Bright v. United States

603 F.3d 1273, 40 Envtl. L. Rep. (Envtl. Law Inst.) 20134, 2010 U.S. App. LEXIS 9063, 2010 WL 1740825
CourtCourt of Appeals for the Federal Circuit
DecidedMay 3, 2010
Docket2009-5048
StatusPublished
Cited by62 cases

This text of 603 F.3d 1273 (Bright 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.

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Bright v. United States, 603 F.3d 1273, 40 Envtl. L. Rep. (Envtl. Law Inst.) 20134, 2010 U.S. App. LEXIS 9063, 2010 WL 1740825 (Fed. Cir. 2010).

Opinion

SCHALL, Circuit Judge.

Plaintiffs-Appellants (“Appellants”) are putative members of a class of landowners seeking compensation under the Fifth Amendment pursuant to the Tucker Act, 28 U.S.C. § 1491(a)(1). They seek compensation for the alleged taking of their respective property interests under the National Trail Systems Act, 16 U.S.C. §§ 1241-1251 (the “Trails Act”). The United States Court of Federal Claims dismissed Appellants’ second amended complaint as to all named plaintiffs other than Earleen Fauvergue, for lack of subject matter jurisdiction. Fauvergue v. United States, 86 Fed.Cl. 82 (2009), and erratum (changing “tenets” to “tenet” on page 16) (filed Mar. 18, 2009) (together, “Dismissal Order”). The court did so on the ground that although Ms. Fauvergue filed a class action complaint and sought class certification prior to expiration of the six-year limitations period prescribed by 28 U.S.C. § 2501, none of the twenty other putative class members opted in to the suit as named party plaintiffs prior to expiration of the period.

For the reasons set forth below, we hold that when a class action complaint is filed in the Court of Federal Claims and class certification is sought prior to expiration of the section 2501 limitations period, the limitations period is tolled. The limitations period is tolled during the period the court allows potential class members to opt in to the class. We therefore reverse the judgment of the Court of Federal Claims dismissing Appellants’ second amended complaint and remand the case to the court for proceedings on the merits of Appellants’ taking claims.

*1275 BACKGROUND

I.

Appellants’ taking claims arose under the Trails Act. The Trails Act sets out a statutory scheme pursuant to which unused railroad lines can be converted into designated trails for recreational uses. See Preseault v. Interstate Commerce Comm’n, 494 U.S. 1, 5, 110 S.Ct. 914, 108 L.Ed.2d 1 (1990) (stating that the purpose of the Trails Act is to preserve shrinking rail trackage by converting unused railroad rights-of-way into recreational trails). We explained the operation of the Trails Act in Caldwell v. United States, 391 F.3d 1226 (Fed.Cir.2004).

The Surface Transportation Board (“STB”) is charged with regulating the construction, operation, and abandonment of most railroad lines in the United States. Id. at 1228. When a railroad seeks to abandon a railroad right of way within the jurisdiction of the STB, it must either (1) file a standard abandonment application or (2) seek an exemption from filing such an application. Id. If the STB approves a standard abandonment application or grants an exemption, and the railroad ceases operation over the line, the STB relinquishes jurisdiction over the abandoned railroad right of way and state law reversionary property interests, if any, take effect. Id. at 1228-29.

Through a process known as “rail-banking,” the Trails Act provides an alternative to abandoning a railroad right of way. Id. at 1229. The Trails Act allows a railroad to negotiate with a state, municipality, or private group (the “trail operator”) to assume financial responsibility for operating the railroad right of way as a recreational trail. Id. If the railroad and the trail operator are willing to negotiate a trail use agreement, the STB stays the abandonment process and issues a notice allowing the railroad right-of-way to be “rail-banked.” Id. The effect of this notice, if the railroad and prospective trail operator reach an agreement, is that the STB retains jurisdiction for possible future railroad use and the abandonment of the corridor is blocked, even though the conditions for abandonment are otherwise met. Id. Section 8(d) of the Trails Act states: “[S]uch interim use [for trails] shall not be treated, for purposes of any law or rule, as an abandonment of the use of such rights-of-way for railroad purposes.” 16 U.S.C. § 1247(d). What this means is that the Trails Act prevents the operation of state laws that would otherwise come into effect upon abandonment, specifically, property laws that would “result in extinguishment of easements for railroad purposes and reversion of rights of way to abutting landowners.” Rail Abandonments-Use of Rights-of-Way as Trails, Ex Parte No. 274 (Sub-No. 13), 2 I.C.C.2d 591, 1986 WL 68617 (1986). 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.

The typical railbanking process begins when a railroad files with the STB an abandonment application or, as in this case, a request for an exemption. Id. at 1230. If a request for an exemption is filed and the request is approved, the STB publishes a Notice of Exemption in the Federal Register. Id. A potential trail operator then may file a railbanking petition pursuant to regulations promulgated by the STB. Id. If the petition meets regulatory criteria, and the railroad agrees to negotiate with the potential trail operator, the STB issues a Notice of Interim Trail Use or Abandonment (“NITU”) to the railroad and to the potential trail operator for the portion of the right-of-way to be covered by the agreement. Id., citing 49 C.F.R. §§ 1152.29(b)(2) and (d). The NITU allows the rail carrier to discontinue service and salvage track and other equip *1276 ment without an abandonment taking place. Id. At the same time, the NITU extends indefinitely to permit interim trail use once an agreement is reached between the railroad and the trail operator. Id.

II.

The facts pertinent to this case are not in dispute. Appellants are landowners who allege that the conversion of a railroad line into a public hiking trail under the Trails Act resulted in a Fifth Amendment taking of their reversionary property interests. The railroad line at issue ran 28.25 miles between Columbus, in Cherokee County, Kansas, and Carthage, in Jasper County, Missouri. The line consisted of a 100-foot-plus wide strip of land that was originally secured by the Memphis Carthage & Northwestern Railroad Company (the “MCNRC”) in 1876. The MCNRC retained the line until 1980, when it transferred it to the St. Louis and San Francisco Railroad Company. Eventually, following a series of mergers, in 1995 that company became the Burlington Northern and Santa Fe Railway, Company (the “BNSF”).

On May 23, 2002, The STB published a Notice of Exemption filed by the BNSF.

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603 F.3d 1273, 40 Envtl. L. Rep. (Envtl. Law Inst.) 20134, 2010 U.S. App. LEXIS 9063, 2010 WL 1740825, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bright-v-united-states-cafc-2010.