What’s the Deal with Easements?: Overburdening an Easement

Much of my practice is devoted to easement litigation, where I typically defend easements against adverse claims by property owners. Easement litigation can be a highly specialized and nuanced area of practice, and I want to take this opportunity to explain the basics in a straightforward, non-legalese manner. 

As a general rule, the owner of an easement, otherwise known as the “dominant estate owner,” has no right to increase the burden of an easement on the encumbered property, or “servient estate,” or to materially enlarge it, by engaging in a new and additional use of the easement. However, changes in the use of an easement are permitted when they impose no additional burden on the servient estate.

In the absence of language to the contrary, an easement holder may vary mode of enjoyment and use of an easement if by doing so he/she/it can more freely exercise the purpose for which the grant was made. Simply taking advantage of new technology does not result in an increased burden.

The overburdening of an easement is an issue that has been addressed on numerous occasions by the Ohio Supreme Court. In Callen v. Columbus Edison Elec. Light Co., 66 Ohio St. 166, 64 N.E. 141 (1902), the Court held as follows:

“The placing by a private lighting company of poles at the curb in a street, and the stringing thereon of electric light cable lines and wires for the purpose of furnishing light and energy to private takers, is a diversion of the street from the purposes to which it was dedicated, and is a taking of the property of the abutting owner, within the meaning of section 19 of the bill of rights. And such placing of poles, lines, and wires is none the less an unauthorized taking even though it be consented to by the city authorities.”

However, the Ohio Supreme Court reached the opposite conclusion in Friedman Transfer & Construction Co. v. City of Youngstown, 176 Ohio St. 209, 198 N.E.2d 661 (1964), when it held that the City of Youngstown could install water pipes on a bridge that passed over the servient estate pursuant to a perpetual aerial easement for the construction, repair, and maintenance of a “structure.”  In so holding, the Court determined that the installation of the water pipes added no additional burden that might entitle the property owner to additional compensation.

In Ziegler v. Ohio Water Service Co., 18 Ohio St.2d 101, 247 N.E.2d 728 (1969), the Court similarly held that the construction and maintenance of an underground water pipeline in a roadway right-of-way is not an added burden on the servient estate for which additional compensation must be awarded.

In Joliff v. Hardin Cable Television Co., 26 Ohio St.2d 103, 269 N.E.2d 588 (1971) and Centel Cable Television Company of Ohio, Inc. v. Cook, 58 Ohio St.3d 8, 567 N.E.2d 1010 (1991), the Court held that the stringing of a coaxial cable along an easement owned by an electric utility company imposes no compensable additional burden on the servient estate because the two uses are similar and compatible.

These cases demonstrate the difficulty faced by a property owner asserting an overburdening claim. Generally, the battleground in these cases is whether a particular use of an easement constitutes the taking advantage of technological advances that are consistent with the purpose and scope of the easement, or overreaching by the dominant estate holder to use the easement for purposes beyond the intent of the parties when the easement was created.

And that’s basically it for the overburdening of an easement. Stay tuned for additional articles regarding other easement litigation topics I’ve encountered in my practice.

Shopping for land? What you don’t know CAN hurt you!

If you’re in the market for real estate, do yourself a favor and obtain a 100-year title search. Many title searches only look back 40 years. But sometimes 40 years does not go back far enough to reveal certain encumbrances. A good example is a utility easement. Although it might not show up in a 40-year title search, it is perpetual in duration, and the law provides that a property owner is bound by a recorded easement, even if it doesn’t show up in a title search. The last thing anyone wants is to purchase a piece of property for development—or worse yet, for their home—based upon the understanding that it is unencumbered, only to find out later that a utility company has decided to exercise its easement rights.

Be careful with e-mail.

“Hot document” is a legal term applied to certain documents that are especially helpful to one party in a lawsuit and especially damaging to the other. All too often, a hot document is a thoughtless e-mail message sent by a party, or an employee of a party.

