision in Georgia Power has deep Constitutional roots, and it is
substantive law as the appropriate source for a federal rule of decision concerning
authority, takes private Florida land for use in a privately-owned and operated
infrastructure project.
Starting with the basics, the federal government is one of limited and
enumerated powers, and powers not delegated to the federal government are
reserved to the states. See United States v. Lopez, 514 U.S. 549, 552 (1995). This
inform choice-of-law analysis in the federal courts, because federal courts do not
recognize a “general common law,” and the creation and application of “federal
common law” is constrained and guided by the principle that to the extent
practicable, state law should be allowed to operate in substantive spheres that have
traditionally been state rather than federal domains. See, e.g., Kamen v. Kemper
Financial Services, 500 U.S. 90, 98 (1991); Wallis v. Pan American Petroleum
Corp., 384 U.S. 63, 68 (1966); Eerie R.R. Co. v. Tompkins, 304 U.S. 64, 78-80
(1938). Creating and defining the scope of property interests, especially in real
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property, is a quintessential area in which state law has historically provided the
(1990) (O’Connor, J., concurring) (“In determining whether a taking has occurred,
we are mindful of the basic axiom that [p]roperty interests...are not created by the
Constitution[, but r]ather, they are created and their dimensions are defined by
existing rules or understandings that stem from an independent source such as state
law.”) (quoting Ruckelshaus v. Monsanto Co., 467 U.S. 986, 1001 (1984), and
Webb’s Fabulous Pharmacies, Inc. v. Beckwith, 449 U.S. 155, 161 (1980)) (internal
quotations omitted).
strength of the state interest in avoiding displacement of its laws in settings where a
private entity took land from a private landowner pursuant to a federal statutory
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The analysis in Georgia Power is discussed at greater length below, but the
important point to note at the outset is that Sabal Trail has not identified any reason
why the structural federalism principles undergirding the Georgia Power holding
should be ignored simply because Sabal Trail acted pursuant to an eminent domain
delegation in the NGA, rather than the (strikingly similar) eminent domain
framework used by the en banc Court can be concisely summarized. The Court
noted that principles of federalism shape the appropriate starting point for the choice-
of-law analysis, resulting in a framework where state law should not be displaced
unless there is clear legislative intent that federal common law supply the rule of
decision, or a significant conflict between state law and the federal interests or
Since the statute [the FPA] does not specify the appropriate rule of
decision, the task of interstitial federal lawmaking falls upon the federal
judiciary in this case to declare the governing law in an area comprising
issues substantially related to an established program of government
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After outlining this framework, Georgia Power applied it, and determined that
nothing in the text or legislative history of Section 21 of the FPA revealed an express
congressional intent to have federal common law rather than state law “supply the
brought under Section 21.” Id. at 1118. Georgia Power went on to address the
substantive compensation law, and the federal interests and policies reflected in the
eminent domain delegation granted to the power company pursuant to Section 21.
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general interest in applying uniform federal rules to all private eminent domain
actions authorized by federal statute, and a supposed “conflict” arising from the
increased land acquisition costs to which the power company was exposed by virtue
of applying Georgia law rather than federal common law to determine the
The District Court’s decision in this case to select Florida law as supplying
the federal rule of decision for determining the measure of compensation owed by
Georgia Power. Sabal Trail has identified nothing in the plain language or
legislative history of the NGA’s eminent domain delegation provision that requires
or even suggests a legislative intent to mandate federal common law rather than state
actions arising pursuant to that provision. And Sabal Trail certainly has not
identified any significant conflict with a specific and articulable federal interest that
would warrant displacing state property law in order to reach a result that differs
Georgia Power is addressed in more detail in Section II.B below. But that discussion
is informed by two important aspects of the Georgia Power decision that warrant
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civil litigation, but the pertinent federal statutes did not specifically prescribe rules
litigation. See id. at 1116-1117. The results of this survey were described by the en
banc Court:
Sabal Trail does not acknowledge this aspect of the Georgia Power analysis, and
does not distinguish or even address the body of Supreme Court choice-of-law
precedent that “strongly support[ed]” the conclusions reached by the en banc Court.
surveyed in Georgia Power is that when the United States is not a party to federal
civil litigation, and the case instead involves a dispute between private parties that
nonetheless may implicate federal interests, there is generally a stronger case for
using state substantive law as the federal rule of decision when resolving the merits
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of the dispute.1 This theme is reflected in Georgia Power’s clear distinction between
eminent domain cases in which the United States itself is the condemnor, and those
in which a private party condemnor such as Sabal Trail takes a private owner’s land
1
Compare Clearfield Trust Co. v. United States, 318 U.S. 363, 67 (1943) (federal
common law chosen as rule of decision in action against United States involving
issuance of a federal check), and United States v. Standard Oil Co., 332 U.S. 301,
310-11 (1947) (uniform national treatment via application of federal common law
deemed appropriate in action by United States against third-party tortfeasor arising
from injury to U.S. serviceman) with Bank of America National Trust & Savings
Ass’n v. Parnell, 352 U.S. 29, 33-34 (1956) (state law would supply federal rule of
decision in litigation between private parties involving federal commercial paper),
Wallis v. Pan American Petroleum Corp., 384 U.S. 63, 68 (1966) (state law to supply
federal rule of decision in litigation between private parties relating to federal oil and
gas lease issued pursuant to the Mineral Leasing Act of 1920), and Miree v. DeKalb
County, Georgia, 433 U.S. 25, 30 (1977) (state law held applicable to action against
county by survivors of deceased airline passengers attempting to recover as third-
party beneficiaries of contract between county and Federal Aviation
Administration).
