Speculation Of Future Property Damage From Pipeline Leaks Not Enough For Missouri Plaintiffs

A group of Missouri plaintiffs brought a putative class action seeking recovery for alleged property damages incurred as a result of several defendants’ ownership, maintenance, and control of a pipeline.  The pipeline carried petroleum from 1952 to 1990.  In 1994, the pipeline was sold to another company.  As part of the sale, a document prepared by the selling company was created entitled “Products Spills for Assets Being Sold,” and which contained a list of remediated leaks for which the seller agreed to retain liability.  In discovery, the defendants also produced a number of “break and leak” reports and “maintenance” constituting reports on leaks within the pipeline and follow-up remediation records.  The plaintiffs’ purported class included any property owners adjacent to a leak listed on the “Products Spills for Assets Being Sold” in which corresponding “break and leak” or “maintenance” reports existed.

The U.S. District Court for the Eastern District of Missouri, however, granted summary judgment to the defendant companies on the grounds that the plaintiffs failed to present evidence of any substantial damages to their property.  The court explained, “Plaintiffs’ speculation that the property may be diminished in value in the event of a future sale or different use is not sufficient to withstand a summary judgment motion.”