A word of advice. Before you hit send on an e-mail that is nasty, indelicate, or downright incriminating, think about how it might look blown up on a projector screen in front of a jury that has the power to make you or your company pay for your ill-advised e-mail.

If that thought makes you uncomfortable, then consider picking up the telephone.

Outside counsel should be involved in selecting experts

Care needs to be taken in the selection of expert witnesses and in the preparation of experts to give testimony at trial. With large, institutional clients, there is sometimes a temptation to select an expert without input from outside counsel. This can be a mistake, particularly if the case is one that ends up being tried.

Experts should be selected with significant input from outside counsel, and counsel should be sure to direct the client toward experts who will make a good appearance and presentation at trial. Few things can damage a case as much as an expert who fails to make an effective presentation on direct examination, or, worse yet, fails to hold up on cross-examination.

The law of eminent domain in Ohio – What is eminent domain?

Where does one begin with a series on the law of eminent domain in Ohio?  How about with some definitions of the term “eminent domain” provided by the Ohio Supreme Court?

  • ‘Eminent domain’ is the right of the sovereign to appropriate private property for public use upon paying to the owner a just compensation therefor to be ascertained according to the methods provided by law. City of Cincinnati v. Louisville & N. R. Co., 88 Ohio St. 283, 102 N.E. 951 (1913).
  • The power [of eminent domain] itself is an inseparable incident of sovereignty, and its exercise was delegated by the sovereign power to the general assembly, in the general grant of legislative authority. It may be defined to be the right of the sovereign, without the consent of the owner, when necessary, to make private property ‘subservient to the public welfare.’ Giesy v. Cincinnati, W. & Z. R. Co., 4 Ohio St. 308, 323-324, 1854 WL 81, 8 (1854).
  • [A]n owner of property holds title to that property subject to a perpetual optional right of his government to acquire that property for public use on the payment of full compensation in money therefor. Rothwell v. Linzell, 163 Ohio St. 517, 527, 127 N.E.2d 524, 531 (1955).

The law of eminent domain in Ohio – Who can use it?

The Ohio Supreme Court has held that “[t]he right of eminent domain belongs to the sovereign power, and statutes delegating authority to exercise it must be strictly construed.” Parkside Cemetery Ass’n v. Cleveland, Bedford & Geauga Lake Traction Co., 93 Ohio St. 161, 112 N.E. 596, Syllabus (1915).  Additionally, “[t]he exercise of the power of eminent domain depends upon the existence of a statute which either by express words or plain implication authorizes the employment of this power…” Sowers v. Schaeffer, 152 Ohio St. 65, 68, 87 N.E.2d 257, 259-60 (1949).

The Ohio General Assembly has consented to the exercise of the power of eminent domain by the U.S. Government.  R.C. 159.03.

Additionally, the General Assembly has delegated the power of eminent domain to a number of state agencies, including the following:

  • Adjutant General – R.C. 5911.05
  • Ohio Building Authority – R.C. 152.21(A)
  • Ohio Public Facilities Commission – R.C. 154.06(A)
  • Ohio Expositions Commission – R.C. 991.07
  • Department of Mental Health – R.C. 5119.37
  • Department of Administrative Services – R.C. 123.21
  • Director of Transportation – R.C. 5519.01 to 5519.06, R.C. 5523.10 (elimination of grade crossings); R.C. 5529.03 (establishment and maintenance of roadside parks); R.C. 5579.01 (appropriation of drainage rights or easements for road improvements).
  • Ohio Turnpike Commission – R.C. 5537.06
  • Chief of the Division of Soil and Water Resources – R.C. 1523.01, 1523.11, 1523.20.
  • Air Quality Development Authority – R.C. 3706.04(J), 3706.17
  • Ohio Water Development Authority – R.C. 6121.04(J), 6121.041, 6121.18.

