Buford v. United States

103 Fed. Cl. 522, 2012 U.S. Claims LEXIS 49, 2012 WL 401607
CourtUnited States Court of Federal Claims
DecidedFebruary 7, 2012
DocketNo. 09-121-L
StatusPublished
Cited by1 cases

This text of 103 Fed. Cl. 522 (Buford 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
Buford v. United States, 103 Fed. Cl. 522, 2012 U.S. Claims LEXIS 49, 2012 WL 401607 (uscfc 2012).

Opinion

OPINION and ORDER

SMITH, Senior Judge:

Pending before the Court are the Parties’ Cross-Motions for Summary Judgment in a “rails-to-trails” case. Plaintiffs include 15 Mississippi propei'ty owners who allege a Fifth Amendment taking of their properties, which were subject to a raih’oad right-of-way in Warren County, Mississippi.

Pursuant to a Petition for Exemption to abandon its rail line, the Surface Transportation Board allowed Kansas City Southern Railroad to enter into an agreement with the City of Vicksburg to convert the railroad line into a recreational trail. Plaintiffs argue that the Railroad only acquired an easement from two deeds and by adverse possession. In addition, Plaintiffs argue that the Railroad’s easement was limited to railroad purposes, and a recreational trail is beyond its scope. As a result, Plaintiffs argue that by permitting the conversion of the right-of-way to a trail, their reversionary interest in the land was taken and they are entitled to just compensation.

On the other hand, the Government argues that is entitled to Summary Judgment on [525]*525liability for four reasons. First, the Government argues that the Railroad held fee simple title in the subject right-of-way. Second, the Government argues that Plaintiffs fail to point to sufficient evidence to demonstrate that they own property abutting segments of the Railroad right-of-way. Third, the Government contends that seven Plaintiffs do not own land abutting the right-of-way because a road, dedicated by plat, separates their properties from the right-of-way. Lastly, the Government argues that railbanking and trail use are within the scope of the Railroad’s easement.

For the reasons stated below, the Court finds that the conversion of the Railroad right-of-way to a recreational trail amounted to a taking of Plaintiffs’ property under the Fifth Amendment. As will be discussed, Plaintiffs’ Motion for Summary Judgment on liability is GRANTED, and the Government’s Cross-Motion is DENIED.

I. The Trails Act and its Implementation

The Trails Act was implemented to preserve unused railroad right-of-ways by converting them into recreational trails. Barclay v. United States, 443 F.3d 1368, 1371 (Fed.Cir.2006). Nevertheless, a Plaintiff can assert a Fifth Amendment takings claim “when government action destroys state-defined property rights by converting a railway easement to a recreational trail, if trail use is outside the scope of the original railway easement.” Ladd v. United States, 630 F.3d 1015, 1019 (Fed.Cir.2010).

Stemming from the Interstate Commerce Act of 1887, as revised and amended, the Transportation Act of 1920 (41 Stat. 477-78), and subsequent statutes, the Surface Transportation Board (“STB”) is charged with regulating the construction, operation, and abandonment of railroad lines in the United States. Chic. & N.W. Transp. Co. v. Kalo Brick & Tile Co., 450 U.S. 311, 311-12, 101 S.Ct. 1124, 67 L.Ed.2d 258 (1981); Caldwell v. United States, 391 F.3d 1226, 1228 (Fed.Cir.2004). The STB must grant a railroad approval to discontinue or abandon a railroad corridor. Nat’l Ass’n of Reversionary Prop. Owners (“NARPO”) v. STB, 158 F.3d 135, 137 (D.C.Cir.1998).

A railroad may terminate active rail service in one of three ways. First, a railroad may apply to discontinue service. Preseault v. ICC, 494 U.S. 1, 6 n. 3,110 S.Ct. 914, 108 L.Ed.2d 1 (1990). Second, a railroad may seek to abandon the right-of-way. Hayfield N. R.R. v. Chic. & N.W. Transp. Co., 467 U.S. 622, 633, 104 S.Ct. 2610, 81 L.Ed.2d 527 (1984). As in this ease, the third option for terminating railroad service is “railbanking.” While railbanking is a form of discontinuance, the right-of-way is said to be “ ‘banked’ until such time as railroad service is restored.” Caldwell v. United States, 57 Fed. Cl. 193, 194 (2003), aff'd, 391 F.3d 1226 (Fed.Cir.2004). Unlike standard discontinuance, railbanking allows a third party to accept full responsibility of the railroad corridor and allows interim trial use until active rail service is restored.

Thus, to initiate abandonment, the railroad must file an Application or a Notice of Exemption. Under the Trails Act, rail-banking provides an alternative to abandonment. After the Application or Notice of Exemption is filed, a state, municipality, or private group can submit a proposal for converting the railroad into a trail. Barclay v. United States, 443 F.3d 1368, 1376 (Fed.Cir.2006). The STB’s regulation requires that the proposal include a statement of willingness to assume responsibility for the right-of-way, and an acknowledgment that interim trail use is subject to the “possible future reconstruction and reactivation of the right-of-way for rail service.” 49 C.F.R. § 1152.29(a)(l)-(3).

If the railroad and the prospective railroad operator agree to negotiate a trail use agreement, the STB “stays the abandonment process and issues a notice allowing the railroad right-of-way to be ‘railbanked.’ ” Caldwell, 391 F.3d 1226, 1229; Citizens Against Rails-to-Trails v. STB, 267 F.3d 1144, 1150-53 (D.C.Cir.2001). As was done in this ease, if a railbanking and interim trail use agreement is reached, the Notice of Interim Trail Use (“NITU”) automatically authorizes the trail use, and “the STB retains [526]*526jurisdiction for possible future railroad use.” Caldwell, 391 F.3d 1226, 1230. If a trail use agreement is not reached, the NITU expires 180 days after its issuance. 49 C.F.R. § 1152.29(d)(1).

In this case, the event that is alleged to be a taking is the issuance of the NITU. This is because it is the only government action in the railbanking process that prevents abandonment of the railroad and restricts the vesting of state law reversionary interests. Caldwell, 391 F.3d at 1235. Consequently, this is the basis of Plaintiffs’ Fifth Amendment takings claim.

II. Factual Background1

A. The Property

This case involves portions of a 4.25-mile railroad right-of-way in Warren County, Mississippi acquired from 15 landowners through two deeds and by adverse possession2, dating back to the 1870s.3 The railroad line (“Line”) on the subject right-of-way was referred to as the Vicksburg Industrial Lead, South Redwood Branch, or Redwood Branch.

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103 Fed. Cl. 522, 2012 U.S. Claims LEXIS 49, 2012 WL 401607, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buford-v-united-states-uscfc-2012.