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understatement. Sabal Trail devotes the first two sections of its choice-of-law
argument (nearly eleven full pages) to repeatedly citing cases in which the United
States was the condemnor, Sabal Trail Br., pp. 27-38, without ever explaining why
those cases are relevant in light of Georgia Power’s clear holding that such cases are
not a proper basis for displacing state law as the rule of decision for compensation
in eminent domain cases involving private condemnors. See Georgia Power, 617
F.2d at 1119. As explained at length by Georgia Power, and later echoed by the
Sixth Circuit in a nearly identical case arising under the NGA, private licensees who
the FPA and the NGA may nonetheless find their compensation obligations
determined under state substantive law, in part because their status as licensees does
not make them interchangeable with the federal government itself, and does not
implicate the same federal interests that arise when the federal government embarks
public funds. See id. at 1118-24 (FPA case); Columbia Gas Transmission Corp. v.
Exclusive Natural Gas, 962 F.2d 1192, 1197-99 (6th Cir. 1992) (NGA case). The
under the NGA, because the NGA’s primary aim was “to protect consumers against
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exploitation at the hands of natural gas companies.” Sunray Mid-Con. Oil Co. v.
Fed. Power Comm’n, 364 U.S. 137, 147 (1960) (internal quotations omitted).
There is also no merit to Sabal Trail’s odd suggestion that even if Georgia
somehow obliged to simply mimic federal common law. Sabal Trail Br., p. 44.
Georgia Power and the Georgia state court cases it cites make clear that the
substantive differences between state and federal eminent domain compensation law
arose precisely because Georgia was not bound, in determining “just and adequate
compensation” under the Georgia constitution, to simply mimic federal law. See
Georgia Power, 617 F.2d at 1114-15 & n.4. In addition, contrary to Sabal Trail’s
constitutional and statutory language. See Dade Cty. v. Brigham, 47 So.2d 602, 604-
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force when it tries repeatedly to distinguish or discount its analysis and holding. But
the various arguments proffered by Sabal Trail boil down to the observation that
Georgia Power involved a private condemnor using the eminent domain delegation
in the FPA, whereas this case involves a private condemnor using the element
domain delegation in the NGA. This point, while true as far as it goes, cannot come
even close to sustaining the weight Sabal Trail places on it, and it provides no basis
for distinguishing or ignoring the careful analysis and clear holding of the en banc
Georgia Power already establishes that the eminent domain provision found
at Section 21 of the FPA (16 U.S.C. § 814) does not require federal common law to
displace state law when assessing the measure of compensation owed by private
holding was based in part on the fact that nothing in the plain language or legislative
history of Section 21 states or even suggests that federal common law must supply
the rule of decision for measuring compensation in eminent domain cases involving
Sabal Trail does not point to anything in the language of the NGA’s eminent
domain delegation (Section 717f(h)) that differs in any meaningful way from Section
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21’s eminent domain delegation under the FPA. This is not surprising, because the
obviously the Federal Power Act addresses “dam[s], reservoir[s] and diversion
needing land or other property for a pipeline project “may acquire the same by the
exercise of the right of eminent domain in the district court of the United States for
the district in which such property may be located, or in the State courts”) with 16
U.S.C. §814 (FPA) (private condemnor needing land for water resource project
“may acquire the same by the exercise of the right of eminent domain in the district
court of the United States for the district in which such land or other property may
be located, or in the State courts”). Both eminent domain delegations also contain
identical language stating that in condemnation actions in the United States district
courts, practice and procedure “shall conform as nearly as may be with the practice
and procedure in similar action or proceeding in the courts of the State where the
property is situated.” See 15 U.S.C. §717f(h) and 16 U.S.C. §814. See also
Columbia Gas, 962 F.2d at 1197 (quoting “practice and procedure” language from
intended state law to supply the federal rule of decision for determining just
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The absence of any argument from Sabal Trail engaging the nearly identical
any argument relating to the legislative history of either section. This, again, is not
surprising. Georgia Power held that nothing in the legislative history of the FPA
Power, 617 F.2d at 1118. Similarly, the Sixth Circuit in Columbia Gas addressed
the exact question presented here in an Ohio eminent domain case arising under
Section 717f(h) of the NGA, and emphasized that the legislative history of Section
The bottom line is that nothing in the text or legislative history of the NGA’s
eminent domain delegation suggests an intent to displace state law when determining
the amount of compensation owed by a private condemnor that has taken private
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property for a pipeline project. Nor does the NGA’s eminent domain delegation
differ from the virtually identical provision in the FPA on which it was based, which
reinforces the inescapable conclusion that the holding in Georgia Power applies with
equal force and in equal measure to private condemnors in federal eminent domain
supports the displacement of state law when determining compensation, Sabal Trail
resorts to combing through other sections of the statute in an effort to come up with
something that will remove this case from the scope of Georgia Power’s binding
analysis and holding. These arguments fail, for two key reasons. First, most of the
NGA language cited by Sabal Trail is simply jurisdictional language establishing the
“interstate commerce” nexus that is a necessary predicate for federal legislation, and
the FPA addressed in Georgia Power contains multiple similar provisions. Second,
notwithstanding the various NGA provisions invoked by Sabal Trail, Sabal Trail has
not even tried to identify any specific federal interests that would be hampered or
harmed if state law rather than federal common law is used as the federal rule of
Sabal Trail cites preamble NGA provisions that reference the propriety of
