Chevy Chase Land Co. of Montgomery County v. United States

37 Fed. Cl. 545, 1997 U.S. Claims LEXIS 44, 1997 WL 112592
CourtUnited States Court of Federal Claims
DecidedMarch 10, 1997
DocketNo. 92-248L
StatusPublished
Cited by27 cases

This text of 37 Fed. Cl. 545 (Chevy Chase Land Co. of Montgomery County 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
Chevy Chase Land Co. of Montgomery County v. United States, 37 Fed. Cl. 545, 1997 U.S. Claims LEXIS 44, 1997 WL 112592 (uscfc 1997).

Opinion

OPINION

MEROW, Judge.

In this Rails-to-Trails takings case, Plaintiff, the Chevy Chase Land Company (“CCLC” or “the land company”), moved for summary judgment against Defendant, the United States of America and Intervenor-defendant, Montgomery County, Maryland. Both Defendants have tendered cross-motions for summary judgment against Plaintiff, CCLC.

The Columbia Country Club (“the Club” or “CCC”) subsequently entered this action as Intervenor-plaintiff and filed a separate motion for summary judgment against all other parties, including Plaintiff, CCLC. Both Plaintiff, CCLC, and Defendant, the United States, countered the Club’s motion for summary judgment with cross-motions for summary judgment.

The Rails-to-Trails Conservancy (“the Conservancy”) tendered an amicus curiae brief in support of Defendants’ takings analysis.

Oral argument ensued.

Upon consideration, it is concluded that: (1) Both Defendants’ cross-motions for summary judgment against Plaintiff, CCLC, are granted, and Plaintiffs motion for summary judgment is denied; and (2) Columbia Country Club’s motion for summary judgment is denied; the cross-motion for summary judgment tendered by Plaintiff, CCLC, is dismissed for lack of jurisdiction; and Defendant’s cross-motion for summary judgment against the Club is granted.

I. BACKGROUND

A Introduction

Plaintiffs have alleged a taking pursuant to the Fifth Amendment of the Constitution1 resulting from actions taken pursuant to federal legislation known as the Rails-to-Trails Act (the “Act”),216 U.S.C. § 1247(d).

[552]*552The taking alleged involves a strip of land approximately one mile long, and 100-feet wide, spanning some 12 acres in Montgomery County, Maryland. The land company conveyed this parcel, termed a railroad “right-of-way,3” to the Metropolitan Southern Railroad (“MSRR”) by deed in 1911. MSRR operated a railroad on this right-of-way up through May 10,1985.

On April 9, 1986 application was made pursuant to Interstate Commerce Commission (“ICC”) regulations for authorization to abandon rail service on the line. See 49 CFR 1152.22. The ICC entered a decision on February 25, 1988 permitting abandonment on condition that the railroad maintain the right-of-way for a period of 180 days to enable the acquisition of the right-of-way for public use pursuant to the Rails-to-Trails Act. During this period Montgomery County came forward as a potential purchaser, seeking to use the land for a light-rail system as well as a hiker/biker path within the constraints of 16 U.S.C. § 1247(d), and to postpone abandonment of the railroad corridor. On December 14, 19884 the ICC approved the purchase and transfer of use and issued a Certificate of Interim Trail Use (“CITU”) pursuant to the Act. The right-of-way property was then conveyed to Montgomery County by quitclaim deed for consideration of $10 million.5 As a result of the ICC’s actions pursuant’to the Rails-to-Trails Act, ICC abandonment of the railroad right-of-way was delayed indefinitely.

B. ARGUMENTS

The land company initiated the instant takings action in 1992, asserting that it owns the right-of-way strip and that postponement of the railroad’s abandonment of the right-of-way obstructed its full fee simple absolute property interest in this strip. CCLC’s takings argument has three dependent components. First, CCLC contends that it had originally conveyed the parcel to MSRR as an easement for the purpose of operating a railroad, and that CCLC retained title to this strip in fee simple absolute during the time MSRR used it for railroad operations. Second, CCLC asserts that MSRR’s termination of railroad service caused the railroad easement to lapse and, as a result, a reversion occurred and CCLC now possesses unencumbered title. Third, the land company maintains that the ICC’s authorization of Montgomery County’s purchase of the right-of-way effected a Fifth Amendment taking of its property, because the federal regulatory sanction of the County’s use constitutes a physical and regulatory invasion and causes an expansion in scope of the original railroad easement.

Defendants, the United States and Montgomery County, assert that CCLC actually conveyed the right-of-way to MSRR in fee simple absolute. By doing so, they maintain, the land company fully relinquished its title and any interest it had in the land at issue back in 1911, the date of conveyance. As a result, CCLC had no interest in the land in 1988, when the CITU issued. Accepting this formulation, CCLC’s other arguments need not be considered. Defendants proceed to assert alternatively that even had the 1911 deed conveyed only an easement to MSRR, the easement never lapsed, because neither the railroad nor Montgomery County had abandoned it, as a matter of law. Defendants contend that even had the easement been abandoned, no Fifth Amendment taking has occurred because CCLC held no compen-sable expectancy to a reversion due to the highly regulated nature of the railroads.

On summary judgment, Intervenor-plain-tiff, the Columbia Country Club, asserts that it, too, has suffered a taking of its property within the right-of-way. The Club claims to have interests in a portion of the 100-foot wide strip extending some 1,686 feet and [553]*553totalling approximately 3.89 acres. The Club alleges that it used this property as part of its golf course. The Club asserts that it acquired fee simple absolute title to the majority of these 3.89 acres by adverse possession. The Club also contends that it has certain easements within the railroad corridor. The introduction of a hiker/biker trail, as well as a highly-trafficked light-rail system pursuant to the Rails-to-Trails Act, the Club maintains, will effect a taking of the property in which it has an interest within the right-of-way, as well as that within its surrounding golf club.

All other parties oppose the Club’s position, stating that the Club has acquired neither fee simple absolute, nor a lesser property interest of an easement in the strip, because the Club enjoyed permissive use. Even if the Club had a property interest in the strip, Plaintiff and Defendants assert that no taking may have occurred because the Club had no reason or right to expect that use of the railroad right-of-way would continue exactly as it existed in the early part of this century, when the Club obtained the land for its golf course.

C. Railroad Regulatory Framework

Prior to 1920, the Maryland legislature regulated all railroad transactions within the state. Regulatory oversight commenced with the railroad’s legislative charter or certificate of incorporation which proscribed the railroad’s authorized uses of its right-of-way. See Public Service Comm’n of Maryland v. Phila., B. & W.R. Co., 122 Md. 438, 89 A. 726 (1914) (hereinafter “PSC of Md.”); 1870 Md. Laws ch. 476 (requirement for legislative charter removed; incorporation permitted pursuant to provisions of act). Various legislation further limited railroads’ actions.

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Cite This Page — Counsel Stack

Bluebook (online)
37 Fed. Cl. 545, 1997 U.S. Claims LEXIS 44, 1997 WL 112592, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chevy-chase-land-co-of-montgomery-county-v-united-states-uscfc-1997.