The General Assembly has also delegated the power of eminent domain to Counties for the following purposes:

  • airports, landing fields, or other air navigation facilities – R.C. 307.20
  • a county hospital or hospital buildings or facilities – R.C. 339.01
  • a county renewal project – R.C. 303.38
  • parks, parkways, and forests – R.C. 301.26, 5707.08
  • recreational centers – R.C. 755.12
  • a county water supply system – R.C. 6103.25
  • sewage purposes – R.C. 6112.05, 6117.39, 6117.47
  • a courthouse, a jail, or public offices, for a bridge and the approaches to it, or for another structure, public marketplace, or market house – R.C. 307.08
  • to construct, improve, maintain, or repair a highway, bridge, or culvert – R.C. 5549.04

Townships may appropriate property for the following purposes:

  • a site for a town hall – R.C. 511.04
  • a memorial building – R.C. 511.11
  • a township park – R.C. 511.24
  • recreational centers – R.C. 755.12
  • Forest – R.C. 5707.08
  • a cemetery – R.C. 517.01, 517.02, 517.13

Municipalities also enjoy the power of eminent domain for public purposes by virtue of Article XVIII, Section 3 of the Ohio Constitution.  State ex rel. Bruestle v. Rich  159 Ohio St. 13, 14, 110 N.E.2d 778, 781 (1953).

Other governmental bodies with the power of eminent domain include the following:

  • a park district – R.C. 1545.11
  • a conservancy district – R.C. 6101.17
  • sanitary and sewer districts and regional water and sewer districts – R.C. 6115.21, 6115.22, 6117.39, 6117.48, 6119.11
  • a port authority – R.C. 4582.06(A)(8)
  • a regional airport authority – R.C. 308.06(H), 308.07
  • a regional transit authority – R.C. 306.36, 306.82
  • a joint township district hospital – R.C. 513.15
  • a metropolitan housing authority – R.C. 3735.32
  • a board of education – R.C. 3313.39
  • a county bridge commission – R.C. 5593.03(A)

The power of eminent domain has also been delegated to a number of private entities, including the following public utilities:

  • telephone companies – R.C. 4931.04
  • electric companies – R.C. 4933.14, 4933.15
  • automatic package carrier companies – R.C. 4933.14
  • waterworks companies – R.C. 4933.151
  • railroads, railways, and union electric interurban terminal and depot companies – R.C. 4951.40, 4953.15, 4961.13

In addition to public utilities, the following private entities are empowered to appropriate property:

  • Hydraulic companies and gas pipeline companies – R.C. 1723.01 to 1723.03, 1571.17 (corporation organized for purpose of transporting, selling, or storing gas)
  • Colleges and universities- R.C. 3333.08 (private college, university, or institution of higher education); R.C. 3354.13 (community college district); R.C. 3357.12 (technical college district)
  • Public park/historic site preservation societies- R.C. 155.27, 1743.06, 1743.07
  • Cemetery companies and associations – R.C. 1721.01, 1721.02

The law of eminent domain in Ohio – the public use requirement

Under the Ohio and U.S. Constitutions, the power of eminent domain can only be used for public purposes.

In this regard, Ohio Revised Code Section 163.021(A) provides that “[n]o agency shall appropriate real property except as necessary and for a public use. In any appropriation, the taking agency shall show by a preponderance of the evidence that the taking is necessary and for a public use.”

In Kelo v. City of New London, Conn., 545 U.S. 469, 125 S.Ct. 2655 (2005), the U.S. Supreme Court famously interpreted the public use requirement very expansively.  The City of New London, Connecticut, had appropriated property for economic development purposes pursuant to an integrated development plan designed to revitalize the city’s economy through the creation of new jobs and increased tax revenue; the project involved a variety of commercial, residential, and recreational land uses. The Supreme Court held that the taking satisfied the “public use” requirement under the U.S. Constitution because the economic development at issue furthered a public purpose.