federal regulation “in matters relating to the transportation of natural gas and the sale
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thereof in interstate and foreign commerce,” and exempt from the Act certain purely
certify their ongoing regulatory oversight of these intrastate endeavors. Sabal Trail
Br., p. 40 (citing 15 U.S.C. §717(a) & 717(c)). But the presence of these general
provisions does not suggest or require that federal common law displace state law in
determining compensation owed when private condemnors take land pursuant to the
Nor can these provisions serve to distinguish Georgia Power, because the FPA
local hydrological projects from federal statutory licensing requirements. See, e.g.,
16 U.S.C. §797(a), (e), & (g) (referencing interstate commerce nexus and
Congressional jurisdiction “to regulate commerce with foreign nations and among
powers created under the Act); 16 U.S.C. §817 (creating exemption to federal
licensing requirements for certain hydrological projects not affecting “the interests
Moreover, one of the few differences between the eminent domain delegations
in the two statutes is that the delegation in the FPA explicitly requires a nexus to
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condemnor, whereas the delegation in the NGA does not. See 16 U.S.C. §814
Commission (now the FERC) first finds the proposed project is “desirable and
justified in the public interest for the purpose of improving or developing a waterway
makes little sense to suggest, as Sabal Trail does, that state law is fine for
under the FPA, but only federal common law will do when determining
argument based on an FPA provision that directed the Federal Power Commission
to gather facts and submit reports to Congress if it identified any water resource
project that “should be undertaken by the United States itself.” 16 U.S.C. §800(b).
This provision was cited in Georgia Power as evidence that a project undertaken by
a private licensee “does not implicate the interests of the United States to the degree
that it is thought desirable that the project should be undertaken by the United States
itself.” 617 F.2d at 1118. Sabal Trail argues that the absence of a similar provision
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in the NGA somehow implies that gas pipeline projects are inherently national in
scope, and that therefore federal common law was intended to displace state law in
any NGA eminent domain cases litigated in federal court between landowners and
There are multiple reasons why the FPA’s “investigate and report” provision
for certain potential water resource projects does not negate the applicability of
Georgia Power, and why the absence of such a provision in the NGA does not in
any way imply that federal common law must displace state law in gas pipeline cases
involving private condemnors. First, the primary point being made in the Georgia
Power excerpt cited by Sabal Trail (including in the portion of the Ninth Circuit’s
Public Utility District No. 1 decision quoted in Georgia Power) involves not the size
of the project, but rather the distinction between the interests of the United States
limited national interest at stake where the federal government licenses a private
company’s limited use of the eminent domain power in service of a private project
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purposes of profit.
In other words, where there is no direct taxpayer responsibility for the cost of a
project, and no direct federal role in deploying labor to execute the project pursuant
to a specific federal budget and timetable, the limited federal interests that remain
are adequately served by the existence of the statutory licensing process, and by
agency oversight over the activities of private companies acting in pursuit of private
The second flaw in Sabal Trail’s argument is that by Sabal Trail’s own
logic, the FPA’s “investigate and report” provision proves the opposite of what
Sabal Trail claims. The provision in question shows that water resource projects
foundation for a direct federal role. The NGA, in contrast, does not explicitly
exist for private licensees such as Sabal Trail are sufficient to serve domestic
infrastructure needs. In any event, nothing would stop the United States
government from the direct exercise of its eminent domain power and direct
2
Quoting Public Utility District No. 1 v. City of Seattle, 382 F.2d 666, 669-70 (9th
Cir. 1969) (emphasis added).
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construction of a gas pipeline via federal and contract labor if it wished to do so.
The fact that the federal government seldom if ever makes this choice in the
natural gas pipeline context proves there is no reason why routine pipeline
concerning the compensation owed to private property owners whose land has
been taken pursuant to Section 717f(h) of the NGA. And in this specific case, the
record contains nothing to suggest that the Sabal Trail pipeline project requires
state law as the federal rule of decision on compensation, especially where this
The third problem with Sabal Trail’s strained attempt to distinguish Georgia
Power by referencing the FPA’s “investigate and report” provision for water
resource projects is that actual practice under the NGA does not support the
distinction Sabal Trail tries to invoke. Sabal Trail insists that all gas pipeline projects
are “national” in scope, and routinely cross multiple state lines. But FERC records
indicate the opposite, and indeed public data from FERC’s website suggests that the
majority of pipeline projects licensed under the NGA are carried out within a single
state:
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This table confirms that there is no categorical basis for differentiating private exercises
of eminent domain under the NGA from similar private exercises under the FPA.3
This inability to draw any categorical distinction along these lines negates
Sabal Trail’s unsupported assertion that notwithstanding Georgia Power, the NGA
strikingly similar eminent domain provisions in the two statutes, only a clear and
significant conflict between state substantive law and the federal interests implicated
under Section 717f(h) of the NGA could justify displacing state law in cases
Power, 617 F.2d at 1115-16; Columbia Gas, 962 F.2d at 1198; Bison Pipeline, LLC
v. 102.84 Acres, 560 Fed. App’x. 690, 695-96 (10th Cir. 2013) (rejecting pipeline
company’s assertion that federal common law should displace state law governing
3
The information and data on which this table is based can be found at:
https://www.ferc.gov/industries/gas/indus-act/pipelines/approved-projects.asp.
