Hardy v. United States

127 Fed. Cl. 1, 2016 U.S. Claims LEXIS 423, 2016 WL 2587090
CourtUnited States Court of Federal Claims
DecidedMay 4, 2016
Docket14-388L
StatusPublished
Cited by21 cases

This text of 127 Fed. Cl. 1 (Hardy 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
Hardy v. United States, 127 Fed. Cl. 1, 2016 U.S. Claims LEXIS 423, 2016 WL 2587090 (uscfc 2016).

Opinion

*5 Rails-to-Trails; Fifth Amendment Taking; NITU; Easement; Fee Simple; Strip of Land; Right-of-Way; Railroad Purposes; Deed; Conveying Easements Under Georgia Law; Scope of Easement; Parcel of Land

OPINION AND ORDER

SWEENEY, Judge

In this Rails-to-Trails class action, 112 plaintiffs contend that they own real property adjacent to a railroad corridor in Newton County, Georgia. They assert that until 2013, defendant, the United States, held easements for railroad purposes that crossed their land. According to plaintiffs, defendant then authorized the conversion of the railroad rights-of-way to recreational trails pursuant to the National Trail Systems Act (“Trails Act”), conduct that resulted in a taking that violated the Just Compensation Clause of the Fifth Amendment to the Unii> ed States Constitution. Plaintiffs move for partial summary judgment on the issue of liability. Defendant cross-moves for partial summary judgment regarding the parcels of land identified in plaintiffs’ motion, and also with respect to additional parcels that defendant identifies. For the reasons set forth below, the court grants in part and denies in part the parties’ motions.

I. BACKGROUND

A. Statutory and Regulatory Context

During the last century, the United States began to experience a sharp reduction in rail trackage. Preseault v. Interstate Commerce Comm’n, 494 U.S. 1, 5, 110 S.Ct. 914, 108 L.Ed.2d 1 (1990) (“Preseault I”). To remedy this problem, Congress enacted a number of statutes, including the Trails Act, 16 U.S.C. §§ 1241-1251 (2012). The Trails Act, as amended, provides for the preservation of “established railroad rights-of-way for future reactivation of rail service” by authorizing the interim use of such rights-of-way as recreational and historical trails. Id. § 1247(d). This process is referred to as “railbanking,” and is overseen by the Surface Transportation Board (“STB”), id. the federal agency with the exclusive jurisdiction to regulate “the construction, acquisition, operation, abandonment, or discontinuance” of most railroad lines in the United States, 49 U.S.C. § 10501(b) (2012). .

Before railbanking can occur, the railroad company must seek to abandon its line, either by initiating abandonment proceedings with the STB pursuant to 49 U.S.C. § 10903, or by requesting that the STB exempt it from such proceedings pursuant to 49 U.S.C. § 10502. When considering the railroad company’s abandonment application or exemption request, the STB will entertain protests and comments from interested third parties. 49 C.F.R. §§ 1152.25, 1152.29(a) (2010). These third parties may submit requests for the interim use of the railroad line as a trail pursuant to' 16 U.S.C. § 1247(d) and make offers of financial assistance pursuant to 49 U.S.C. § 10904. Id.

If an interested third party submits a trail use request to the STB that satisfies the requirements of 16 U.S.C. § 1247(d), the STB must then make the necessary findings pursuant to 49 U.S.C. § 10502(a) or 49 U.S.C. § 10903(d). Once the railroad company agrees to negotiate a trail use agreement, the STB will issue one of two documents: if the railroad company initiated abandonment proceedings, the STB will issue a Certificate of Interim Trail Use or Abandonment; if the railroad company sought an exemption, the STB will issue a Notice of Interim Trail Use or Abandonment (“NITU”). Id. § 1152.29(b)-(d). The effect of both documents is the same: to “permit the railroad to discontinue service, cancel any applicable tariffs, and salvage track and materials, consistent with interim trail use and rail banking ...; and permit the railroad to fully abandon the line if no agreement is reached 180 days after it is issued, subject to appropriate con-ditions_” Id. § 1152.29(d)(1); accord id. § 1152.29(c)(1). The STB will entertain requests to extend the 180-day deadline to enable further negotiations. If the railroad company and the interested third party execute a trail use agreement, then abandonment of the railroad line is stayed for the duration of the agreement. Id. § 1152.29(e)-(d); 16 U.S.C. § 1247(d). If no trail use agreement is executed, the railroad company is permitted to fully abandon the line. 49 *6 C.F.R. § 1152.29(c)-(d). To exercise its abandonment authority, the railroad company must “file a notice of consummation with the STB to signify that it has ... fully abandoned the line” within one year of “the service date of the decision permitting the abandonment_” Id. § 1152.29(e)(2). In the absence of a timely filed notice of consummation, the railroad company’s authority to abandon the line automatically expires. Id.

If efforts to execute a trail use agreement are unsuccessful, and the railroad company notifies the STB that it has fully abandoned the line, the STB is divested of jurisdiction over, the abandoned railroad line and “state law reversionary property interests, if any, take effect.” Caldwell v. United States, 391 F.3d 1226, 1228-29 (Fed.Cir.2004).

B. The Initial Acquisition of the Land in Question

As explained above, plaintiffs are 112 individuals who collectively own 173 parcels of land adjacent to a railroad corridor in Newton County, Georgia. The disputed land is situated between milepost E 65.80 (at the point of the railroad line crossing Route 229 in Newborn, Georgia) and milepost E 80.70 (near the intersection of Washington Street, SW, and Turner Lake Road, SW, in Coving-ton, Georgia), a distance of 14.9 miles. The alleged easements were acquired by the Middle Georgia & Atlantic Railway Company (“MG & AR”). In 1896, the Central of Georgia Railway Company (“CGA”) bought MG & AR. CGA subsequently extended the railroad line to Porterdale, Georgia. In 1963, CGA was bought by Southern Railway Company, which merged CGA with two other railroad companies to form the modern-day CGA.

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Cite This Page — Counsel Stack

Bluebook (online)
127 Fed. Cl. 1, 2016 U.S. Claims LEXIS 423, 2016 WL 2587090, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hardy-v-united-states-uscfc-2016.