ANDRES v. United States

CourtDistrict Court, S.D. Indiana
DecidedJuly 14, 2025
Docket4:24-cv-00038
StatusUnknown

This text of ANDRES v. United States (ANDRES v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ANDRES v. United States, (S.D. Ind. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF INDIANA NEW ALBANY DIVISION

GREG ANDRES on behalf of themselves and ) other similarly situated parties, ) PAULA ANDRES on behalf of themselves and ) other similarly situated parties, ) ) Plaintiffs, ) ) v. ) No. 4:24-cv-00038-SEB-KMB ) UNITED STATES OF AMERICA, ) ) Defendant. )

ORDER DIRECTING FURTHER PROCEEDINGS Plaintiffs Greg and Paula Andres ("Plaintiffs") brought this putative class action lawsuit against Defendant the United States of America (the "Government"), seeking just compensation for the alleged Fifth Amendment taking of their private property for public use, pursuant to the National Trails Act System Act Amendments of 1983 (the "Trails Act"), 16 U.S.C. § 1241 et seq. Pending before the Court are Plaintiffs' Motion for Class Certifi- cation, dkt. 10, and Motion for Oral Argument, dkt. 60. Having reviewed the parties' respective briefs on class certification, the Court finds that it requires further evidence in order to resolve certain disputes that have arisen between the parties and to determine the propriety of certifying this lawsuit as a class action. Plain- tiffs are allowed an opportunity to supplement the evidentiary record in a manner that ad- dresses the deficiencies identified below. Thereafter, we shall set the class certification motion for oral argument, during which the legal and factual issues described herein can be addressed.

We provide the following overview of the legal, factual, and procedural background as we understand it to provide context to the areas of evidentiary deficiency as identified by the Court. BACKGROUND I. Legal Background

A. The Trails Act When a rail carrier intends to abandon or discontinue1 its railroad services, the Trails Act allows for the "unused railroad rights-of-way [to be] converted into recreational trails[,] notwithstanding whatever reversionary property interests may exist under state law." Preseault v. I.C.C., 494 U.S. 1, 4 (1990) ("Preseault II"). This "railbanking" scheme preserves inactive rail trackage for potential future rail service while permitting interim use

of the rail line as a public trail. Section 8(d) of the Trails Act provides, in relevant part, that a railway carrier seeking "to cease operations along a particular route may negotiate with a State, municipality, or private group that is prepared to assume financial and managerial responsibility for the right-of-way." Id. at 6–7 (citing 16 U.S.C. § 1247(d)). Upon applica- tion, the Surface Transportation Board (the "Board" or the "STB"), which oversees railway

1 The Interstate Commerce Act distinguishes between the "discontinuance" and the "abandonment" of a rail line. See 49 U.S.C. § 10903. Discontinuance, on one hand, "allows a railroad to cease operating a line for an indefinite period while preserving the rail corridor for possible reactivation of service in the future." Preseault II, 494 U.S. at 5 n.3. Abandonment, on the other hand, renders the rail line "no longer part of the national transportation system." Id. operations, see 49 U.S.C. §§ 10502, 10903, may issue a Notice of Interim Trail Use or Abandonment ("NITU") that transforms a rail line into a public trail. Preasault II, 494 U.S.

at 5–7. Typically, "railroads do not own their rights-of-way outright but rather hold them under easements or similar property interests. While the terms of these easements and ap- plicable state law vary, frequently the easements provide that the property reverts to the abutting landowner upon abandonment of rail operations." Id. at 8. "Where the railroad held an easement to the underlying property, the conversion of the right-of-way to a recre-

ational trail, and thus the implementation of a new easement, can form the basis for a phys- ical takings claim under the Fifth Amendment to the Constitution." Memmer v. United States, 50 F.4th 136, 139–40 (Fed. Cir. 2022) (citing Preseault v. United States, 100 F.3d 1525, 1550 (Fed. Cir. 1996) (en banc)). The taking itself "begins upon the issuance of the NITU, the only government action in the railbanking process that operates to prevent aban-

donment of the corridor and to preclude the vesting of state law reversionary interests in the right-of-way." Id. at 140 (emphasis in original) (citations omitted). B. The Little Tucker Act The Little Tucker Act states, in pertinent part, that "district courts shall have original jurisdiction, concurrent with the United States Court of Federal Claims, of . . . [a]ny other

civil action or claim against the United States, not exceeding $10,000 in amount, founded either upon the Constitution, or any Act of Congress . . . ." 28 U.S.C. § 1346(a)(2). In other words, the Little Tucker Act "unequivocally provides the Federal Government's consent to suit for certain money-damages claims." United States v. Bormes, 568 U.S. 6, 10 (2012). Such claims against the Government are subject to a six-year statute of limitations, 28 U.S.C. § 2401(a), and individual recovery may not exceed $10,000 in monetary damages.

As a point of contrast, the Tucker Act, 28 U.S.C. § 1491, the Little Tucker Act's statutory companion whose "scope . . . is otherwise the same," "assigns jurisdiction to the Court of Federal Claims regardless of monetary amount." Bormes, 568 U.S. at 10 n.2. In order to sustain a district court's jurisdiction under the Little Tucker Act, plaintiffs may waive their right to recover monetary damages in excess of $10,000. See Hardiman v. Lip- nic, 455 F. Supp. 3d 693, 697 n.4 (N.D. Ill. 2020).

II. Factual Averments Plaintiffs and putative class members own fee simple interests in land underlying and/or adjacent to a 62.3-mile segment of rail line that runs from Bedford to New Albany, Indiana, crossing through Clark, Floyd, Lawrence, Orange, and Washington Counties (hereinafter, the "Corridor"). In September 1987, following a series of name changes, con-

solidations, purchases, reorganizations, and mergers, the Corridor was acquired by CSX Transportation ("CSXT"), which retained an easement across Plaintiffs' parcels for railroad purposes. On December 18, 2017, CSXT petitioned the Board for authorization to abandon its railway operations along the Corridor. On February 28, 2018, the Board granted CSXT's

request and issued a NITU (hereinafter, the "2018 NITU"), pursuant to § 8(d) of the Trails Act, 16 U.S.C. § 1247(d). The 2018 NITU granted CSXT the right to negotiate a trail use agreement with the Indiana Trails Fund ("Indiana Trails") and the City of New Albany (the "City"). (CSXT and Indiana Trails apparently never did finalize an agreement.) In October 2022, the Board issued a second NITU that authorized CSXT to negotiate new trail use agreements with the City and Radius Indiana ("Radius"), another prospective trail sponsor.

In February 2023, CSXT sold and fully transferred its property rights in the Corridor to the City and Radius. III.

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