The Supreme Court of Ohio took a much narrower view of the public use requirement in Norwood v. Horney, 110 Ohio St.3d 353, 853 N.E.2d 1115 (2006), holding that, “[a]lthough economic factors may be considered in determining whether private property may be appropriated, the fact that the appropriation would provide an economic benefit to the government and community, standing alone, does not satisfy the public-use requirement of Section 19, Article I of the Ohio Constitution.”

Consistent with Norwood, Ohio Revised Code Section 163.01(H)(1) provides as follows:

(H)(1) “Public use” does not include any taking that is for conveyance to a private commercial enterprise, economic development, or solely for the purpose of increasing public revenue, unless the property is conveyed or leased to one of the following:

(a) A public utility, municipal power agency, or common carrier;

(b) A private entity that occupies a port authority transportation facility or an incidental area within a publicly owned and occupied project;

(c) A private entity when the agency that takes the property establishes by a preponderance of the evidence that the property is a blighted parcel or is included in a blighted area.

Sometimes, a proposed taking may benefit both public and private interests, and the question becomes whether the public use requirement is satisfied.  In that regard, Ohio case law provides that, “[i]n order to justify the exercise of the power of eminent domain, the purpose to which the property taken is to be applied must be public, primarily public, and not primarily a private interest incidentally beneficial to the public.” Wagar v. City of Lakewood, 1914 WL 1225, 13 (Ohio Com.Pl. 1914) (citing Madisonville Traction Co. v. Mining Co., 196 U. S., 239).  “The fact that private interests are also subserved, or even that such interests defray, in whole or in part, the expense of an improvement, does not take away the otherwise public nature of the improvement.” Weaver v. Pennsylvania-Ohio Power & Light Co., 10 F.2d 759, 762 (6th Cir. 1926).

The following uses have been declared public uses for eminent domain purposes in Ohio:

  • Streets and highways – Pontiac Imp. Co. v. Board of Com’rs of Cleveland Metropolitan Park Dist., 104 Ohio St. 447, 135 N.E. 635 (1922)
  • Off-street parking – Superior Laundry & Towel Supply Co. v. City of Cincinnati, 11 Ohio Op. 2d 350, 84 Ohio L. Abs. 172, 168 N.E.2d 445 (C.P. 1959)
  • Slum and blight clearance and prevention – State ex rel. Bruestle v. Rich, 159 Ohio St. 13, 13, 110 N.E.2d 778, 780 (1953)
  • Scenic use – Richley v. Crow, 43 Ohio Misc. 94, 72 Ohio Op. 2d 420, 334 N.E.2d 542 (C.P. 1975)
  • Nuisance abatement – Lytle v. Potter, 480 F.Supp.2d 986, 990 n.2(N.D.Ohio,2006)
  • utility facilities, roads, sewers, waterlines, public schools, public institutions of higher education, certain private institutions of higher education, public parks, government buildings, port authority transportation facilities, and projects by an agency that is a public utility – R.C. 163.01(H)(2)

Improve your chances at trial: fully prepare your experts

Care must be taken to fully prepare an expert to testify at trial. A truly effective expert is one who not only supports your case, but also combats your opponent’s. Your expert should be provided with an opposing expert’s report(s) and deposition testimony prior to trial, so your expert can testify about deficiencies in the opposing expert’s opinions during your case-in-chief. This can be especially helpful where you present your case first, and/or where your opponent did not arm its expert(s) with the information necessary to combat your case.

The law of eminent domain in Ohio: Taking must be narrowly tailored

Now that we’ve covered what eminent domain is, who can use it, and the public use requirement, it’s time for another consideration:  what–and how much–property can be taken by eminent domain.

Generally, Ohio law permits the exercise of eminent domain to take “any estate, title, or interest in any real property that is authorized to be appropriated by the agency in question, unless the context otherwise requires.” O.R.C. 163.01(F).  In other words, any interest in land–be it outright (known as “fee simple”) ownership, a lease, an easement, or anything else–can be taken, provided that the taking of such interest is authorized by the language of the statute granting the power of eminent domain to the particular agency at issue.