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appeal has not identified any such conflict (because there is none), and it is too late
to do so now.
C. Sabal Trail has not argued that this case involves an important
federal interest that would be significantly harmed by Florida’s
substantive law concerning eminent domain compensation.
involving whether and in what circumstances federal courts should apply state
question would frustrate specific objectives of the federal programs.” Kamen, 500
U.S. at 98 (quoting United States v. Kimbell Foods, 40 U.S. 715, 728 (1979) (internal
brackets omitted)). This evaluation of the relative state and federal interests was an
important component of the analysis in Georgia Power and Columbia Gas. In both
cases, after a thorough assessment, the courts came down squarely on the side of
court under the eminent domain delegation provisions of the FPA and the NGA. See
Georgia Power, 617 F.2d at 1118-24; Columbia Gas, 962 F.2d at 1198-1199.
Yet despite this, Sabal Trail’s appeal brief does not specifically discuss the
analysis, and Sabal Trail makes no effort to identify any specific interests or
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is no need to regurgitate here the lengthy analysis in both of those cases, in which
the courts (a) identified potential federal interests and also described the strong
state interests in applying state law; and (b) explained in detail why potential
for private condemnors did not justify disregarding state interests and displacing
state substantive law on compensation in FPA and NGA eminent domain cases
involving for-profit licensees such as Sabal Trail. See Georgia Power, 617 F.2d
4
The closest Sabal Trail’s brief comes to touching on this issue is a vague reference,
on pages 46-47, to “a federal interest in having a uniform approach in related
condemnation cases.” But both Georgia Power and Columbia Gas contain detailed
discussion of the “uniformity” issue, and in both cases the courts explained that an
abstract desire for uniformity (a) would not necessarily be served by applying federal
common law against a backdrop of existing state property law, especially given that
private condemnors such as Sabal Trail can generally elect to proceed in either state
or federal court; and (b) did not outweigh the compelling state interest in applying
established principles of state substantive property law when determining
compensation for state landowners. See Georgia Power, 617 F.2d at 1121-24;
Columbia Gas, 962 F.2d at 1198-99.
The two cases cited by Sabal Trail on this point are readily distinguishable, as they
involved entities that were in substantial measure federally funded, and in the
Second Circuit’s Amtrak case, involved a situation in which applying Connecticut’s
substantive law would have subjected Amtrak to complex zoning rules requiring
Amtrak to deploy eminent domain in a manner exceededing the limited scope of its
delegated statutory authority. See Sherwood v. Tenn. Valley Auth., 590 Fed. App’x.
451, 461 (6th Cir. 2014) (TVA case); National Railroad Passenger Corp. v. Two
Parcels, 822 F.2d 1261, 1266-67 (2nd Cir. 1987) (Amtrak case).
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at 1118-24; Columbia Gas, 962 F.2d at 1198-1199. See also Bison Pipeline, 560
in NGA case).
Columbia Gas may explain why Sabal Trail chose not to tackle that angle of the
choice-of-law issue in its brief. And for Sabal Trail to embark on a “weighing of
interests” discussion in its reply brief, when Sunderman has limited ability to
respond, would be the type of improper and unfair tactic forbidden by well-
established appellate rules that prohibit new issues and new matter in reply briefs.
See United States v. Levy, 416 F.3d 1273, 1275-76 (11th Cir. 2005).
common law, and was later reflected by statute. See Fla. Const. Art. X, §6(a);
Brigham, 47 So.2d at 604-05 (“[A]n owner forced into court by one to whom he owes
no obligation cannot be said to have received ‘just compensation’ for his property if
he is compelled to pay out of his own pocket the expenses of establishing the fair
market value of the property, the expenses of which could conceivably exceed such
value”); Jacksonville Expressway Auth. v. Du Pree Co., 108 So.2d 289, 290-92 (Fla.
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1959) (same); Doerr v. Cent. Fla. Expressway Auth., 177 So.3d 1209, 1215 (Fla.
2015) (“[I]t is fundamentally clear that full compensation under the Florida
Constitution includes the right to a reasonable attorney’s fee for the property owner”).
fees into the compensation owed property owners in eminent domain cases, Sabal
Trail tries to avoid the implications of Georgia Power and Columbia Gas by
claiming that even if Florida substantive law applies, there is still somehow an
the authority of state law. Sabal Trail Br., pp. 32-38. This argument begs the
question of whether it is state substantive law or federal common law that should
this case. In addition, Sabal Trail tries to support its argument through the flawed
tactic of repeatedly citing cases in which litigants sought to invoke state procedural
provisions, rather than substantive state law, as the basis for recovering attorney fees
NGA. See Southern Natural Gas Co. v. Land, Cullman Cnty., 197 F. 3d 1368, 1374-
75 (11th Cir. 1999) (federal procedure governs condemnations bought under the
NGA, and Rule 71A (now 71.1) supersedes Section 717f(h)). But, as already
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established, under Georgia Power and Columbia Gas, state substantive law provides
the appropriate federal rule of decision for determining compensation in NGA cases
involving private condemnors. Federal district courts that follow Georgia Power
and Columbia Gas clearly understand this distinction, yet it is ignored by Sabal Trail.
