Biery v. United States

99 Fed. Cl. 565, 2011 U.S. Claims LEXIS 1033, 2011 WL 2279653
CourtUnited States Court of Federal Claims
DecidedJune 9, 2011
DocketNos. 07-693L, 07-675L
StatusPublished
Cited by11 cases

This text of 99 Fed. Cl. 565 (Biery v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Biery v. United States, 99 Fed. Cl. 565, 2011 U.S. Claims LEXIS 1033, 2011 WL 2279653 (uscfc 2011).

Opinion

OPINION

FIRESTONE, Judge.

The plaintiffs in these consolidated cases are fourteen Kansas landowners who claim to own the fee interests in land underlying two previously-operating sections of a railroad line.1 The plaintiffs claim that the defendant (“government”) effected a taking of the plaintiffs’ fee interest in the railroad corridor when the government approved the conversion of the subject railroad line to a recreational trail pursuant to the “railbanking” provision of the National Trails System Act Amendments of 1983, 16 U.S.C. § 1247(d) (“Trails Act”). The plaintiffs, whose fee interest was encumbered by the railroad right-of-way, claim that, but for the Trails Act, the railroad easements held by the Burlington Northern Santa Fe Railway (“BNSF”) over their fee land would have expired now that the easement is no longer being used for train travel. They argue that the government’s authorization of a recreational trail within the railroad corridor and continued control over the corridor for potential future rail activation has prevented reversion of the easements to the plaintiffs. The plaintiffs are now seeking just compensation pursuant to the Takings Clause of the Fifth Amendment to the United States Constitution for the alleged taking associated with the government’s authorization of railbanking and trail use under the Trails Act.

Pending before the court are the parties’ cross-motions for summary judgment as to whether there has been a taking of their property interests by virtue of the government’s authorization of railbanking pursuant to the Trails Act. Resolution of these motions requires the court to opine on the scope of the railroad easements under Kansas law.2 [568]*568For the reasons set forth below, the plaintiffs’ motions for summary judgment are GRANTED and the defendant’s cross-motions for summary judgment are DENIED.

I. BACKGROUND

A. The Trails Act

In this court’s recent decision in Macy Elevator, Inc. v. United States, 97 Fed.Cl. 708 (2011), the court summarized the general purposes and operation of the Trails Act as follows:

Congress enacted the Trails Act to address the national problem of a reduction in rail tracks. Preseault v. Interstate Commerce Comm’n, 494 U.S. 1, 5, 110 S.Ct. 914, 108 L.Ed.2d 1 (1990) (“Preseault I”). The Trails Act authorizes the Surface Transportation Board (“STB”)3 to preserve railroad corridors or rights-of-way not currently in use for train service for possible future rail use by converting those rights-of-way into recreational trails. Id. at 5-6, 110 S.Ct. 914; 16 U.S.C. § 1241 (2006). In essence, the Trails Act allows a railroad to relinquish responsibility for a rail line by transferring the corridor to an entity that will use it as a recreational trail. Although the corridor is not used as a railroad during the period of interim trail use, it remains intact for potential future use for rail service. This process is called “rail-banking.”

Macy Elevator, 97 Fed.Cl. at 711 (renumbered footnote in original). The court then explained that STB approval of railbanking and recreational trail use are authorized in connection with the STB’s abandonment approval authority. In particular, the court explained that in eases where a railroad and a trail provider reach an agreement over recreational trail use of the rail line, the STB will retain jurisdiction over the rail corridor and the corridor will be railbanked for possible future rail use. In such cases, the rail corridor will not be returned to the underlying fee owner:

Before a railroad corridor may be converted into a recreational trail, the railroad must either initiate abandonment proceedings with STB under 49 U.S.C. § 10903 (2006) (where the railroad has recently had operating train service) or seek an exemption from the ordinary abandonment procedures under 49 U.S.C. § 10502 (2006) (where the railroad has had no local rail [569]*569service for at least two years).4 Caldwell v. United States, 57 Fed.Cl. 193, 195 (2003) (“Caldwell I”), aff'd, 391 F.3d 1226 (Fed.Cir.2004) (“Caldwell II”). Under either procedure, abandonment of the rail line and right-of-way will not be approved by the STB if a qualified trail provider5 submits to the STB a request to use the right-of-way as a recreational trail. If the trail provider submits a statement of willingness to assume financial and legal responsibility to the STB and the railroad, the STB will, in the case of an operating railroad issue a Certificate of Interim Trail Use or Abandonment (“CITU”) which preserves the STB’s jurisdiction over the rail corridor while the parties negotiate an Interim Trail Use Agreement. See 49 C.F.R. § 1152.29(c) (2010). In cases involving the exemption procedure, such as the present case, the STB issues a Notice of Interim Trail Use or Abandonment (“NITU”), which also preserves the STB’s jurisdiction over the rail corridor, allows the railroad to discontinue operations and remove track and equipment, and affords the railroad and the trail provider 180 days to negotiate a railbanking and interim Trails Act Agreement. Caldwell II, 391 F.3d at 1229-30; Caldwell I, 57 Fed.Cl. at 195; 49 C.F.R. § 1152.29(d). During this period, the railroad will also negotiate an agreement for the transfer of the corridor to the trail operator, [footnote omitted] “If an agreement is reached, the NITU [or CITU] automatically authorizes the interim trail use. If the [STB] takes no further action, the trail sponsor then may assume management of the right-of-way, subject only to the right of a railroad to reassert control of the property for restoration of rail service.” Caldwell I, 57 Fed.Cl. at 195 (internal citations omitted); see also 49 C.F.R. § 1152.29(d)(2). If an agreement is not reached, the railroad will be allowed to abandon the line, at which time the STB’s jurisdiction over the right-of-way terminates.6

Id. (renumbered footnotes in original). If there is no agreement between the railroad and trail operator, the railroad may abandon the line and the STB will no longer have jurisdiction over the rail corridor.

B. Pankratz — Butler County, Kansas7

1. Railroad Corridor Acquisition

The property at issue in Pankratz v. United States, No.

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Cite This Page — Counsel Stack

Bluebook (online)
99 Fed. Cl. 565, 2011 U.S. Claims LEXIS 1033, 2011 WL 2279653, Counsel Stack Legal Research, https://law.counselstack.com/opinion/biery-v-united-states-uscfc-2011.