Supreme Court weighs if pipeline firm must pay landowner fees
North Dakota landowners won a condemnation case but face $380,000 in costs, creating a split between state and federal rules.
By Ryan Carter ·
A dispute over who pays legal bills when the government takes private land reached the Supreme Court on Monday, with the outcome potentially changing how landowners pursue fair compensation across the country.
The case stems from a North Dakota pipeline project where a private company acting for the government offered owners low compensation. The owners won the multi-year legal battle, but North Dakota state law requires the company to cover their $380,000 in legal fees. Federal law argues the company does not have to pay those costs.
Bob McNamara argued before the justices that private companies wielding eminent domain power must respect state protections. He stated that when states try to protect private property owners, private companies have to respect those laws.
The Court showed doubt about the state law argument. Justice Ketanji Brown Jackson suggested that unless Congress specifies state law applies, federal law should govern all federal condemnation actions, regardless of the actor involved.
If the Court sides with the federal view, landowners may lose the incentive to challenge low offers. They would risk spending their own money on court fees with no guarantee of reimbursement. This creates a financial barrier for private citizens fighting government-backed projects.