As for the question of how much property can be taken, the answer is:  whatever is necessary for the public project at issue.  The necessity requirement is as well-established as the public use requirement and can be summed up as follows:  “…where there is no necessity for taking private property for public use, the right of eminent domain cannot be successfully invoked.”  Federal Gas & Fuel Co. v. Townsend, 1903 WL 710, 4 (Ohio Com.Pl. 1903).  “Necessity means that which is indispensible or requisite especially toward the attainment of some end…In statutory eminent domain cases it cannot be limited to an absolute physical necessity. It means reasonably convenient or useful to the public…”  City of Dayton v. Keys, 21 Ohio Misc., 105, 112, 252 N.E.2d 655, 659 (Ohio Com.Pl. 1969).

A corollary of the necessity requirement is the rule that, “[w]hen private property is appropriated for a public or quasi-public use, unless express authority is given by statute, no greater estate or interest may be taken than is necessary for such public use. In such case, where an easement is sufficient, only an easement may be taken.”  Henry v. Columbus Depot Co., 135 Ohio St. 311, 20 N.E.2d 921, par. 1 Syllabus (1939).

Thus, appropriating authorities and affected property owners alike should be mindful that a proposed appropriation may take the amount of land–and the particular interest in land–that is necessary for the project at issue, and nothing more.

The law of eminent domain in Ohio: compensation and damages

When private property is taken for a public use, the legal issues involved depend upon whether it is a “total take” or a “partial take.”  As common sense would suggest, a taking is total when it results in the taking of an entire property, and partial when only a part of the property is taken.  In that latter scenario, the part that is not taken is known as the “residue.”

In eminent domain parlance, “compensation” is the fair market value of the property taken.   “”Compensation’ means the sum of money which will compensate the owner of the land actually taken or appropriated; that is, it is the fair market value of the land taken, irrespective of any benefits that may result to the remaining lands by reason of the construction of the proposed improvement.”  Wray v. Stvartak, 121 Ohio App.3d 462, 700 N.E.2d 347 (6 Dist.,1997) (citing Norwood v. Forest Converting Co., 16 Ohio App.3d 411, 415, 476 N.E.2d 695, 700 (1984)).

“Damages means the reduction in the value of the residue caused by the taking.  “‘Damages,’ in the strict sense in which the term is used in an appropriation proceeding, means an allowance made for any injury that may result to the remaining lands by reason of the construction of the proposed improvement, after making all permissible allowances for special benefits, and the like, resulting thereto.”  Id.

With respect to both compensation and damages, the goal is to compensate the property owner based upon the fair market value of the property.  “Fair market value is the amount of money which could be obtained on the open market at a voluntary sale of the property. It is the amount that a purchaser who is willing, but not required to buy, would pay and that a seller who is willing, but not required to sell, would accept, when both are fully aware and informed of all circumstances involving the value and use of the property. Market value is determined by the most valuable and best uses to which the property could reasonably, practically, and lawfully be adapted which is referred to as ‘the highest and best use.’” Masheter v. Ohio Holding Co., 38 Ohio App.2d 49, 54, 313 N.E.2d 413, 416 (1973). See also, Sowers v. Schaeffer, 155 Ohio St. 454, 99 N.E.2d 313, ¶3 of Syllabus (1951).

“In determining the market value of land taken…every element that can fairly enter into the question of value, and which an ordinarily prudent business man would consider before forming judgment in making a purchase, should be considered, and the market value of the land shall be determined on the basis of the circumstances existing the moment before the take.” In re Appropriation for Hwy. Purposes of Land of Winkelman, 13 Ohio App.2d 125, 234 N.E.2d 514, Syllabus par. 1 (3rd Dist.1968).

If the concept of fair market value sounds straight forward, stay tuned.  Like most things in the law, it has gotten pretty complicated over the years.