See, e.g., Nat’l Fuel Gas Supply Co. v. 138 Acres, 84 F. Supp.2d 405, 411-12
Fla. May 27, 1999) (holding in NGA condemnation case that “Florida substantive
law will control the actual determination of compensation,” and awarding fees and
costs in later ruling);5 Columbia Gas Transmission, LLC v. Booth, No. 1:16CV1418,
2016 WL 7439348, *5-6 (N.D. Ohio Dec. 22, 2016) (recognizing that Rule 71.1
superseded NGA “practice and procedure” language, but that state substantive law
controls the measure of just compensation); Northern Natural Gas Co. v. Kingman,
2 F. Supp.3d 1174, 1179 (D. Kan. 2014) (same); cf. Guardian Pipeline LLC v.
295.49 Acres, No. 08-C-0028, 2008 WL 4830138, *1 (E.D. Wis. Oct. 28, 2008)
5
The ruling awarding attorneys’ fees is Florida Gas Transmission Co. v. 9.854
Acres, No. 96-14-83-CIV, 2000 WL 33712491 (S.D. Fla. Aug. 25, 2000).
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under Wisconsin law such items were not part of substantive “just compensation,”
Sabal Trail jumbles the issue, citing and quoting assorted federal cases from
other jurisdictions in which litigants sought to invoke state procedural laws or rules
in order to recover attorney fees. Sabal Trail Br., pp. 34, 36-37.6 These cases, even
those arising under the NGA, do not have any bearing on the applicability (per
compensation in eminent domain cases. Sabal Trail also string cites cases that state
the obvious: the American Rule is that fees and costs are not awardable absent a
legal or contractual basis. These cases, however, have no bearing on the fact that
Florida substantive law applies to determining compensation in this case, and Florida
6
Procedural cases erroneously invoked by Sabal Trail include Northern Natural Gas
Co. v. Approximately 9117 Acres, 114 F. Supp.3d 1144, 1171 (D. Kan. 2015) (and
the cases cited therein), Home Savings Bank, F.S.B. v. Gillam, 952 F.2d 1152, 1162
(9th Cir. 1991), and Richmond Elks Hall Ass’n v. Richmond Redevelopment Agency,
561 F.2d 1237, 1334 (9th Cir. 1977). Richmond Elks was also specifically addressed
and distinguished by the en banc Court in Georgia Power, because the court in
Richmond Elks relied heavily on an inapt analogy to a case involving Miller Act
remedies for contractors working on federal property, and also because the
redevelopment agency in Richmond Elks (unlike the Georgia Power Company and
unlike Sabal Trail) was a federally funded entity. See Georgia Power, 617 F.2d at
1119 n.10.
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a landowner is entitled.7
II. The District Court correctly allowed Jan Sunderman to testify about the
value of the Sunderman family’s property.
The Sunderman family’s orange grove failed in the 1980s due to unusually
cold winters. In the 1990s, the Sunderman family began selling portions of the land
they held for their 860-acre orange grove. Doc.130, p.88. The most profitable use
of the Sunderman family’s land was not for a citrus grove but for residential lots. Id.
Over the next twenty-one years, the Sunderman family subdivided their land
into smaller individual tracts, obtained the necessary land use approvals from local
authorities, marketed this property, met with individual buyers, and sold twenty-
three lots. Doc.130, p.104. Jan Sunderman was involved in this process. As such,
marketing individual lots, and negotiating sales with potential buyers. This
experience equipped her with a well-founded perception of the market for the
7
Section III of Sabal Trail’s brief complains of a supposed lack of opportunity to
fully brief the choice-of-law issue before the District Court. This assertion is
questionable in light of the procedural history described in the “Proceedings Below”
section of the Statement of the Case, supra at 3-4. It is also moot, because this is an
issue of law, subject to de novo review, that has now been fully briefed on appeal.
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the Sunderman properties, the Sundermans would invite them into their home to
discuss what features of land they were interested in and the type and size of home
they wanted to build. Doc.130, pp.93-94. The Sundermans would then show
prospective buyers the Sunderman’s land and discuss which parcel most suited the
More than twenty years of experience subdividing, marketing and selling the
Sunderman family’s land provided Jan Sunderman the skill, experience and
knowledge to determine the market for this property and to perceive and understand
2016, the year Sabal Trail condemned the pipeline easement, the Sundermans
negotiated the sale of two properties to the Scarlotta and Quinones families.
Sunderman testified the family did not put this land on the market because this tract
was the most desirable portion of the Sunderman’s land, and she reasonably
anticipated the value of this tract of land would increase as other surrounding
properties were sold. Doc.130, p.95. When the Sundermans learned Sabal Trail
wanted to construct a gas pipeline bisecting the thirty-nine acre tract, the
Sundermans tried to persuade Sabal Trail to choose an alternative route. Id. at 96.
Sunderman explained that, had the pipeline not come through her family’s
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property, the Sundermans planned to divide the parcel into two prime lots, each with
more than three hundred feet of road frontage. This would have maximized the value
of this land. Doc.130, pp.99-100. Jan Sunderman testified that, based upon her
experience selling and marketing the twenty-three other tracts of the Sunderman
land, these lots had a market value of $18,000 per acre.8 Id. at 100.
Sunderman testified that, once the pipeline easement was condemned across
their property, the Sundermans would try to mitigate the damage caused by the
pipeline by subdividing the thirty-nine acre tract into three lots, two in front and one
in back. Doc.130, p.100. This design would segregate almost all of the pipeline-
traversed land to the two front lots and, thereby, preserve at least some value in the
third lot. Id. Sunderman testified the front “two [lots would be] unsuitable and
virtually unmarketable as home sites to raise a family on” due to the pipeline. Id.
