Laclede Gas Co. v. St. Charles Cnty.

• Citation: 713 F.3d 413
• Decision Date: 19 June 2013
• Docket Number: No. 12–2755.,12–2755.
• Parties: LACLEDE GAS COMPANY, Appellee v. ST. CHARLES COUNTY, MISSOURI, Appellant.
• Court: United States Courts of Appeals. United States Court of Appeals (8th Circuit)

713 F.3d 413

LACLEDE GAS COMPANY, Appellee

v.ST. CHARLES COUNTY, MISSOURI, Appellant.

No. 12–2755.

United States Court of Appeals, Eighth Circuit.

Submitted: Jan. 17, 2013.

Filed: April 25, 2013.

Rehearing and Rehearing En Banc Denied June 19, 2013.

Greg Howard Dohrman, argued, Toby J. Dible, on the brief, St. Charles, MO, for appellant.

Booker T. Shaw, argued, Mary M. Bonacorsi, Carl J. Pesce, Paul D. Lawrence, III, on the brief, St. Louis, MO, for appellee.

Before BYE and MELLOY, Circuit Judges, and KOPF,¹ District Judge.

KOPF, District Judge.

This dispute involves the rights of a local government, St. Charles County, Missouri (“County”), and the rights of a public utility, Laclede Gas Company (“Laclede”), in shared easements. The County takes the position that Laclede must alter or relocateits gas lines without compensation if the County so demands. Laclede disagrees and, so far, has been successful in the state courts. Despite this success, the County, according to Laclede, persists in its efforts to interfere with Laclede's gas lines. Among other things, Laclede claims that the County's threatened actions endanger the public safety.

This appeal stems from the district court's ² grant of Laclede's motion for preliminary injunction. Because we conclude the district court had jurisdiction to grant the injunction, and did not abuse its discretion in doing so, we affirm.

I. BACKGROUND

Laclede is a publicly regulated utility company that provides natural gas service throughout the St. Louis, Missouri, area. Using non-exclusive easements that it shares with the County, Laclede maintains gas lines along Pitman Hill Road (“PHR”) and Ehlmann Road (“ER”). In 2007, the County was planning projects along PHR and ER and asked Laclede to relocate its gas lines to accommodate the projects. Laclede responded that it was willing to do so if the County agreed to reimburse Laclede for the costs associated with relocating the lines.

In 2008, the County filed an action in state court seeking a declaratory judgment that it had no obligation to pay Laclede's relocation costs along PHR. However, on August 30, 2011, the Missouri Supreme Court held that Laclede could not be compelled to relocate its lines without reimbursement from the County. St. Charles Cnty. v. Laclede Gas Co., 356 S.W.3d 137, 139–40 (Mo.2011).

On October 11, 2011, Laclede filed this case against the County and L.F. Krupp Construction, Inc. (“L.F. Krupp”). L.F. Krupp was the County's contractor on the road projects. In the complaint, Laclede alleged three claims against the County: a § 1983 claim, a nuisance claim, and a claim seeking declaratory judgment that the County's attempted enforcement of Mo.Rev.Stat. § 229.360 would be unconstitutional. Laclede also alleged a negligence claim against L.F. Krupp. In response, the County and L.F. Krupp both filed motions to dismiss for lack of subject matter jurisdiction. On December 6, 2011, Laclede filed a motion for preliminary injunction. That same day, the County filed a motion to stay any proceedings on the motion for preliminary injunction while the motions to dismiss for lack of subject matter jurisdiction were still pending.

On January 18, 2012, the County moved to supplement to its memorandum in support of its motion to dismiss. The supplement was a petition filed against Laclede in the 11th Judicial Circuit Court, in St. Charles County, Missouri (“ER Proceeding”). In the ER Proceeding, the County sought to compel Laclede to alter its facilities on ER that were in conflict with ongoing County projects.

On February 6, 2012, Laclede filed a motion for leave to file an amended complaint, seeking to add a claim against the County based on the Natural Gas Pipeline Safety Act (“PSA”), 49 U.S.C. §§ 60101–60137. Laclede attached a copy of the proposed amended complaint to the motion. On March 7, 2012, the district court granted Laclede's motion to amend and the amended complaint was filed on that date.³ Over the next two days, the district court held a preliminary injunction hearing. At the hearing, the court discussed the status of the case with the parties and the County informed the district court that it did not believe the amended complaint fixed the jurisdictional issues. The County subsequently moved to dismiss the amended complaint for lack of jurisdiction and for failure to state a claim.

