Courval v. United States

CourtUnited States Court of Federal Claims
DecidedOctober 10, 2018
Docket12-482
StatusPublished

This text of Courval v. United States (Courval 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
Courval v. United States, (uscfc 2018).

Opinion

In the United States Court of Federal Claims No. 12-482L (Filed: October 10, 2018) ) KENNETH COURVAL, et al., ) Rails-to-trails takings case; class action; For himself and As Representative of ) settlement; fairness hearing; RCFC 23(e) a Class of Similarly Situated Persons, ) ) Plaintiffs, ) ) v. ) ) UNITED STATES, ) ) Defendant. ) ) )

J. Robert Sears, Baker Sterchi Cowden & Rice, L.L.C., St. Louis, Missouri. With him on the proposed settlement was Steven M. Wald and Michael J. Smith, Stewart Wald & McCulley, LLC, St. Louis, Missouri.

Ragu-Jara Gregg, Trial Attorney, Law and Policy Section, Environment & Natural Resources Division, United States Department of Justice, Washington, D.C., for defendant. With him on the proposed settlement was Jeffrey H. Wood, Acting Assistant Attorney General, Environment & Natural Resources Division, United States Department of Justice, Washington, D.C.

OPINION AND ORDER

LETTOW, Senior Judge.

Pending before the court in this rails-to-trails class action is the parties’ proffered Settlement Agreement, which has been the subject of notice to class members and a fairness hearing regarding its terms. This Agreement represents the resolution of claims by a class comprised of 41 members that the federal government, acting under the National Trails System Act Amendments of 1983 (“Trails Act”), Pub. L. No. 98-11, § 208, 97 Stat. 42, 48 (codified at 16 U.S.C. § 1247(d)), took their property without just compensation in contravention of the Takings Clause of the Fifth Amendment of the United States Constitution. See Second Am. Compl. ¶ 2, ECF No. 16; Hr’g Tr. 4:8-22 (Sept. 28, 2018).1 The court previously granted the parties’ Joint Motion for Preliminary Approval of the Settlement and to Approve Notice to the Class Members Regarding Proposed Class Settlement and Request to Set Date for Public Hearing under RCFC 23(e) (“Joint Motion”) at 2, ECF No. 75, and authorized issuance of a notice of settlement to the class members, see Order of Aug. 14, 2018 (granting the Joint Motion

1 The date will be omitted from further citations to the transcript of the fairness hearing. and directing issuance of notice to class members) (“Order for Notice”), ECF No. 77. Following notice to the class and receipt of class members’ responses, a hearing on the fairness of the Settlement Agreement was held at the Charles A. Halleck Federal Building in Lafayette, Indiana on September 28, 2018. For the following reasons, the court approves the settlement negotiated by the parties.

BACKGROUND

A. The Takings Claim

This rails-to-trails case originally began in July 2012, when plaintiffs filed their first complaint with this court. See generally Compl. The complaint was based on the conversion of a railroad corridor in Howard County, Indiana to a recreational trail under the Trails Act, 16 U.S.C. § 1247(d). Second Am. Compl. ¶¶ 2-6. The land at issue spans 2.35 miles (not continuous) between mileposts 55.66 and 58.5 in Howard County (the “Railroad Line”). Id. ¶ 3. The Central Railroad Company of Indianapolis (“the Railroad”) previously held a right-of-way easement over the Railroad Line for railroad purposes. Joint Mot. at 2. On June 15, 2012, the Surface Transportation Board (“STB”) issued a Notice of Interim Trail Use (“NITU”) over the Railroad Line. Second Am. Compl. ¶ 20. The class members are 41 landowners who own 49 parcels of land burdened by the railroad easement and who allege they would have enjoyed exclusive right of physical ownership of the land at issue if not for the issuance of the NITU. Second Am. Compl. ¶¶ 21-22 & Ex. A. They allege a taking of their property by the United States government and pray for just compensation as relief. Second Am. Compl. ¶ 21-22. All of the land at issue is within the city limits of Kokomo, Indiana. See Second Am. Compl. Ex. A; Hr’g Tr. 7:20 to 8:4.2

The properties at issue are mostly residential in nature, but a handful are industrial, commercial, and agricultural. See Joint Mot. at 3. Members of the class allege they were fee simple owners of the properties at issue at the time of the taking and that, under Indiana law, “the scope of the railroad purpose easement[s] w[ere] exceeded when [the Railroad] ceased using the corridor for its railroad operations and transferred its interest in the corridor for railbanking and interim trail use under [the Trails Act].” Id. at 2. They seek compensation under the Takings Clause, the Trails Act, the Tucker Act, 28 U.S.C. § 1491(a), and the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. § 4654(c). Second Am. Compl. ¶ 2.

At the outset of this litigation, the plaintiffs asserted they brought the action “for themselves and as the Representatives of a Class of Similarly Situated Persons.” Joint Mot. at 2.

2 The City of Kokomo was named after a member of the Miami Tribe of Indians who was resident in that area of Indiana at the turn of the nineteenth century. A number of legends arose about Ma-ko-ko-mo, who may, or may not, have been a chief of the Miami. In all events, besides the city in Indiana, other places in the United States and elsewhere were named after the near-mythical person.

The erstwhile chief should not to be confused with the eponymous Kokomo made famous by the Beach Boys in 1988. But, much like the lyrics of their song implore, this litigation did “take it slow.”

2 They subsequently moved to certify the case as an opt-in class action pursuant to Rule 23 of the Rules of the Court of Federal Claims (“RCFC”). Second Am. Compl. ¶¶ 26-32. The government did not oppose the class motion and the class was certified on March 1, 2013. See Order Approving Plan for Notice to Class, ECF No. 12-2. Following two amendments to the Complaint, ECF Nos. 4, 16, the parties commenced discovery, and an appraiser was jointly retained by the parties3 to determine the values of the property at issue. Joint Mot. at 2; Joint Status Report (Jan. 20, 2015), ECF No. 27. 4 The appraiser had particular expertise in the valuation of residential properties, including easements, and possessed MAI credentials. Hr’g Tr. 5:18-22, 11:7-21. To organize the valuation process, the parties selected twelve representative properties for the appraiser to examine. See Joint Status Report (Feb. 22, 2016), ECF No. 38. The parties chose this approach due to the significant similarities in size and location between some of the properties. See Hr’g Tr. 6:4-10, 6:18-7:19. After delays, by the end of 2015, the parties were in possession of all twelve reports prepared by the joint appraiser. See Joint Status Report (Nov. 24, 2015), ECF No. 32. Following the receipt of these reports from the joint appraiser, the parties’ settlement discussions primarily focused on resolving “their respective questions and concerns regarding the joint appraiser’s work product.” Joint Status Report (Aug. 22, 2016), ECF No. 44.

These negotiations dragged on for more than two years due to perhaps one of the most bizarre aspects of this litigation – the case of the missing appraiser. After filing his report on the twelve representative properties, the joint appraiser vanished. See Joint Status Report (June 21, 2017), ECF No. 53; Hr’g Tr. 29:25-30:12. Despite significant efforts by both parties to locate the missing appraiser, he could not be found. Hr’g Tr. 29:25-30:23.

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