Behrens v. United States

59 F.4th 1339
Court of Appeals for the Federal Circuit·Decided February 13, 2023·No. 22-1277·Published·Cited by 2 cases

Opinion

United States Court of Appeals for the Federal Circuit

DAVID H. BEHRENS, ARLINE M. BEHRENS, ET AL. Plaintiffs

MARK W. HEINTZ, HELEN M. HEINTZ, ET AL.

Plaintiffs-Appellants

v.

UNITED STATES, Defendant-Appellee

2022-1277

Appeal from the United States Court of Federal Claims in No. 1:15-cv-00421-PEC, Judge Patricia E. Campbell- Smith.

Decided: February 13, 2023

THOMAS SCOTT STEWART, Stewart Wald & McCulley, LLC, Kansas City, MO, argued for plaintiffs-appellants. Also represented by ELIZABETH MCCULLEY, REED RIPLEY.

JOHN LUTHER SMELTZER, Appellate Section, Environment & Natural Resources Division, United States Department of Justice, Washington, DC, argued for defendantappellee . Also represented by TODD KIM, ERIKA KRANZ, 2 BEHRENS v. US

WILLIAM B. LAZARUS.

MARK F. HEARNE, II, True North Law Group, LLC, St.

Louis, MO, for amicus curiae James W. Ely, Jr. Also represented by STEPHEN S. DAVIS.

MEGHAN S. LARGENT, Lewis Rice LLC, St. Louis MO, for amicus curiae Missouri Farm Bureau Federation. Also represented by MICHAEL ARMSTRONG, LINDSAY BRINTON.

Before DYK, TARANTO, and HUGHES, Circuit Judges.

DYK, Circuit Judge.

Appellants are property owners seeking compensation for an alleged taking pursuant to the National Trails System Act (“Trails Act”), Pub. L. No. 90-543, 82 Stat. 919 (1968) (codified as amended at 16 U.S.C. §§ 1241–51). The issuance of a Notice of Interim Trail Use (“NITU”) allowing interim trail use and railbanking constitutes a Fifth Amendment taking if the railroad had been granted an easement, interim trail use and railbanking were beyond the scope of the easement, and the NITU caused a delay in termination of the easement. The Court of Federal Claims (“Claims Court”) found that the property interests at issue were easements, but that interim trail use was within the scope of the easements. We hold that the Claims Court erred in interpreting Missouri law and in concluding that interim trail use was within the scope of the easements. We also hold that railbanking is not within the scope of the easements. There being no causation dispute, the NITU issuance constituted a taking. We reverse and remand.

BACKGROUND

I

When a railroad wishes to relinquish responsibility over a railroad corridor, it must seek permission to

BEHRENS v. US 3

abandon the corridor. 49 U.S.C. § 10903; see also id. § 10502 (authorizing exemptions). Under the Trails Act, before abandonment is consummated, other entities can intervene to railbank the corridor, that is, preserve it for future railroad use. 16 U.S.C. § 1247(d); see also 49 C.F.R. § 1152.29(a). The railbanking intervention process, as authorized by § 1247(d), allows a railroad to negotiate with the intervening entity, which would then assume financial and managerial responsibility for the corridor by operating it as a recreational trail. See Preseault v. Interstate Com. Comm’n, 494 U.S. 1, 6–7 (1990) (“Preseault I”).

Before the potential trail operator can begin negotiations with the railroad, it must file a railbanking petition. See 49 C.F.R. § 1152.29(a). The potential trail operator must state its “willingness to assume full responsibility for[ m]anaging the right-of-way; [a]ny legal liability arising out of the transfer or use of the right-of-way . . . ; and [t]he payment of any and all taxes . . . [on] the right-of-way.” Id. § 1152.29(a)(2) (subsection numbers omitted). The operator must also acknowledge that the land will remain “subject to possible future reconstruction and reactivation of the right-of-way for rail service.” Id. § 1152.29(a)(3).

If the railbanking petition meets [certain] criteria, and the railroad agrees to negotiate with the petitioner and . . . communicates [that agreement] to the [Surface Transportation Board (“STB”)] within ten days of the filing of the trail use petition, the STB will issue a [NITU]. This NITU permits the railroad to discontinue service, cancel tariffs, and salvage track and other equipment, “consistent with interim trail use and rail banking” without consummating an abandonment and the NITU extends indefinitely to permit interim trail use once an “agreement” is reached between the railroad and the trail operator.

4 BEHRENS v. US

Caldwell v. United States, 391 F.3d 1226, 1230 (Fed. Cir. 2004) (quoting 49 C.F.R. § 1152.29(d)(1)) (citing 49 C.F.R. § 1152.29(b)(2), (d)). The Trails Act authorizes the suspension of abandonment, providing “if such interim [trail] use is subject to restoration or reconstruction for railroad purposes , such use shall not be treated, for purposes of any law or rule of law, as an abandonment of the use of such rights- of-way for railroad purposes.” § 1247(d).

It is now well-settled that the issuance of a NITU under the Trails Act may result in a taking of property owned by the original grantor of the easement. The Supreme Court noted in Preseault I that:

[The] language [of § 1247(d)] gives rise to a takings question in the typical rails-to-trails case because many 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 applicable state law vary, frequently the easements provide that the property reverts to the abutting landowner upon abandonment of rail operations. State law generally governs the disposition of reversionary interests . . . . By deeming interim trail use to be like discontinuance rather than abandonment, Congress prevented property interests from reverting under state law[.]

Preseault I, 494 U.S. at 8 (citations omitted). In general, “[a] Fifth Amendment taking occurs if the original easement granted to the railroad under state property law is not broad enough to encompass a recreational trail.” Caldwell , 391 F.3d at 1229 (citations omitted). As we discussed in Preseault v. United States, if the “establishment [of a public recreational trail] [can]not be justified under the terms and within the scope of the existing easements[,] . . . [t]he taking of possession of . . . lands . . . for use as a public

BEHRENS v. US 5

trail [is] in effect a taking of a new easement for that new use, for which . . . landowners are entitled to compensation .” 100 F.3d 1525, 1550 (Fed. Cir. 1996) (“Preseault II”) (en banc) (plurality opinion). A taking effectuated by the NITU occurs at the time that, had there been no NITU, the easement would have terminated under state law. See Caquelin v. United States, 959 F.3d 1360, 1363, 1370–73 (Fed. Cir. 2020).

Over the past thirty years, following our decision in Preseault II, we have considered a variety of cases alleging Fifth Amendment takings in this rails-to-trails context. See, e.g., Hardy v. United States, 965 F.3d 1338 (Fed. Cir. 2020); Ladd v. United States, 630 F.3d 1015 (Fed. Cir. 2010); Hash v. United States, 403 F.3d 1308 (Fed. Cir. 2005); Toews v. United States, 376 F.3d 1371 (Fed. Cir. 2004). These cases depend on state law and the facts of the particular land grants.

II

This appeal concerns a 144.3-mile corridor (“Corridor”)

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