Their highest and best use would be agricultural. Id. Sunderman testified she could
likely sell the front two lots for $35,000 each. Id. at 101. Mitigating the effect of
the pipeline in this manner would enable the third lot to retain “some prospects” for
Sunderman testified the front two lots would be almost completely devalued
because families interested in buying their lots are “very careful astute persons[s]”
8
Sunderman testified the recent sales of two other lots were for $10,426 and $18,763
per acre. Doc. 130, p. 108.
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who do not want a 36-inch pipeline with a “billion cubic feet a day” of a “volatile
Sunderman also noted that, in her experience, buyers and potential buyers moving
to the country want to escape city land-use restrictions. Id. at 98-99. She noted that
buyers of Sunderman properties not only value their privacy, but don’t want to have
to ask a large entity for permission to use their property or have that entity monitor
their property. Id. Sunderman stated the “presence of the pipeline overshadows the
Given all these considerations, Sunderman believed that after Sabal Trail’s
pipeline bisected the thirty-nine-acre tract, the land was worth $140,000. This is a
diminution of value close to $360,000 compared to what the property was worth
Sabal Trail’s appraiser, Parham, said the value of that property Sabal Trail
took from the Sunderman family was worth only $56,800. Doc.127, p.190-92. Ray,
the appraiser the Sunderman family called to testify, determined the value of the
property Sabal Trail took to be worth at least $315,039. Doc.130, pp.40-41. The
jury awarded the Sunderman family $309,500 in total compensation. This is less
than Sunderman testified the property was worth and less than the appraiser called
Sabal Trail didn’t want the jury to hear any testimony by Jan Sunderman about
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what Sabal Trail called “stigma” related to the gas pipeline. Sabal Trail appeals
because Judge Moody ruled, “I deny your voir dire, and I overrule your objection,
and all of that can be brought out on cross. If she goes out on a limb, the worse her
testimony is.” Doc.127, pp.163-64. And Judge Moody allowed Jan Sunderman to
testify about the value of the property in the “after-taken” condition as now
encumbered by the gas pipeline. Id. See also Sabal Trail Br., pp. 14-25.
Jan Sunderman did not “go out on a limb.” Her testimony was based upon
individual who transitioned the Sunderman citrus grove property from agricultural
to large residential lots, marketed this property, and negotiated and financed the sale
of these lots – including the 2013 sales of Sunderman property to the Scarlotta and
Quinones families.
Federal Rule of Evidence 701 (as a lay witnesses) and Rule 702 (as a “skilled”
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Federal Rule of Evidence 701…. Notably, ‘Rule 701 does not prohibit lay witnesses
from testifying based on particularized knowledge gained from their own personal
experiences.’” United States v. Jeri, 869 F.3d 1247, 1265 (11th Cir.), cert. denied,
138 S.Ct. 529 (2017) (citing and quoting United States v. Hill, 643 F.3d 807, 841
This Court holds the owner of property is competent to testify as to the value
of his or her property. “Cases binding on this court have held that ‘an owner of
property is competent to testify regarding its value.’ Though such testimony may be
Kehoe, 708 F.2d 639, 644 (11th Cir. 1983). In Dietz v. Consolidated Oil & Gas, 643
F.2d 1088, 1094 (5th Cir. 1981), an oil and gas company objected to the owner
testifying about the value of the owner’s property, arguing that such testimony was
old Fifth Circuit rejected that argument and held, “We disagree. The general rule is
that ‘an owner is competent to give his opinion on the value of his property.’” Id.9
9
This Court adopted the old Fifth Circuit’s precedent prior to September 1981 as
controlling precedent subject to en banc reversal by the new Eleventh Circuit.
Bonner, 661 F.2d at 1209. The Dietz court also cited Kestenbaum v. Falstaff
Brewing Corp., 514 F.2d 690, 698 (5th Cir. 1975), modified on other grounds en
banc, 575 F.2d 464 (5th Cir. 1978), cert. denied, 424 U.S. 943 (1979). Accord
Justice v. Pennzoil Co., 598 F.2d 1339, 1344 (4th Cir. 1979), cert. denied, 444 U.S.
967 (1979).
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estimate [of the value of the owner’s property] was based solely on
speculative factors. The record does not bear this out. [The owner]
testified that he personally know of standing crops of other farmers that
had been sold, and, also, that value of standing crops is often computed
at twice the amount of growing costs. Thus, his opinion testimony was
based on more than naked conjecture, and we think the district court
acted properly in admitting it. “The weight of such testimony is, of
course, affected by the owner's knowledge of circumstances which
affect value, and as an interested witness, it is for the jury to evaluate
the credibility of his testimony.”
When the Federal Rules of Evidence were amended to include what is now
Rules 701 and 702, the Fifth Circuit held that, under both the older and modern
version, an owner may testify about the value of his property. “[U]nder both
[versions of the rules] an owner is competent to give his opinion on the value of his
property.” The old Fifth Circuit held, “however, whether present evidentiary rules
or the new Federal Rules are applied, [the owner’s] estimation of the sum of the
above valuation elements will be admissible since under both an owner is competent
to give his opinion on the value of his property. This rule, established by the weight
of present authority, has now been codified in Rule 702[.]” Kestenbaum, 514 F.2d
at 698-99.
