SCOTUS to Rule on NGA Eminent Domain Attorney Fee Entitlement
Interstate natural gas pipeline operators and affected landowners must track the case because the ruling will determine whether state attorney fee rules apply to NGA eminent domain proceedings, altering project costs and compensation outcomes.
The Supreme Court granted certiorari in Hoffmann v. WBI Energy Transmission to resolve a circuit split over whether NGA section 7 requires pipeline companies exercising federal eminent domain authority to pay landowners’ attorney fees where state law permits such recovery. The Eighth Circuit held landowners were not entitled to $383,300 in fees, conflicting with four other appellate courts. The ruling will turn on whether the Court views NGA section 7 as delegating federal eminent domain power (per 2021’s PennEast decision, which would apply Fifth Amendment “just compensation” rules excluding fees) or leaving a gap to be filled by state law. Parties should monitor briefing and October 2026 Term arguments.