Goldman v. RBC, INC.

632 S.E.2d 850, 369 S.C. 462, 2006 S.C. LEXIS 235
CourtSupreme Court of South Carolina
DecidedJuly 3, 2006
Docket26178
StatusPublished
Cited by10 cases

This text of 632 S.E.2d 850 (Goldman v. RBC, INC.) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goldman v. RBC, INC., 632 S.E.2d 850, 369 S.C. 462, 2006 S.C. LEXIS 235 (S.C. 2006).

Opinion

Justice BURNETT:

RBC, Inc. (Petitioner) challenges the Court of Appeals’ decision affirming the circuit court judge’s ruling quieting title to a strip of land containing an abandoned railway in David W. Goldman and Emilie E. Goldman (the Goldmans). We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

In 1846, the General Assembly, anxious to encourage the building of railroads, granted a liberal charter by statute to the Wilmington & Manchester Railroad Company. In provisions typically seen in railroad charters of that era, the railroad was empowered to obtain land on which to lay track by buying it and receiving a deed; condemning it through the formal process of eminent domain; or through a statutory presumption of grant by which the railroad would simply lay track where it wished and then, if the owner asserted his rights within ten years after completion, pay the owner a fair market price for the land. Act No. 2986, 1846 S.C. Acts 402, §§ XVI and XVII. It is the third method which is at issue in *464 the present case, and it is undisputed the owner of the land at the time of construction never sought compensation from the railroad by 1863, ten years after this section of track was completed. 1

CSX Transportation (CSX), the successor in interest to the Wilmington & Manchester and several other railroad companies which have used this particular track since 1863, in 1994 abandoned a 16.1-mile stretch of track between Lynchburg and Sumter through a process overseen by the former Interstate Commerce Commission. In 1995, Petitioner paid $104,000 to obtain a quitclaim deed from CSX for a 1.19-mile portion of the abandoned track, which it intended to use to bring railroad tankers to its location. Petitioner manufactures and installs non-sparking agitation equipment used in railroad tankers.

The Goldmans own a 190-acre farm through which a portion of the 1.19-mile track passes. The track is located across a pond about 100 yards from their home, which they built in *465 1992. Before the unanticipated sale to Petitioner, the Gold-mans planned to buy the strip of land from CSX after abandonment in order to avoid litigation over its ownership and they contacted CSX to discuss a sale.

After CSX sold the land to Petitioner, ,the Goldmans sued Petitioner in 1998 to quiet title in therqselves as adjoining landowners in the strip of land, totaling about four acres, which passes through their farm. The circuit court, on cross-motions for summary judgment ruled in favor of the Goldmans and ordered that fee simple title is held by the Goldmans.

The Court of Appeals affirmed. Goldman v. RBC, Inc., Op. No.2004-UP-362 (S.C. Ct.App. filed June 4, 2004) (unpublished opinion). We granted the petition for a writ of certiorari to consider the following issue:

Did the Court of Appeals err in rejecting Petitioner’s argument that a ruling which quieted title in the Goldmans conflicts with Lewis v. Wilmington & Manchester Railroad Company, 45 S.C.L. (11 Rich.) 91 (1857)?

STANDARD OF REVIEW

An action to remove a cloud on and to quiet title to land is one in equity. Johnson v. Arbabi, 355 S.C. 64, 68, 584 S.E.2d 113, 115 (2003). In an action in equity tried by a judge alone, the appellate court may find facts in accordance with its view of the preponderance of the evidence. Doe v. Clark, 318 S.C. 274, 276, 457 S.E.2d 336, 337 (1995); Townes Assocs., Ltd. v. City of Greenville, 266 S.C. 81, 221 S.E.2d 773 (1976). However, this broad scope of review does not require the appellate court to disregard the findings made below. Stevenson v. Stevenson, 276 S.C. 475, 279 S.E.2d 616 (1981).

Summary judgment is appropriate when it is clear there is no genuine issue of material fact and the moving party is entitled to a judgment as a matter of law. The evidence must be viewed in the light most favorable to the non-moving party. George v. Fabri, 345 S.C. 440, 548 S.E.2d 868 (2001). In reviewing a summary judgment motion, the appellate courts apply the same standards as the trial court under Rule 56(c), SCRCP. Baughman v. Am. Tel. and Tel. Co., 306 S.C. 101, 115, 410 S.E.2d 537, 545 (1991).

*466 LAW AND ANALYSIS

Petitioner argues the Court of Appeals erred in declining to follow the view Petitioner believes was expressed in Lewis v. Wilmington & Manchester Railroad Company, 45 S.C.L. (11 Rich.) 91 (1857). Petitioner contends the Goldmans are forever barred by statute from recovering the disputed land because their predecessors in interest failed to file for an assessment by 1868, ten years after completion of the railroad. CSX’s predecessor obtained fee simple title to the property at that time, which was confirmed by this Court in Lewis and consequently became a property right which could not be divested by later developments in the law. Specifically, Petitioner relies on the statement in Lewis that “if application for an assessment is not made within ten years after the completion of the road, the owner is forever barred from recovering the land or having an assessment, which manifests the intention of the legislature to divest the owner’s title....” Id. at 94. Therefore, the Wilmington & Manchester Railroad obtained a fee simple title, meaning CSX, as successor in interest, was able to transfer a fee simple title in the land to Petitioner in 1995. We disagree.

In several cases, we have considered the following issue: When a previous landowner did not assert his ownership rights and force the railroad to buy the land within a specified period after completion of the tracks pursuant to a statutory presumption of a land grant contained in a railroad charter, did the railroad (A) obtain an easement across the land as long as it was used as a railroad, with the property reverting to present adjoining landowners when no longer used as a railroad or (B) obtain title to the land in fee simple absolute, giving the railroad’s successor in interest the ability to transfer a fee simple title to the land? We repeatedly have held that the answer to this question is (A). 2

*467 Most recently, in Faulkenberry v. Norfolk Southern Ry. Co., 349 S.C. 318, 563 S.E.2d 644

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Bluebook (online)
632 S.E.2d 850, 369 S.C. 462, 2006 S.C. LEXIS 235, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldman-v-rbc-inc-sc-2006.