GALT AUTOMOTIVE WAREHOUSE, INC v. United States

CourtUnited States Court of Federal Claims
DecidedOctober 28, 2025
Docket24-1679
StatusPublished

This text of GALT AUTOMOTIVE WAREHOUSE, INC v. United States (GALT AUTOMOTIVE WAREHOUSE, INC 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
GALT AUTOMOTIVE WAREHOUSE, INC v. United States, (uscfc 2025).

Opinion

In the United States Court of Federal Claims No. 24-1679 Filed: October 28, 2025

GALT AUTOMOTIVE WAREHOUSE, INC., et al.,

Plaintiffs,

v.

THE UNITED STATES,

Defendant.

Lindsay S.C. Brinton, with Meghan S. Largent, Michael Armstrong, and Marlee L. Rowe, Lewis Rice, LLC, St. Louis, MO, for Plaintiffs.

Alexis E. Smith, Environment and Natural Resources Division, Natural Resources Section, with Adam R.F. Gustafson, Acting Assistant Attorney General, U.S. Department of Justice, Washington, D.C., for Defendant.

MEMORANDUM OPINION AND ORDER

TAPP, Judge.

Plaintiffs seek damages for the United States’ uncompensated taking related to their New York properties. They now move for partial summary judgment as to liability. (Pls.’ Mot., ECF No. 23). The United States objects in part and cross-moves for partial summary judgment. (Def.’s Mot., ECF No. 30). The United States first argues that genuine issues of material fact exist for two (2) of the four (4) properties because Plaintiffs cannot demonstrate ownership of property adjacent to and underlying the rail line; it also argues that none of the Plaintiffs can establish causation. The Court finds that genuine issues of material fact exist as to the two properties and therefore GRANTS-IN-PART and DENIES-IN-PART Plaintiffs’ Motion for Partial Summary Judgment. Additionally, the United States’ Cross-Motion for Partial Summary Judgment is DENIED.

I. Background

This rails-to-trails case concerns a 41.1-mile section of rail line running from the Connecticut/New York State Line to Beacon, New York across Dutchess and Putnam Counties (the “Line”): (Compl. ¶ 3, ECF No. 1; Pls.’ Mot. at 1). In 1995, the Line was acquired by the Metro-North Commuter Railroad Company (“MNR”). (Pls.’ Mot. at 1). Years later, MNR petitioned the Surface Transportation Board (“STB”) for permission to abandon the Line. (Id. at 1–2). MNR sought to preserve the Line for use as a recreational trail through 16 U.S.C. § 1247(d) of the National Trails System Act Amendments of 1983 (the “Trails Act”). (Id. at 2).

Under the Trails Act, a railroad may initiate abandonment proceedings of a rail line before the STB. 49 U.S.C. § 10903; see 16 U.S.C. § 10502. The Trails Act permits intervention by qualified private organizations or public agencies to preserve the corridor before abandonment is consummated by agreeing to serve as a trail operator in the interim; this process is known as “railbanking.” 16 U.S.C. § 1247(d). The railbanking intervention process allows a railroad to negotiate with the intervening entity, which assumes financial and managerial responsibility for the corridor by operating it as a recreational trail. 28 A.L.R. Fed. 3d Art. 6 (citing Preseault v. ICC, 494 U.S. 1, 6–7, (1990) (“Preseault I”)). To allow for this process, the STB may issue a Notice of Interim Trail Use or Abandonment (“NITU”). 49 C.F.R. § 1152.29. If the railroad and trail sponsor agree, then the parties notify the STB, the corridor is railbanked, the STB retains jurisdiction, and “interim trail use is thereby authorized.” Preseault I, 494 U.S. at 7 n.5 (1990); see also 16 U.S.C. § 1247(d); 49 C.F.R. § 1152.29(h). If an agreement is not reached, the railroad may exercise its STB-granted authority to abandon the line. 49 C.F.R. § 1152.29(d)(1), (e)(2); see also Citizens Against Rails-to-Trails v. STB, 267 F.3d 1144, 1150–53 (D.C. Cir. 2001).

In December 2023, MNR filed a Verified Notice of Exemption of Abandonment (“Abandonment Application”) with the STB. (Pls.’ Mot., Ex. II, ECF No. 23-35). MNR also formally requested to assume financial responsibility for the Line and requested a NITU, (id., Ex. KK, ECF No. 23-37), which the STB issued on February 8, 2024, (id., Ex. MM, ECF No. 23-39).

2 Per the NITU, MNR was required to notify STB of a trail use agreement prior to its expiration on February 8, 2025. (Id., Ex. MM at 3). MNR filed for and was granted an Extension of the Interim Trail Use Negotiation Period, which is now set to expire on February 8, 2026. (Def.’s Mot. at 5 (citing Def.’s Mot. Ex. 1, ECF No. 30-1)). According to the United States, MNR is currently considering a trail use agreement, though none has been reached. (Def.’s Mot. at 6 (citing Def.’s Mot. Ex. 2 at 5, ECF No. 30-2)). 1

II. Analysis

A. Standard of Review

The parties each move for summary judgment. The Court may “grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” RCFC 56(a). The moving party bears the burden of demonstrating the absence of any genuine issue of material fact. See Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). Facts are material if they “might affect the outcome of the suit.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). A genuine factual dispute exists when “the evidence is such that a reasonable [factfinder] could return a verdict for the nonmoving party.” Id.

While “inferences to be drawn from the underlying facts . . . must be viewed in the light most favorable to the party opposing the motion,” United States v. Diebold, Inc., 369 U.S. 654, 655 (1962), summary judgment may still be granted when the party opposing the motion submits evidence that “is merely colorable . . . or is not significantly probative.” Anderson, 477 U.S. at 251 (internal citation omitted). However, the moving party “need not produce evidence showing the absence of a genuine issue of material fact but rather may discharge its burden by showing . . . that there is an absence of evidence to support the nonmoving party’s case.” Dairyland Power Co-op. v. United States, 16 F.3d 1197, 1202 (Fed. Cir. 1994) (citing Celotex Corp., 477 U.S. at 325). Courts may only grant summary judgment when “the record taken as a whole could not lead a rational trier of fact to find for the non-moving party[.]” Matsushita, Elec. Indus. Co., Ltd. v. United States, 475 U.S. 574, 587 (1986) (quoting First Nat. Bank of Ariz. v. Cities Serv. Co., 391 U.S. 253, 289 (1968)).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
GALT AUTOMOTIVE WAREHOUSE, INC v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/galt-automotive-warehouse-inc-v-united-states-uscfc-2025.