Scan the code to view the full Texas Supreme Court decision on Hlavinka v. HSC Pipeline Partnership, LLC.

The Texas Constitution requires adequate compensation to a landowner for a taking of private property for public use. What evidence a court can consider to determine “adequate compensation” was a major point of contention in a case that made its way to the Texas Supreme Court. HSC Pipeline Partnership wanted to use a pipeline easement across the land of a private owner (the Hlavinkas), but the parties were miles apart on the value of the easement.

The trial court found that Terry Hlavinka’s testimony estimating the value of the land for the easement at $3.3 million—based on other sales the Hlavinkas made to pipeline companies—was inadmissible. Instead, the trial court agreed with the pipeline company’s valuation of only $132,293, which was derived from the land’s agricultural-use value.

The Hlavinkas appealed all the way to the Texas Supreme Court. With the support of a friend-of-the-court brief from Texas REALTORS®, the Texas Supreme Court agreed with the Hlavinkas and sent the case back to the trial court with the order to allow the property owner’s testimony to be considered. In October 2024, a Brazoria County jury awarded the Hlavinkas $2.7 million for the value of the easement.

The Texas REALTORS® Legal Fund provides financial support or other types of legal assistance for litigation issues that have statewide impact for the association’s members and real estate consumers. Learn more about the Legal Fund and find an application at rrmbaojie.com/legalfund.