Ats Ford Drive Investment, LLC v. United States

136 F.4th 1066
CourtCourt of Appeals for the Federal Circuit
DecidedMay 5, 2025
Docket23-1760
StatusPublished
Cited by1 cases

This text of 136 F.4th 1066 (Ats Ford Drive Investment, LLC v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ats Ford Drive Investment, LLC v. United States, 136 F.4th 1066 (Fed. Cir. 2025).

Opinion

Case: 23-1760 Document: 59 Page: 1 Filed: 05/05/2025

United States Court of Appeals for the Federal Circuit ______________________

ATS FORD DRIVE INVESTMENT, LLC, ET AL., Plaintiff

GODBY PROPERTIES, LP, REZIN FAMILY INVESTMENTS LLS, C/O GREENSTONE ASSET MANAGEMENT, BRIAN L. SCHOONVELD, GRACE L. SCHOONVELD, CO-TRUSTEES OF THE BRIAN L. SCHOONVELD AND GRACE L. SCHOONVELD REVOCABLE TRUST UTA 6/13/00, MAYS PROPERTY MANAGEMENT COMPANY LLP, JULIA ANN MCKIM, KIMBERLY A. JONES, CAESAR B. DOYLE, VASCO WALTON, BRINKLEY INVESTMENT GROUP, LLC, Plaintiffs-Appellants

v.

UNITED STATES, Defendant-Appellee ______________________

2023-1760 ______________________

Appeal from the United States Court of Federal Claims in No. 1:19-cv-00471-MMS, Senior Judge Margaret M. Sweeney. ______________________

Decided: May 5, 2025 ______________________ Case: 23-1760 Document: 59 Page: 2 Filed: 05/05/2025

MARK F. HEARNE, II, True North Law Group, LLC, St. Louis, MO, argued for plaintiffs-appellants. Also repre- sented by STEPHEN S. DAVIS.

DAVID S. FRANKEL, Environment and Natural Re- sources Division, United States Department of Justice, Boston, MA, argued for defendant-appellee. Also repre- sented by TODD KIM, Washington, DC. ______________________

Before LOURIE, STOLL, and CUNNINGHAM, Circuit Judges. CUNNINGHAM, Circuit Judge. This appeal originates from a rails-to-trails conversion in Indiana. Plaintiffs-Appellants are a group of landown- ers 1 who own land adjacent to, and purportedly underlying, the former Indiana Nickel Plate Line. Plaintiffs sued the United States in the Court of Federal Claims seeking com- pensation for an alleged taking arising from the operation of the National Trails System Act Amendments of 1983 (“Trails Act”), 16 U.S.C. § 1247(d). Specifically, Plaintiffs alleged that the issuance of Notices of Interim Trail Use (“NITUs”) constituted a Fifth Amendment taking. The Court of Federal Claims rejected Plaintiffs’ request to cer- tify a question to the Indiana Supreme Court, held that Plaintiffs lacked a compensable property interest, and granted summary judgment to the United States. See ATS Ford Drive Invest., LLC v. United States, 156 Fed. Cl. 397, 406, 418–19 (2021) (“Decision”).2 We affirm.

1 Several other Indiana landowners with similar claims, joined by two professors of property law, filed an amicus brief supporting Plaintiffs-Appellants. 2 Plaintiffs-Appellants were joined by other plain- tiffs at the Court of Federal Claims. The Court of Federal Case: 23-1760 Document: 59 Page: 3 Filed: 05/05/2025

ATS FORD DRIVE INVESTMENT, LLC v. US 3

I. BACKGROUND In 1846, the Indiana General Assembly chartered the Peru and Indianapolis Railroad Company and tasked it with building a railroad. Decision at 400; 1846 Ind. Acts ch. CLXXXVI (the “Charter”). Sections 15 and 16 of the Charter authorized the Peru and Indianapolis Railroad Company to acquire land either voluntarily through “relin- quishment of so much of the land as may be necessary for the construction and location of the road” or by eminent do- main. Charter §§ 15, 16. Section 19 of the Charter pro- vides that when the corporation “shall have procured the right of way, as hereinbefore provided, they shall be seized, in fee simple, of the right to such land, and they shall have sole use and occupancy of the same.” Id. § 19 (emphasis added). By 1853, the Peru and Indianapolis Railroad Company had persuaded Appellants’ predecessors-in-interest to sign written releases (the “Releases”) relinquishing strips of land on which to build the railroad. Decision at 401; see J.A. 217–304. Each of the Releases contains materially identical language stating that the landowner agrees to “release and relinquish to the Peru and Indianapolis Rail- road Company the right of way for so much of said road as