As this Court, and the old Fifth Circuit explained, an owner’s opinion of the
10
Citing and quoting Berkshire Mutual Insurance Co. v. Moffett, 378 F.2d 1007,
1011 (5th Cir. 1967) (citations to record omitted).
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value of his or her property is admissible and should not be excluded from
testimony is not to prevent the jury from hearing the owner’s testimony, but to cross-
examine the owner and present countervailing testimony. “An owner's opinion on
evidence refuting the owner's estimate with the jury as fact-finder shouldering the
evidence, and assessing the weight of opinion testimony.” Kestenbaum, 514 F.2d at
699. See also Neff, 708 F.2d at 655 (“[t]hough such testimony may be ‘self-serving
U.S. Industries, Inc., 887 F.2d 1462, 1469 (11th Cir. 1989), “[t]his Court has
value of their property under Federal Rule of Evidence 702. See Advisory
Committee Notes to Federal Rule of Evidence 702. See also Ruud v. United States,
256 F.2d 460, 461 (9th Cir. 1958) (holding that a district court erred by excluding a
farmer’s testimony “who knows the property, knows the farming practice in the
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about the value of his property may also be admissible under Rule 702. “Rule 702
otherwise.’” Id. at 699. The Fifth Circuit noted that “The Advisory
Committee…construed Rule 702…to include ‘not only experts in the strictest sense
of the word, e.g., physicians, physicists, and architects, but also the large group
received. … If the court is satisfied that such a witness has a proper foundation of
knowledge to offer his appraisal of value to the jury, the witness should be allowed
to state his opinion as to the value of the land.” Id. §23.04. NICHOLS notes that
nonexperts who are “acquainted with the physical surroundings and the character of
the soil… are able to judge the value of the land taken more accurately than any
Federal courts applying Florida law have consistently held “an owner of
property can be qualified to state his opinion as to the value of his property.”
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Johnson v. Thor Motor Coach, Inc., 2016 WL 1182792, at *6 (M.D. Fla. March 28,
2016) (citing Sparger v. Newmar Corp., 2014 WL 3928556, at *6 (S.D. Fla. Aug.
12, 2014); Ames v. Winnebago Indus., Inc., 2005 WL 2614614, at *3 (M.D. Fla. Oct.
14, 2005); Hill v. Marion County, 238 So.2d 163, 166 (Fla. Ct. App. 1970). “A long
line of precedent establishes a general rule in this circuit that an owner of property
is competent to testify regarding its value.” United States v. An Easement and Right-
of-way Over 6.09 Acres of Land, More or Less, in Madison County, Alabama, 140
F.Supp.3d 1218, 1239 (N.D. Ala. 2015) (quoting Neff, 708 F.2d at 644, and citing
Hessen for Use & Benefit of Allstate Insurance Co. v. Jaguar Cars, Inc., 915 F.2d
641, 646 (11th Cir. 1990), Gregg, 887 F.2d at 1469, Electro Services, 847 F.2d at
1526, TDS, Inc. v. Shelby Mutual Ins. Co., 760 F.2d 1520, 1533 (11th Cir. 1985),
Florida state courts follow this long-established rule that an owner is qualified
to testify concerning the value of the owner’s property. “The rule allowing an owner
to testify regarding the value of his property is based on the owner’s presumed
with its uses and purposes, and his experience in dealing with it.” Reliance Ins. Co.
v. Pro-Tech Conditioning & Heating, 866 So.2d 700, 702 (Fla. Ct. App. 2003). See
also Salvage & Surplus, Inc. v. Weintraub, 131 So.2d 515, 516 (Fla. Ct. App. 1961)
(“evidence was admissible under the rule which permits an owner of property to
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testify as to its value though not qualified as an expert”); State v. Hawthorne, 573
So.2d 330, 333 n.6 (Fla.1991) (“We note that an owner of property is generally
qualified to testify as to the fair market value of his property.”). Florida courts have
followed this rule since at least 1918. See Atlantic Coast Line Railroad Co. v.
Sandlin, 78 So. 667, 669 (Fla. 1918) (“in fixing the value of plaintiff’s farm…it was
not error to permit plaintiff to testify as to the price paid for it, since such testimony
The overwhelming authority and the controlling precedent of this Court hold
an owner is competent to testify as to the value of her property. When trial courts
get into trouble it is when they improperly exclude an owner from testifying. See,
e.g., LaCombe v. A-T-O, Inc., 679 F.2d 431 (5th Cir. 1982).11 LaCombe held, “the
general principle, acknowledged in this circuit [is] that the owner of property is
qualified by his ownership alone to testify as to its value.” Id. at 433.12 In LaCombe,
11
LaCombe is a 1982 decision of the Fifth Circuit issued after this Circuit was
established and is not, therefore, controlling authority in the same manner as
decisions of the old Fifth Circuit issued before September 1981. Lacombe,
nonetheless, provides compelling authority because it relied upon pre-1981
decisions of the Fifth Circuit.
12
LaCombe cited a number of prior Fifth Circuit decisions, including pre-1981
opinions, as authority for this proposition. See United States v. 329.73 Acres of
Land, 666 F.2d 281, 284 (5th Cir. 1982) (land); Dietz 643 F.2d at 1094 (growing
crops); Meredith v. Hardy, 554 F.2d 764, 765 (5th Cir. 1977) (trucks, camper and
personal property); Kestenbaum 514 F.2d at 698 (“good will” value of a business);
and Berkshire Mutual Insurance Co., 378 F.2d at 1011 (personal property).
