January 19th, 2022
Mary v. QEP Energy Co.
Opinion Date: January 18, 2022
Judge: W. Eugene Davis
Areas of Law: Real Estate & Property Law
Plaintiffs filed suit after defendant installed two pipelines on their property partially outside the boundary established in the parties' servitude agreement. At issue in this appeal is whether, as a consequence of this encroachment, plaintiffs are entitled to disgorgement of all profits defendant earned from the gas that flowed through the pipelines. The Fifth Circuit affirmed the district court's grant of summary judgment in favor of defendants, concluding that the most plaintiffs could recover are the additional profits defendant earned as a direct result of the encroachment, as compared to the profits it would have earned if it had installed the pipelines entirely within the servitude. In this case, plaintiffs have no evidence that defendant earned any such additional profits, and thus the district court correctly determined that defendant was not responsible for disgorging its profits.
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