Brown v. United States

126 Fed. Cl. 571, 2016 U.S. Claims LEXIS 676, 2016 WL 3034065
United States Court of Federal Claims·Decided May 27, 2016·No. 15-1297C·Published·Cited by 8 cases

Opinion

Rails-to-Trails; Motion to Certify a Class Action; Failure to Satisfy All Requirements of RCFC 23; Joinder Not Impracticable; Wal-Mart Stores, Inc.

OPINION AND ORDER

SWEENEY, Judge

In this Rails-to-Trails case, plaintiffs own real property in Cleveland County, North Carolina, adjacent to a railroad right-of-way. They contend that the United States, by authorizing the conversion of the railroad right-of-way into a recreational trail pursuant to the National Trail Systems Act (“Trails Act”), took their property without paying just compensation in violation of the Fifth Amendment to the United States Constitution. Plaintiffs bring suit in this court on behalf of themselves and those similarly situated, and now move to certify the case as a class action. For the reasons set forth below, the court denies plaintiffs’ motion.

I. BACKGROUND

The Trails Act, as amended, provides for the preservation of “established railroad rights-of-way for future reactivation of rail service” by authorizing the interim use of such rights-of-way as recreational and historical trails. 1 16 U.S.C. § 1247 (2012). This process is referred to as “railbanking,” and is overseen by the Surface Transportation Board (“Board”), id., the federal agency with the exclusive jurisdiction to regulate “the construction, acquisition, operation, abandonment, or discontinuance” of most railroad lines in the United States, 49 U.S.C. § 10501(b) (2012).

Before railbanking can occur, the railroad company must seek to abandon its line, either by initiating abandonment proceedings *575 with the Board pursuant to 49 U.S.C. § 10903, or by requesting that the Board exempt it from such proceedings pursuant to 49 U.S.C. § 10502. While considering the railroad company’s abandonment application or exemption request, the Board will entertain protests and comments from interested third parties, including requests from interested third parties for the interim use of the railroad line as a trail pursuant to 16 U.S.C. § 1247(d). 49 C.F.R. §§ 1152.25, 1152.29(a) (2014).

If an interested third party submits a trail use request to the Board that satisfies the requirements of 16 U.S.C. § 1247(d), the Board makes the necessary findings pursuant to 49 U.S.C. § 10502(a), and the railroad company agrees to negotiate a trail use agreement, the Board will issue a Notice of Interim Trail Use or Abandonment (“NITU”). Id. § 1152.29(b), (d). The effect of the NITU is to “[p]ermit the railroad to discontinue service, cancel any applicable tariffs, and salvage track and materials, consistent with interim trail use and rail banking ...; and permit the railroad to fully abandon the line if no agreement is reached 180 days after the NITU is issued, subject to appropriate conditions_” Id. § 1152.29(d)(1). The Board will entertain requests to extend the 180-day deadline to enable further negotiations. If the railroad company and the interested third party execute a trail use agreement, then abandonment of the railroad line is stayed for the duration of the agreement. Id. § 1152.29(d); 16 U.S.C. § 1247(d). If no trail use agreement is executed, the railroad company is permitted to fully abandon the line. 49 C.F.R. § 1152.29(d). If the railroad company notifies the Board that it has fully abandoned the line, see id. § 1152.29(e)(2), the Board is divested of jurisdiction over the abandoned railroad line and “state law reversionary property interests, if any, take effect.” Caldwell v. United States, 391 F.3d 1226, 1228-29 (Fed.Cir.2004).

On August 4, 2015, the Board issued a NITU pertaining to four segments of a railroad right-of-way in North Carolina over which Norfolk Southern Railroad Company (“Norfolk Southern”) formerly operated its railroad. These four segments are situated between milepost SB 144.55 and milepost SB 154.59, between milepost SB 158.10 and milepost SB 160.00, between milepost SF 384.6 and milepost SF 407.4, and between milepost SB 144.55 and milepost SB 141.35.

Three days after the Board issued the NITU, four individuals — Otis Mull Meaeham, Montrose Meaeham Ballard, Charles Jr. Shivers, and Rhonda K. Shivers — filed suit in this court alleging that the NITU effected a taking under the Fifth Amendment for which they were not paid just compensation. The ease was captioned Meaeham v. United States, No. 15-843L. An amended complaint was filed the following month; several plaintiffs were added to the suit and the caption of the ease changed to Brooks v. United States, No. 15-843L. In November 2015, as publicized in an article appearing in the local newspaper, the attorney representing the plaintiffs in Brooks held two town hall meetings to explain the suit to potentially affected residents. A second article, published two days later, included the attorney’s website address for those who wanted additional information regarding the suit. Eventually, on February 9, 2016, a second amended complaint was filed in Brooks that named 151 plaintiffs.

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Brown v. United States, 126 Fed. Cl. 571, 2016 U.S. Claims LEXIS 676, 2016 WL 3034065 (uscfc 2016).

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