On July 2, 2012, the district court entered an order granting, in part, Laclede's motion for preliminary injunction. The order enjoins the County from (1) constructing any additional portion of retaining wall on top of gas lines on the Pitman easement; (2) removing, or hiring another entity—aside from Laclede—to remove any portion of the PHR gas lines located on the Pitman easement; and (3) removing any portion of the gas lines from the Ehlmann Road easement. The order also directs the County to convey a substitute easement to Laclede to allow access to the gas main under Retaining Wall # 3 on the Pitman Hill tract. In a footnote, the court acknowledged that the County's motion to dismiss for lack of jurisdiction was still pending and stated that a subsequent ruling on the motion would issue in the near future.

On appeal, the County argues that the district court erred in issuing the preliminary injunction without addressing the County's motion to dismiss and, further, that the district court lacked subject matter jurisdiction. The County also argues the district court erred in issuing the preliminary injunction because erroneous conclusions of law and fact tainted its analysis under the factors set forth in Dataphase Sys., Inc. v. C L Sys., Inc., 640 F.2d 109, 114 (8th Cir.1981).

At oral argument, the County conceded that a 11th Judicial Circuit Court, in St. Charles County, Missouri, had recently ruled in favor of Laclede in the ER Proceeding. That decision was rendered during the first week of January 2013. As a defendant, Laclede obtained no injunctive relief as a result of that ruling, and save for the federal injunction, there is no ruling explicitly prohibiting the County from interfering with the gas lines that are the subject of this action.

II. DISCUSSION

We have reviewed the multitude of arguments advanced by the County for reversal of the preliminary injunction order. We are not persuaded by any of them. That said, there are two primary arguments that warrant further discussion.

A. Jurisdiction

Initially, the County asserts that the district court erred, and automatic reversal is required, because the district did not rule on the County's motion to dismiss on jurisdictional grounds. The County would have us adopt a categorical rule that when dealing with a preliminary injunction motion (and, presumably, a motion for a temporary restraining order) district courts must always rule upon an opposing party's assertion that the court lacks jurisdiction. There is no precedent for such a proposition in this Circuit, although the Fifth Circuit may have adopted such a rule. See Enter. Int'l, Inc. v. Corporacion Estatal Petrolera Ecuatoriana, 762 F.2d 464, 471 & n. 22 (5th Cir.1985) (concluding the district court erred in granting a preliminary injunction while deferring decision on the defendant's assertion that the court lacked subject matter and personal jurisdiction under the Foreign Sovereign Immunities Act). We decline to adopt the categorical imperative urged by the County. While we agree that it is preferable to resolve assertions of lack of jurisdiction when ruling upon a motion for a preliminary injunction or a motion for a temporary restraining order, the district court's failure to do so, by itself, does not require reversal.

We turn then to the County's primary argument, that is, that the district court lacked subject matter jurisdiction to enter the preliminary injunction order. We review questions of subject matter jurisdiction de novo. Cmty. Fin. Grp., Inc. v. Republic of Kenya, 663 F.3d 977, 980 (8th Cir.2011).

As discussed above, Laclede amended its complaint on March 7, 2012, to add a claim against the County based on the PSA. The PSA provides that “[a] person may bring a civil action in an appropriate district court of the United States for an injunction against another person ... for a violation of this chapter.” 49 U.S.C. § 60121(a)(1). Section 60123(b) states that “[a] person knowingly and willfully damaging or destroying an interstate gas pipeline facility ... that is used in interstate or foreign commerce or in any activity affecting interstate or foreign commerce, or attempting or conspiring to do such an act, shall be fined under title 18, imprisoned for not more than 20 years, or both, and, if death results to any person, shall be imprisoned for any term of years or for life.” 49 U.S.C. § 60123(b). However, a PSA action cannot be filed until 60 days after proper notice is given to the Secretary of Transportation, or to the appropriate state agency, and to the person alleged to have committed the violation. See49 U.S.C. § 60121(a)(1)-(2); see also Hallstrom v. Tillamook Cnty., 493 U.S. 20, 23 & n. 1, 110 S.Ct. 304, 107 L.Ed.2d 237 (1989) (noting that the 60–day notice requirement of the PSA was patterned after § 304 of the Clean Air Amendments; holding that similar 60–day notice requirement was a mandatory condition precedent to commencing suit and failure to meet requirement required dismissal).

In a letter dated January 4, 2012, Laclede gave notice to the Missouri Public Service Commission (“MPSC”) ⁴ that the County had threatened to tamper with Laclede's gas lines. The County was copied on the letter, which asked the MPSC to take enforcement action to prevent interference with Laclede's gas lines. The letter also notified the MPSC that Laclede intended to file a PSA claim if the MPSC failed to bring an enforcement action against the County. On January 30, 2012, the MPSC advised Laclede that it would not bring an action against the County and that it intended to step aside so...