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the trial court excluded an owner’s testimony as to the value of his property. The
Fifth Circuit reversed. “We find therefore find the decision of the district court to be
The Fifth Circuit held the owner “was automatically qualified to give such
testimony by virtue of his being the owner of the property. …In Meredith, supra,
we stated that ‘(a)n owner is always competent to give his opinion’ and in 329.73
Acres, supra, we stated that ‘the opinion testimony of a landowner as to the value of
because of the presumption of special knowledge that arises out of ownership of the
denied Sabal Trail’s motion to exclude Jan Sunderman’s testimony and held Sabal
Trail’s remedy was to cross-examine Sunderman. And, how could he not? Had
Judge Moody made exactly the correct decision. The underlying question
13
Quoting Meredith, 554 F.2d at 746, and 329.73 Acres, 554 F.2d at 284.
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above, Sunderman was qualified to offer her testimony under both Federal Rules of
Evidence 701 and 702. This Court has repeatedly held the remedy available to a
party opposing the testimony is not to exclude the testimony but is to rather cross-
examine the witness or offer countervailing testimony. See, e.g., Kestenbaum, 514
Sunderman. And, Sabal Trail did cross-examine Sunderman. Doc. 130, pp. 102-12.
the abuse of discretion standard. In Kumho Tire Co., Ltd. v. Carmichael, 526 U.S.
137, 152 (1999), the Supreme Court held, “the trial judge must have considerable
particular expert testimony is reliable.” And in General Elec. Co. v. Joiner, the
Court held it will affirm the trial court’s decision unless the court has made a clear
error of judgment or has applied an incorrect legal standard. 522 U.S. 136, 143, 146
(1997) (“We hold, therefore, that abuse of discretion is the proper standard by which
also Piamba Cortes v. American Airlines, Inc., 177 F.3d 1272, 1305-06 (11th Cir.
1999). Similarly, this Court held, “[w]e review the District Court’s exclusion of lay
discretion.” Williams v. Mosaic Fertilizer, LLC, 889 F.3d 1239, 1250 (11th Cir.
2018). “The admission or exclusion of expert testimony is a matter within the sound
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discretion of the trial judge. Only if we determine that his decision is ‘manifestly’
erroneous may we find that he has abused his discretion and that reversal is required.
Salem v. United States Lines Co., 370 U.S. 31, 35 (1962). Sabal Trail fails to
demonstrate that the District Court’s decision allowing Sunderman to testify was
Parham, the appraiser Sabal Trail hired, testified the value of the property
Sabal Trail took from the Sunderman family was worth $56,800. Doc.128, pp.64-
66; Doc.127, pp.190-92. Ray, the appraiser the Sunderman family called, testified
that the property taken from the Sunderman family was worth $315,039. Doc.130,
pp.40-41. Sunderman testified that the property was worth $360,000. Doc.130,
p.101.
Sabal Trail complains because, “the jury’s severance damage award exceeded
the range opined by the appraisers [and] the approximately $9,000 difference
constitutes a substantial impact.” Sabal Trail Br., p. 23. Sabal Trail asserts that Jan
by $9,000. Id. at 24. Sabal Trail asks this Court to reverse the district court and
The principal case upon which Sabal Trail relies for its contention that the
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company for a toxic tort claiming that the factory generated toxic substances that
“exacerbated various medical conditions from which she suffers.” Id. at 1242. She
also contended that these toxic fumes rendered her home unsalable and of no value.
The district court excluded her testimony and entered summary judgement for the
fertilizer company. Williams appealed, and this Court affirmed the district court’s
decision, finding “the District Court did not abuse its discretion in excluding Ms.
Williams’ lay valuation testimony.” Id. at 1250. This Court noted that “Ms.
Williams does not allege she tried to sell her home or spoke with an appraiser or real
estate agent to ascertain its value. Indeed, she concedes she did not.” Id. This Court
found William’s claim that her property had zero value to be “pure speculation.” Id.
“In fact, Ms. Williams testified from her own knowledge that homes in her
neighborhood, including one on the same block as hers, had recently been sold. This
directly refuted her contention that the value of her home was zero.” Id. at 1251.
This Court affirmed the district court’s decision to exclude Williams’ testimony
because her lay opinion “would not have been based on [William’s] personal
Jan Sunderman’s testimony, which Judge Moody allowed, is nothing like the
testimony Rhoda Williams proposed to provide and which the district court in Williams
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personal experience, perception and knowledge as the owner of the property who has
marketed, negotiated and sold tracts of the Sunderman property to buyers – including
two sales in the year the pipeline company condemned its easement.
CONCLUSION
This Court should affirm the jury’s verdict and the district court’s entry of
judgment.
Respectfully submitted,
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CERTIFICATE OF COMPLIANCE
I certify this brief complies with the type-volume and word limit requirements
of Fed. R. App. P. 32(a)(7)(B)(i) because, excluding the parts of the brief exempted
by Fed. R. App. P. 32(f), this brief contains 12,974 words. This brief complies with
the typeface requirements of Fed. R. App. P. 32(a)(5) and the type-style
requirements of Fed. R. App. P. 32(a)(6) because it has been prepared in a
proportionally-spaced typeface using Microsoft Word 2013 in 14-point Times New
Roman font.
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CERTIFICATE OF SERVICE
I certify that on October 22, 2018, I electronically filed the foregoing with the
Clerk of the Court using the Court’s CM/ECF system.
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ADDENDUM
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