Reading Area Water Authority v. Schuylkill River Greenway Association

Fortune Development, LP (Fortune) owned land adjacent to land owned by the Schuylkill River Greenway Association (Greenway) (defendant). Fortune sought to construct a residential development. To provide access to sanitary-sewer and stormwater-sewer facilities, Fortune needed to construct a sewer main and stormwater pipe that would run through Greenway’s property. The Reading Area Water Authority (the water authority) (plaintiff) supported Fortune’s plan for the development. The water authority attempted to purchase an easement for utility lines to provide water, sewer, and drainage services to Fortune’s development. However, negotiations with Greenway failed. Subsequently, the water authority adopted a resolution that authorized the use of its eminent-domain powers to condemn a portion of Greenway’s land for a utility easement. The utility easement would include a water easement for a water main owned and operated by the water authority to supply Fortune’s development with water and would include a privately owned and maintained drainage easement for a sewer main and stormwater pipe. The drainage easement was to be located next to the water easement. The drainage easement would be solely for the purpose of servicing Fortune’s development. The water authority commenced a taking proceeding in the trial court. The water authority asserted that the public interest was served by ensuring homes had access to running water and a sewer line. Greenway objected to the taking of its property, alleging that it violated the Property Rights Protection Act (property-rights act) because its property was being taken for the benefit of Fortune, a private enterprise. The trial court sustained Greenway’s objections and dismissed the taking complaint. The water authority appealed, and the appellate court reversed the trial court’s judgment. Greenway appealed.