Claims divided the plaintiffs into three groups based on the different liability issues and threshold title issues faced. Decision at 403. The Court of Federal Claims decision in 2021 addresses the summary judgment motions for one of these groups. Id. at 404–05. The Court of Federal Claims later issued an opinion addressing the summary judgment motions for another group of plaintiffs that applied this earlier decision for a subgroup of plaintiffs. See ATS Ford Drive Investment, LLC v. United States, 159 Fed. Cl. 132, 155 (2022) (citing Decision at 414–15). Case: 23-1760 Document: 59 Page: 4 Filed: 05/05/2025

may pass through or cut”3 a described parcel. Decision at 401–03; see, e.g., J.A. 218, 221–22, 235, 239, 244, 249, 254, 259, 263, 268, 272, 275, 281, 285, 289, 293, 298, 302; see also J.A. 226, 230 (containing immaterial wording dif- ferences); cf. Charter § 15 (authorizing the Peru and Indi- anapolis Railroad Company to acquire land through “relinquishment of so much of the land as may be necessary for the construction and location of the road”). A railroad line, now known as the Nickel Plate Line, was constructed on the relinquished land. Decision at 403; J.A. 371–75. The ownership of the railroad line subse- quently passed through several successors until Hamilton County and the cities of Fishers and Noblesville became joint owners of the line. Decision at 403; see, e.g., J.A. 104–05. In 2017, the municipalities informed the Surface Transportation Board that they wanted to invoke the Trails Act to convert the railroad line into a recreational trail. Decision at 403; J.A. 103, 106, 107. In 2018, the mu- nicipalities formally requested that the Surface Transpor- tation Board issue NITUs for the portions of the railroad line passing through their municipalities. Decision at 403; J.A. 125–26; J.A. 139; J.A. 373–75. The Surface Transpor- tation Board issued the NITUs on December 21, 2018, and the municipalities became trail sponsors in 2019. Decision at 403; J.A. 139–41; J.A. 371. In 2020, Plaintiffs sued the United States in the Court of Federal Claims, alleging that the trail corridor conver- sion constituted a compensable taking under the Fifth Amendment. Decision at 400; see J.A. 73–100. The parties each moved for partial summary judgment. Decision at 403; J.A. 170; J.A. 314. The United States contended

3 Capitalization, spacing, and punctuation differ among the Releases. Case: 23-1760 Document: 59 Page: 5 Filed: 05/05/2025

ATS FORD DRIVE INVESTMENT, LLC v. US 5

that, under settled Indiana law, the Releases conveyed the land underlying the Nickel Plate Line in fee simple and that Plaintiffs therefore lacked any property interest in the land they alleged was taken. Decision at 407; J.A. 322–26. While Plaintiffs argued that the Releases conveyed only an easement, they also sought certification of the question of the scope of the Releases’ conveyance to the Indiana Su- preme Court. Decision at 407, 418; J.A. 177; J.A. 215. The Court of Federal Claims agreed with the United States and granted summary judgment on the claims now on appeal. Decision at 406–19. It held that the Indiana Supreme Court’s decisions in Newcastle & Richmond Rail- road Co. v. Peru & Indianapolis Railroad Co., 3 Ind. 464 (1852) (“Newcastle”) and Indianapolis, Peru, & Chicago Railway Co. v. Rayl, 69 Ind. 424 (1880) (“Rayl”) are “bind- ing precedent” that conclusively establish that releases au- thorized by and executed under the Peru and Indianapolis Railroad Company’s legislative charter “conveyed fee sim- ple estates.” Decision at 412; see also Decision at 412–15 (finding that the relevant portions of Newcastle and Rayl were not dicta and that the Indiana Supreme Court has not abrogated Newcastle and Rayl).

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Bluebook (online)
136 F.4th 1066, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ats-ford-drive-investment-llc-v-united-states-cafc-2025.