Geneva Rock Products, Inc. v. United States

107 Fed. Cl. 166, 2012 U.S. Claims LEXIS 1413, 2012 WL 5866135
CourtUnited States Court of Federal Claims
DecidedNovember 16, 2012
DocketNo. 08-920L
StatusPublished
Cited by8 cases

This text of 107 Fed. Cl. 166 (Geneva Rock Products, 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
Geneva Rock Products, Inc. v. United States, 107 Fed. Cl. 166, 2012 U.S. Claims LEXIS 1413, 2012 WL 5866135 (uscfc 2012).

Opinion

OPINION AND ORDER

LETTOW, Judge.

This takings case concerns the transformation of a portion of a line of railroad called the Provo Industrial Lead and its attendant right-of-way into a recreational trail under Section 208 of the National Trails System Act Amendments of 1983, Pub.L. No. 98-11, § 208, 97 Stat. 42, 48 (codified at 16 U.S.C. § 1247(d)) (“Trails Act”). Prior to this transformation, each plot of land in question was burdened by an easement for railroad purposes, granted under the 1875 General Railroad Right-of-Way Act, 43 U.S.C. §§ 934-939 (“1875 Act”) (repealed in part, Pub.L. 94-579, tít. VII, § 706(a), 90 Stat. 2793 (1976)). Plaintiffs comprise a class of twenty-six named and opt-in owners of property adjacent to the right-of-way.1 They allege that the easements for limited railroad purposes were exceeded and thus destroyed, making the defendant liable for taking plaintiffs’ property under the Fifth Amendment2 by authorizing use of the property as a trail. See, e.g., Preseault v. Interstate Commerce Comm’n, 494 U.S. 1, 110 S.Ct. 914, 108 L.Ed.2d 1 (1990). (“Preseault I”) (holding that the Tucker Act, 28 U.S.C. § 1491(a), provided a remedy for an alleged taking of a property interest in land previously used as a railroad right-of-way that had been transferred to a public entity for use as a public trail). Before the court are the plaintiffs’ motion for partial summary judgment and defendant’s corresponding cross-motion, both of which address issues of liability and damages. Plaintiffs have also requested that the court reopen the class to give notice to, and potentially to admit, a discrete group of affected property owners who were not previously known and thus were not given notice of the pendency of the class action.

The court concludes that the government is liable to the plaintiffs for the taking of their property after exceeding the scope of the former easement. Further, the court holds that the proper method of calculating damages is the difference between the value of each parcel unencumbered by trail usage and its value so encumbered. Additionally, for good cause shown, the class shall be reopened for the limited purpose of providing notice to, and potentially admitting, the limited number of newly discovered potential members of the class.

BACKGROUND

The setting for this takings dispute is a 3.23-mile strip of land previously used as a railroad right-of-way in Utah, spanning milepost 772.00 near Cutler, to milepost 775.23 near Mount. Am. Compl. ¶ 3. From 1875 until the early 2000s, this 200-footi-wide corridor was burdened by an easement for railroad purposes granted to Utah Southern Railroad Company pursuant to the 1875 Act. Stipulations, ECF No. 45 (“Stips.”), ¶ 3. By the early 2000s, the railroad-purposes easement was held by Utah Southern Railroad Company’s successor-in-interest, Union Pacific Railroad Company (“Union Pacific”). Stips. ¶¶ 3-4. Each plaintiff allegedly owns or owned a parcel or parcels of land adjacent to the pertinent segment of the corridor, plus a fee interest under the corridor that has [168]*168been burdened by the railroad easement since its inception. Stips. ¶ 11. The parcels were originally granted to the plaintiffs’ predecessors-in-interest through federal land patents. Id.

By 2000, and perhaps earlier, Union Pacific had ceased moving local traffic over the rail corridor. See Pis.’ Proposed Findings of Fact (“Pis.’ PFF”), Ex. A (Notice of Exemption (Nov. 12, 2002)), at 1. On January 28, 2002, the Utah Transit Authority (“UTA”) filed a notice of exemption with the Surface Transportation Board (“STB”), proposing to acquire rights-of-way and physical assets from Union Pacific, reserving to Union Pacific an easement on the property to conduct freight rail operations. Id., Ex. E. The STB dismissed the resulting proceeding on May 17, 2002, noting that

the asset acquisition involved ... is not subject to Board jurisdiction and its consummation would not make UTA a common carrier because it will not conduct freight operations or hold itself out to the public as willing or able to do so, citing Maine, DOT-Acq. Exemption, ME. Central R. Co., 8 I.C.C.2d 835 (1991) (State of Maine). UTA states that U[union Pacific] will continue to be the only common carrier on the [ljines performing freight operations after consummation of the transaction.

Pis.’ PFF, Ex. F, at 3. After the STB’s dismissal, Union Pacific and UTA consummated the proposed transaction. See Def.’s Response to Pis.’ PFF and Def.’s Proposed Findings of Uncontroverted Facts (“Def.’s PFF”) ¶¶ 15,16.

Subsequently, on November 12, 2002, Union Pacific filed a notice of exemption with the STB to allow Union Pacific to abandon its remaining interest in the line. Pis.’ PFF, Ex. A (Notice of Exemption (Nov. 12, 2002)). One month later, on December 12, 2002, UTA requested a Notice of Interim Trail Use (“NITU”) from the STB and stated its willingness to assume financial responsibility for trail use. Id., Ex. B (Letter Requesting Issuance of NITU (Dee. 12, 2002)), at 1-2. Acting on that request, the STB issued a NITU on December 30, 2002, which was served the next day, December 31, 2002. Id., Ex. C (NITU).

On March 13, 2003, Union Pacific notified the STB that it had reached an agreement with UTA for public recreational trail use along the line. Am. Compl. ¶ 10. This agreement also stipulated that the railroad line would be “rail-banked” for potential railroad use in the future. Pis.’ PFF, Ex. B, (Letter Requesting Issuance of NITU), at 2.3 That agreement has been effectuated; the Provo Industrial Lead line at issue has been converted to a recreational trail, and continues to be used as such at the present time. See Pis.’ PFF, Ex. G (Affidavit of J. Robert Sears (June 14, 2012), and accompanying photograph).

On December 30, 2008, Geneva Rock filed suit in this court, alleging an uncompensated taking of its property contravening the Fifth Amendment. In this complaint, Geneva Rock argued that cessation of railroad activities across the burdened property effected an abandonment under Utah law of the railroad-purposes easement, leading to a taking when UTA continued to use the newly unburdened property as a trail. Compl. ¶¶8-13. In addition to the takings claim, Geneva Rock also requested certification of a class consisting of adversely affected residuary landowners. Compl. ¶¶ 14-16. This court granted the motion to certify the class action on [169]*169September 15, 2011, see Geneva Rock Prods., Inc. v. United States, 100 Fed.Cl. 778 (2011), and on October 11, 2011, the court approved an opt-in plan for providing class notice, see Order of Oct. 11, 2011, ECF No. 35. Potential plaintiffs were given until January 13, 2012 to join as members, and on January 27, 2012, plaintiffs filed an amended complaint listing all persons and entities who opted into the class. On February 3, 2012, plaintiffs produced a Claims Book to the government, see Am.

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Cite This Page — Counsel Stack

Bluebook (online)
107 Fed. Cl. 166, 2012 U.S. Claims LEXIS 1413, 2012 WL 5866135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/geneva-rock-products-inc-v-united-states-uscfc-2012.