Calhan Chamber of Commerce v. Town of Calhan

166 P.3d 200, 2007 Colo. App. LEXIS 829, 2007 WL 1288488
CourtColorado Court of Appeals
DecidedMay 3, 2007
Docket05CA2035
StatusPublished
Cited by1 cases

This text of 166 P.3d 200 (Calhan Chamber of Commerce v. Town of Calhan) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Calhan Chamber of Commerce v. Town of Calhan, 166 P.3d 200, 2007 Colo. App. LEXIS 829, 2007 WL 1288488 (Colo. Ct. App. 2007).

Opinion

Opinion by

Judge ROMAN.

In this quiet title action, plaintiff, Calhan Chamber of Commerce, appeals the summary judgment in favor of defendants, Town of Calhan, Pikes Peak Cooperative Association, David Baysinger, and Pamela Baysinger (collectively the Town). We affirm.

The Chamber of Commerce filed a complaint seeking to quiet title and for declaratory judgment against the Town concerning the ownership of four noncontiguous parcels of land that were onee part of the Chicago, Rock Island, and Pacific Railroad Company (Rock Island) right-of-way.

The land was originally granted to Rock Island under the General Railroad Right of Way Act of 1875. On May 283, 1980, the Interstate Commerce Commission (ICC) recommended Rock Island's "total system discontinuance of services and abandonment" subject only to service continuity by other carriers at certain defined points not at issue here. On June 2, 1980, the federal district court entered an order that "the total systems abandonment of Rock Island's lines and *202 the discontinuance of all of its rail services and obligations as a common carrier [are] hereby confirmed and decreed" consistent with the ICC recommendations.

On May 29, 1984, the federal district court entered another order allowing the sale of the property at issue here by quitclaim deed to a third party. The Chamber of Commerce claims ownership of the property through subsequent conveyances originating from this quitclaim deed.

The Town claims ownership by operation of the Railroad Right of Way Abandonment Act, 48 U.S.C. § 912, which provides that after a court order decrees abandonment of a railroad grant, title to property located within a municipality automatically vests in that municipality. The other defendants were named in the Chamber of Commerce's complaint because they use the disputed property to access their adjacent property. However, they do not assert any ownership interest in the disputed property.

The Chamber of Commerce and the Town filed cross-motions for summary judgment. The trial court entered summary judgment in favor of the Town, concluding that the property "vested in the Town of Calhan in fee simple, to the exclusion of all other interests."

A trial court may enter summary judgment when no disputed issue of material fact exists and the moving party is entitled to judgment as a matter of law. We review summary judgments de novo. CRCP. b6(c); McIntyre v. Bd. of County Comm'rs, 86 P.3d 402, 406 (Colo.2004).

I.

The Chamber of Commerce contends the trial court erred in concluding that Rock Island had irrevocably abandoned the railroad line. We disagree.

As relevant here, § 912 provides:

Whenever public lands of the United States have been ... granted to any railroad company for use as a right of way for its railroad ... and use and occupancy of said lands for such purposes has ceased . whether by forfeiture or by abandonment by said railroad company declared or decreed by a court of competent jurisdiction ..., then and thereupon all right, title, interest, and estate of the United States in said lands shall ... be transferred to and vested in any person, firm, or corporation ... to which title of the United States may have been granted ..., except lands within a municipality[,] the title to which, upon forfeiture or abandonment, as herein provided, shall vest in such municipality ... and this by virtue of the patent thereto and without the necessity of any other or further conveyance or assurance of any kind or nature whatsoever....

Here, it is undisputed that (1) the Town is a municipality and holds a patent from the United States Land Office to the underlying fee simple estate; (2) the abandoned right-of-way is located within the Town's municipal boundaries; and (3) in 1980 the federal district court ordered "the total systems abandonment of Rock Island's lines and the discontinuance of all of its rail services and obligations as a common carrier" consistent with "the recommendations of the [ICC] pertaining to the transfer, sale or disposition of track and trackage rights contained" in the ICC report.

Therefore, by the express language of § 912, upon the federal district court's decree of abandonment in 1980, title to the land vested in the Town. See also City of Maroa v. Ill. Cent R.R., 229 Ill.App.3d 503, 170 Ill.Dec. 224, 592 N.E.2d 660 (1992); City of Buckley v. Burlington N.R.R., 106 Wash.2d 581, 723 P.2d 434, 437-38 (1986)(if the right-of-way runs through a municipality, the municipality takes the reversion regardless of whether it has title to the underlying fee). This automatic vesting of title occurs "without the necessity of any other or further conveyance or assurance of any kind or nature whatsoever." 48 U.S.C. § 912; see City of Buckley v. Burlington N. R.R., supra, 723 P.2d at 436 (§ 912 was enacted to dispose of the federal government's reversionary interests in the railroad rights-of-way).

Nevertheless, the Chamber of Commerce argues that the federal court's abandonment order merely contemplated a temporary abandonment of the railroad line pending *203 sale and that the order does not mention the possibility of reversion to the Town. However, nothing in the language of the ICC recommendations or the court order regarding abandonment indicates that abandonment was to be temporary or revocable.

Even if the Chamber of Commerce were correct that the court anticipated future orders regarding the property, we find no inconsistency between the federal court's 1980 order decreeing abandonment and its 1984 order authorizing the sale of the railroad line between two cities. In the 1984 order, the court authorized the bankruptcy trustee to sell miles of railroad line, of which only a small portion is located within the municipal boundaries of the Town, and therefore subject to reversion under § 912.

Because § 912 is self-executing and title automatically vested in the Town, we reject the Chamber of Commerce's argument that another railroad's later use of the railroad lines is de facto evidence of lack of abandonment. While use of the railroad lines may be relevant to determine whether abandonment has occurred by forfeiture, it does not negate the effect of the 1980 judicial decree of abandonment under § 912. See In re Chicago, Rock Island & Pac. R.R., 865 F.2d 807, 813 (7th Cir.1988)(use by other operators cannot prevent the reversion clause in § 912 from being triggered).

The Chamber of Commerce relies on Northern Pacific Railway v. Townsend, 190 U.S. 267, 23 S.Ct. 671, 47 L.Ed. 1044 (1908), for the proposition that the railroad's interest constituted a limited fee. However, the Supreme Court disavowed that holding in Great Northern Railway v.

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166 P.3d 200, 2007 Colo. App. LEXIS 829, 2007 WL 1288488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/calhan-chamber-of-commerce-v-town-of-calhan-coloctapp-2007.