Case Study: Eminent Domain

Eminent Domain In this case, the City of Monroe, North Carolina decided in April of 2002, to supply the citizens of Monroe and surrounding area with natural gas through a direct connection between its natural gas distribution system and the Transcontinental Pipeline. The Transcontinental Pipeline transports and distributes natural gas from the Gulf of Mexico up through the northeastern United States. The parties of this case requested the court to focus on the validity of a local government’s exercise use of its power of eminent domain. According to our textbook, Business Law Text and Cases, eminent domain is sometimes referred to as the condemnation power of government to take land for public use. The town of Monroe, North Carolina entered into an agreement with the town of Midland to facilitate the acquisition of land for the construction of the new pipeline by acquiring the rights of way to local land required for the installation of the pipeline. Per the agreement, Midland had the option to tap the pipeline at discounted rate. Midland then exercised its eminent domain authority to condemn the need
As previously stated, Midland's installation of the pipeline, and its potential to provide natural gas service was likely to spur growth, as well as provide the town with an advantage in attracting new industries making these opportunities for the public benefit of the citizens of Midland. Therefore, in this case, the court concluded that Midland’s condemnations were not undertaken to provide a solely private benefit. In addition, the Court of Appeals of North Carolina held that Midland lawfully exercised its eminent domain power, thus, the ruling of the trial court granting summary judgment in favor of Midland was affirmed (Town of Midland v Morris,