Ellamae Phillips Co. v. United States

99 Fed. Cl. 483, 2011 WL 2466201
CourtUnited States Court of Federal Claims
DecidedJune 21, 2011
DocketNo. 04-1544L
StatusPublished
Cited by12 cases

This text of 99 Fed. Cl. 483 (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, 99 Fed. Cl. 483, 2011 WL 2466201 (uscfc 2011).

Opinion

OPINION ON REMAND

BASKIR, Judge.

I. Introduction

This is a Rails-to-Trails ease. We previously entered judgment for the Plaintiff, concluding Defendant had taken Plaintiffs property interests by converting a railway easement to a “recreational easement.” Ellamae Phillips v. United States, 77 Fed.Cl. 387 (2007) (Ellamae I). We authorized an interlocutory appeal. On appeal, the U.S. Court of Appeals for the Federal Circuit (Federal Circuit) vacated judgment and remanded for our consideration of the scope of the railway easement, and contingently, whether the easement had been abandoned. Ellamae Phillips v. United States, 564 F.3d 1367 (Fed.Cir.2009) (Ellamae II).

Upon further consideration of the parties’ submissions on these issues and after further argument, we respond as follows:

• The Defendant’s railway easement does not include a recreational trail within its scope.
• As for the contingent issue of abandonment, we note that the parties do not [484]*484contend that the railway easement has been abandoned.

II. Factual Background

The following facts are set forth in both Ellamae I and Ellamae II, but we recite them again for the convenience of the reader. Plaintiff’s 2004 Complaint alleged that the conversion of a railroad right of way on plaintiffs land to a biking and hiking trail constituted a Fifth Amendment taking.

The Grand Valley Railway Company was granted a right of way in 1886 pursuant to the General Railroad Right of Way Act of March 3, 1876, eh. 162, 18 Stat. 482 (codified at 43 U.S.C. §§ 934-939 (1982)) (“the 1875 Act”), and it finished construction of the railroad on this right of way in 1887. Pursuant to the Act of June 11,1906 (34 Stat. 233), the United States issued a patent deed on December 21, 1923, to Joseph Diemoz for the tract of land now owned by plaintiff. Plaintiff is the successor in interest to Mr. Diem-oz’s patent and the Denver & Rio Grande Western Railroad is the successor in interest to the Grand Valley Railway Company’s right of way.

The alleged taking occurred pursuant to the National Trails System Act, Pub.L. No. 90-543, 83 Stat. 919 (1968) (codified as amended at 16 U.S.C. §§ 1241-51 (2006)) (“Trails Act”). The Trails Act authorized the Surface Transportation Board (STB) to preserve unused railway rights of way for future use and use them as recreational trails in the interim; this process is referred to as “rail-banking.” The Trails Act provided that interim trail 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.” 16 U.S.C. § 1247(d).

In order to effectively railbank a rail line, the railroad company must submit an abandonment application or a request for an exemption to the abandonment process. See 49 C.F.R. § 1152.29(e). A potential trail sponsor must file comments with the STB indicating an interest in interim trail use and provide a statement of willingness to assume managerial, legal, and tax responsibility for the right of way. 49 C.F.R. § 1152.29(a). If the railroad agrees to negotiate a railbanking agreement, the STB will issue a Notice of Interim Trail Use or Abandonment (NITU) to the railroad. 49 C.F.R. § 1152.29(d)(1). A railroad may either enter into an agreement with an interested trail group or abandon the line if they do not reach an agreement within 180 days after the NITU is issued. Id.

In 1998, the Roaring Fork Railroad Holding Authority (RFRHA) acquired the Denver & Rio Grande’s interest in the subject corridor and stated it was “formed to acquire the rail line in order to ensure its preservation for rail and other compatible public purposes.” Def. Ex. 8 at DOJ061. RFRHA submitted a Petition for Exemption to the STB on June 30, 1998, as well as a “Statement of Willingness to Assume Financial Responsibility.” The STB issued a NITU on October 15, 1998. The Roaring Fork Transportation Authority (RFTA) replaced RHRHA as the “interim trail user” in 2001. Def. Ex. 11 at DOJ188.

In 1995, plaintiff brought suit claiming that the Denver & Rio Grande Western Railroad had abandoned the line and that title to the right of way should revert to plaintiff. The United States District Court for the District of Colorado held that the Denver & Rio Grande Western Railroad had not abandoned its interest before October 4, 1988. Phillips Co. v. S. Pac. Rail Corp., 902 F.Supp. 1310, 1315 (D.Colo.1995). Plaintiff now concedes that the railway did not abandon the right of way before implementation of the Trails Act and that operation of the Trails Act itself does not constitute abandonment.

III. Procedural Background

In 2007, we granted plaintiffs Motion for Summary Judgment and found that the railroad had abandoned the easement across plaintiffs land and that the subsequent use of this land as a public trail constituted a taking. Ellamae I.

Our decision was based on the holding in Hash v. United States, 403 F.3d 1308 (Fed.Cir.2005). Hash discussed the ownership interests of “Category 1” landowners. Category 1 land was initially public, and the [485]*485landowners who acquired the public land pursuant to the Homestead Act of 1862, 12 Stat. 392 (codified as 43 U.S.C. § 161 (enacted 1891)) (repealed Pub.L. No. 94-679, 90 Stat. 2787 (1976)) received property already encumbered by 1875 Act easements. The Federal Circuit in Hash held that the 1875 Act granted the railroad an easement subject to the fee simple held by the Category 1 landowners. When the railroad abandoned the right of way, the owners were disencumbered of the railway easement, and the subsequent conversion of the land into a public trail constituted a taking. Hash, 403 F.3d at 1318.

Our ease also involves a Category 1 landowner, and we concluded that Hash held conversions of 1875 Act rights of way to trail use in Category 1 situations constituted abandonment and gave rise to takings liability as a matter of law. In light of our interpretation of Hash, we held that the conversion of plaintiffs land from a railroad to a trail was a taking and granted plaintiffs Cross Motion for Summary Judgment. Defendant appealed our decision to the Federal Circuit.

The issue on appeal was whether Hash dictated a finding of takings liability in all Category 1 conversions. In Ellamae II, the Court held that Hash

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Bluebook (online)
99 Fed. Cl. 483, 2011 WL 2466201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ellamae-phillips-co-v-united-states-uscfc-2011.