June 2009, Pipeline Case won by Siegel

06.16.2009 7:07 pm

Appeals courts sides with St. Peters homeowners in pipeline case

By: Shane Anthony

St. Louis Post-Dispatch

Michael and Kimberly Crossman bought a house in St. Peters in 2003 with big dreams for the back yard. They wanted to build a fence, extend their deck, add a pool, plant a garden and build a batting cage for their kids.

Then, not long after they moved in, Explorer Pipeline came through the Shadow Creek subdivision to mark its underground petroleum pipeline. Turns out the pipeline crossed the Crossmans’ property. Their back yard actually had three separate easeements for pipelines.

Explorer  tore out nine trees and told the homeowners their work shed probably would have to be removed.

The Crossmans filed suit against Peter and Sharon Yacubovich, who had sold them the house. They also sued Investors Title Insurance Corporation, Lawyers Title Insurance Corporation and Topos Surveying and Engineering Corporation. The Crossmans alleged that no one had told them about the pipeline.

Resolution of the suit might require a lot more arguing, but an appellate court sided with the Crossmans in an opinion released today that deals with the Crossmans’ title insurance company.

The Eastern District Court of Appeals reversed a summary judgment by Circuit Judge Lucy Rauch. Appellate Judge Lawrence E. Mooney’s opinion said the Crossmans’ title-insurance policy “does not clearly, precisely, and unambiguously except the petroleum-pipeline easements from coverage.” Judges Nannette A. Baker and Kurt S. Odenwald concurred.

Gary Siegel, who represents the Crossmans, was pleased with the ruling. “The facts just cry out for relief for the Crossmans,” he said. “They did nothing wrong.”

Claude Knight, who represents the Yacubovich family, said his clients did nothing wrong, either. “They personally didn’t believe there was that type of pipeline easement, a transportation easement,” he said. “It’s not hard to believe, since the Crossmans’ title company missed it, and they’re the professionals.”

Nelson Mitten, who represents the title company, Investors, declined to comment on the ruling. His wife is co-counsel for the Crossmans.

Today’s ruling was focused, though, on Lawyers Title, the title insurance company that tried to say there was an exception for pipeline easements in the Crossmans’ policy.

Bill Sauerwein, who represents Lawyers Title, said his client believes the Crossmans knew or should have known about the easement by visiting the property.

“We believe that when we provided them with a policy saying we’re not covering what’s on the plat, that they did understand that that meant pipeline easements,” he said.

Lawyers Title could ask for the Easter District to re-hear the case or transfer it to the Supreme Court. The case also could wind up going to trial in St. Charles County.