Ellamae Phillips Co. v. United States

77 Fed. Cl. 387, 2007 U.S. Claims LEXIS 213, 2007 WL 1991435
CourtUnited States Court of Federal Claims
DecidedJuly 3, 2007
DocketNo. 04-1544L
StatusPublished
Cited by5 cases

This text of 77 Fed. Cl. 387 (Ellamae Phillips Co. 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
Ellamae Phillips Co. v. United States, 77 Fed. Cl. 387, 2007 U.S. Claims LEXIS 213, 2007 WL 1991435 (uscfc 2007).

Opinion

OPINION

BASKIR, Judge.

This is a takings case challenging the conversion of a railroad right-of-way to a biking and hiking trail pursuant to Section 8(d) of the National Trails System Act (“Rails-to-Trails Act”) (16 U.S.C. § 1247(d)). The right-of-way was granted in 1886 across federal public land under the terms of the General Railroad Right of Way Act of 1875 (“1875 Act”) (43 U.S.C. §§ 934-939). The land traversed by the right-of-way was opened to homestead settlement in accordance with the Act of June 11,1906 (34 Stat. 233). The property in this litigation was granted in 1914 to Joseph Diemoz, Plaintiffs predecessor in title. The circumstances surrounding the creation of the right-of-way coincide with those of the “Category 1” plaintiffs in the Federal Circuit’s decision in Hash v. United States, 403 F.3d 1308 (Fed.Cir.2005). Indeed, this case was stayed while Hash was being reviewed because of the possibility that a Federal Circuit decision might completely moot this matter.

The case is before us on cross motions for summary judgment. After oral argument, held February 16,2007, we requested supplemental briefing from the Parties on the significance of the conclusion of the Federal Circuit’s decision regarding the “Category 1” landowners in Hash. Recent decisions by lower courts, including the Court of Federal Claims, have held that the Federal Circuit fully resolved the question of government takings liability in Category 1 cases. We agree. As a matter of stare decisis, we find that the easement across the Plaintiffs land was abandoned and that the conversion to public trail use constitutes a taking. The Defendant’s Motion for Summary Judgment is DENIED and the Plaintiffs Cross Motion is GRANTED.

Background

The facts of this case are straightforward and not in dispute. The Plaintiff is the Ella-mae Phillips Company, a Colorado Limited [389]*389Liability Partnership, consisting of three partners, all children of the late Ellamae Phillips. The Plaintiff owns a tract of land in Aspen, Colorado traversed by a railroad corridor known as the Aspen Branch Line. Consolidated Statement of Uncontroverted Facts (“CSUF”) 111.

The land in dispute was originally public land of the United States, part of the Sopris National Forest. CSUF H 5. To promote Westward expansion, Congress passed a number of statutes encouraging the construction of railroads, including the General Railroad Right-of-Way Act of 1875 (“1875 Act”) (43 U.S.C. §§ 934-939, repealed in part, Pub.L. 94-579, Title VII § 706(a), 90 Stat. 2793 (1976)). The 1875 Act granted 200 foot wide rights-of-way to railroad companies through the public lands of the United States, together with land for station buildings and rights to take building materials from adjacent land. 43 U.S.C. §§ 934-939.

In order to acquire a right-of-way, a railroad had to file a profile of each section of its road with the Secretary of the Interior and complete construction of the section within five years. 43 U.S.C. § 937. It was anticipated that the public lands underlying the rights-of-way would eventually be transferred to private parties. The 1875 Act provided that “all such lands over which such right of way shall pass shall be disposed of subject to such right of way.” Id. In sum, the 1875 Act granted to qualifying railroad companies a 200 foot wide passage through public land that would be superior to any private fee estates later created in the same land.

In 1886, the railroad corridor across what would become the Plaintiffs land was granted to the Grand Valley Railway Company under the terms of the 1875 Act. CSUF H 2. Construction of the Aspen Branch Line was completed in 1887. CSUF U 3. In 1910, the Department of Agriculture requested that certain land in the Sopris National Forest be opened to settlement in accordance with the Act of June 11, 1906 (34 Stat. 233). CSUF H 5. On June 1, 1914, Joseph Diemoz submitted an application for “Homestead Entry” with the Department of the Interior for a plot of land. CSUF H 6. The United States issued a patent to the land, which was traversed by the Aspen Branch Line, to Mr. Diemoz on December 21, 1923. CSUF 117. The Phillips family acquired the land from Mr. Diemoz sometime in the 1920s.

As railroads gave way to automobiles, many railroad corridors were abandoned. Congress passed several laws intended to preserve rail corridors for other transportation uses, culminating with the passage of the National Trails System Act Amendments of 1983, Pub.L. 98-11, 97 Stat. 48, to the National Trails System Act, Pub.L. 90-543, 82 Stat. 919 (codified, as amended, at 16 U.S.C. §§ 1241-1251) (“Rails-to-Trails Act”).

The Rails-to-Trails Act authorizes the Interstate Commerce Commission (“ICC”) to preserve unused railway rights-of-way for future use by allowing them to be “railbanked” and used as recreational trails. If a State, municipality or private group is willing to assume financial and managerial responsibility for the right-of-way, the railroad must transfer the right-of-way to them for trail use, rather than abandoning the right-of-way. 16 U.S.C. § 1247(d).

Congress asserted in the Rails-to-Trails Act that conversions to trail use that were subject to reactivation of rail service on the route did not constitute abandonment:

Consistent with the purposes of [the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C.A. § 801 et seq.) ], and in furtherance of the national policy to preserve established railroad rights-of-way for future reactivation of rail service, to protect rail transportation corridors, and to encourage energy efficient transportation use, in the case of interim use of any established railroad rights-of-way pursuant to donation, transfer, lease, sale, or otherwise in a manner consistent with this chapter, if such interim use is subject to restoration or reconstruction for railroad purposes, such interim use shall not be treated, for purposes of any law or rule of law, as an abandonment of the use of such rights-of-way for railroad purposes.

Id. (emphasis added).

The railroad right-of-way at issue in this case changed hands several times through [390]*390acquisitions and mergers. Rail operations on the portion of the line crossing the Phillips property appear to have stopped some time during the 1980s. By 1998, the Roaring Fork Railroad Holding Authority (“RFRHA”) owned and operated the right-of-way. CSUF 119. RFRHA is a Colorado inter-governmental entity subject to the jurisdiction of the federal Surface Transportation Board (“STB”), which replaced the ICC as the regulatory body in charge of railroads.

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Related

Ellamae Phillips Co. v. United States
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Ellamae Phillips Co. v. United States
564 F.3d 1367 (Federal Circuit, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
77 Fed. Cl. 387, 2007 U.S. Claims LEXIS 213, 2007 WL 1991435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ellamae-phillips-co-v-united-states-uscfc-2007.