Haggart v. United States

108 Fed. Cl. 70, 2012 U.S. Claims LEXIS 1603, 2012 WL 6685542
United States Court of Federal Claims·Decided December 18, 2012·No. No. 09-103L·Published·Cited by 21 cases

Opinion

Rails-to-trails case; takings; class action with more than 500 opt-in plaintiffs; interpretation of deeds; ownership issues; liability; measuring damages

OPINION AND ORDER

LETTOW, Judge,

This takings case concerns land previously held as a right-of-way by Burlington Northern and Santa Fe Railway Company (“Burlington Northern”) in King County, Washington, and its transformation 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”). Plaintiffs comprise a class of approximately 522 named and opt-in owners of property allegedly adjacent to the right-of-way. The class has been divided into six subclasses based on the nature of the property interests held by plaintiffs. See Haggart v. United States, 104 Fed. Cl. 484 (2012). Plaintiffs in Subclasses Two (112 members) and Four (159 members) have filed separate motions for partial summary judgment. Plaintiffs in both subclasses allege they own property that was burdened by an easement for limited railroad purposes [75]*75that was exceeded and thus destroyed, making the defendant liable for taking plaintiffs’ property under the Fifth Amendment1 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). The government has submitted corresponding cross-motions for the two subclasses, contesting liability on a variety of grounds, including whether certain deeds granted an easement or a fee, whether easements are sufficiently broad to encompass trail use in addition to rail use, and whether ownership of certain properties has been shown beyond dispute.

The court concludes that the government is liable to the Subclass Two plaintiffs and several categories of the Subclass Four plaintiffs for the taking of their property by issuing the trail-use authorizations when the rail easements did not encompass that use. Certain ownership issues have been reserved for trial. 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.

BACKGROUND

This ease involves three strips of land totaling approximately 25.45 miles in length. Fourth Am. Compl. ¶¶ 1-3. The first section runs from milepost 0.0 at Woodinville to milepost 7.3 at Redmond; the second encompasses the span between milepost 5.0 at Ken-nydale and milepost 10.6 at Wilburton; and the third runs from milepost 11.25 near Wil-burton to milepost 23.8 in Woodinville (collectively, “the Corridor”). Fourth Am. Compl. ¶¶ 3-5. The railroad’s right-of-way was established during the late 1800s and early 1900s when its predecessors obtained grants of easements or fee simple estates from property owners in the area. See Pis.’ Mem. in Support of Subclass Two Pis.’ Mot. for Partial Summary Judgment on Liability and on the Proper Methodology to Determine the Amount of Just Comp. (“Pis.’ Subclass Two Mem.”) at 12, ECF No. 89; Pis.’ Mem. in Support of Subclass Four Pis.’ Mot. for Partial Summary Judgment on Liability (“Pis.’ Subclass Four Mem.”) at 8, ECF No. 100.

Burlington Northern in due course acquired the right-of-way, and in 2003, it announced its intent to divest itself of the lines at issue. Def.’s Resp. in Opp’n to Subclass Two Pis.’ Mot. for Partial Summary Judgment and Cross-Mot. for Partial Summary Judgment (“Def.’s Subclass Two Cross-Mot.”) at 9, ECF No. 108. By 2008, only two shippers were using part of the rail line located on the right-of-way at issue.2 On August 11, 2008, Burlington Northern filed with the Surface Transportation Board (“STB”) a petition for exemption to abandon the portion of the line extending from milepost 11.25 to milepost 23.8. Odom Deck, ECF No. 109, Ex. M (Petition for Exemption). Shortly thereafter, on September 5, 2008, Burlington Northern filed notices of exemption to abandon the remainder of the corridor at issue. Id., Exs. J, N (Notices of Exemption).

On September 18, 2008, King County requested a Notice of Interim Trail Use (“NITU”) from the STB and stated its willingness to assume financial responsibility for trail use. Subclass Two Pis.’ Proposed Findings of Uncontroverted Fact (“Subclass Two PFF”), ECF No. 90, Ex. B.l at 1, Ex. B.2 at 2, Ex. B.3 at 2. Acting on that request and Burlington Northern’s notices, the STB issued three NITUs — two on October 27, 2008 and one on November 28, 2008. Subclass Two PFF, Exs. B.l, B.2, and B.3. On December 18, 2009, Burlington Northern and King County entered into a Trail Use Agreement that allows for public recreational trail use. Odom Deck, Ex. R (Trail Use Agreement). This agreement also stipulated that the rail[76]*76road line would be “rail-banked” for potential railroad use in the future. Id.3

On February 19, 2009, Daniel and Kathy Haggart filed suit in this court, alleging an uncompensated taking of their property contravening the Fifth Amendment. In this complaint, the Haggarts contended that cessation of railroad activities across the burdened property effected an abandonment of the railroad-purposes easement under Washington law, leading to a taking when the NITUs authorizing recreational trail use were issued. Compl. ¶¶ 8-18. In addition to the takings claim, the Haggarts also requested certification of a class consisting of adversely affected residuary landowners. Compl. ¶¶ 19-21. This court certified the class action on September 28, 2009, see Haggart v. United States, 89 Fed.Cl. 523 (2009), and on December 23, 2009, the court approved an opt-in plan for providing class notice, see Order of December 23, 2009, ECF No. 33. Potential plaintiffs were given until July 1, 2010 to join the class, see Order of Jan. 8, 2010, ECF No. 35, and on August 16, 2010, plaintiffs filed a fourth amended complaint listing all persons and entities who opted into the class.4 After examination of the numerous claims and because more than 500 plaintiffs were involved, on December 9, 2011, the parties filed a joint motion to establish subclasses, ECF No. 74. The court granted this motion and established six subclasses on April 26, 2012. Haggart, 104 Fed.Cl. 484.

On June 18, 2012, Subclass Two plaintiffs filed their motion for partial summary judgment on the issues of liability and proper methodology to determine the amount of just compensation. On July 13, 2012, Subclass Four plaintiffs filed their motion for partial summary judgment on the issue of liability. On August 21, 2012, the government responded to the Subclass Two plaintiffs’ motion with a cross-motion for partial summary judgment on those same issues, and on September 4, 2012, the government responded to the Subclass Four plaintiffs’ motion with a cross-motion for partial summary judgment on the issue of liability.

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Haggart v. United States, 108 Fed. Cl. 70, 2012 U.S. Claims LEXIS 1603, 2012 WL 6685542 (uscfc 2012).

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