HENLEY v. United States

CourtUnited States Court of Federal Claims
DecidedNovember 7, 2024
Docket22-1716
StatusUnpublished

This text of HENLEY v. United States (HENLEY 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
HENLEY v. United States, (uscfc 2024).

Opinion

In the United States Court of Federal Claims

FRANCIE A. HENLEY, et al.,

Plaintiffs, No. 22-1716 v. (Filed: November 7, 2024) THE UNITED STATES,

Defendant.

Michael J. Smith, Steven M. Wald, Thomas S. Stewart, Reed W. Ripley, Stewart, Wald & Smith, LLC, St. Louis, Missouri and Kansas City, for Plaintiffs. Daniel Pinkston, Senior Trial Attorney, Denver, Colorado, Todd Kim, Assistant Attorney General, Environment & Natural Resources Division, Washington, D.C., United States Department of Justice, for Defendant. OPINION AND ORDER HADJI, Judge. Plaintiffs seek just compensation under the Fifth Amendment for the Government’s alleged appropriation of their land for recreational trail use under the National Trail Systems Act, 16 U.S.C. §§ 1241-51 (Trails Act). See generally Second Am. Compl., ECF 11. The core dispute is whether Plaintiffs have a property interest in the disputed land. Plaintiffs allege that their predecessors in title, through certain “source deeds” dating from the late nineteenth and early twentieth centuries, granted the previous railroad operator easements across their property to build a railway corridor, and those easements terminated when the land ceased to be used for railroad purposes. Pls.’ Mot. Summ. J. at 1, 13-15, 18, ECF 30. In contrast, the Government argues that the source deeds relied on by Plaintiffs conveyed fee simple title to the original railroad operator such that Plaintiffs do not have any property interest in the land at issue. Def.’s Mem. at 2, ECF 34. Before the Court is Plaintiffs’ Partial Motion for Summary Judgment (ECF 30) and the Government’s Cross-Motion for Partial Summary Judgment (ECF 33). For the following reasons, Plaintiffs’ Partial Motion for Summary Judgment is GRANTED IN PART AND DENIED IN PART, and the Government’s Cross-Motion for Partial Summary Judgment is GRANTED IN PART AND DENIED IN PART. BACKGROUND This action is brought by Plaintiffs Francie A. Henley, Justin & Angela Lakso, John Elmar Wagner, Thomas & Pamela Heitzmann, Neun Family Irrevocable Trust, Properties & Holdings by Abigale, LLC, Jeffrey Titter, and Believers Bible Chapel.1 Second Am. Complaint ¶¶ 1-11. The parties stipulate that Plaintiffs own various parcels of land adjacent to a railroad line in Franklin County, Missouri. ECF 29. The railroad line is currently owned by V and S Railway, LLC (V&S). Pls. Ex. A at 2, ECF 30-1. Plaintiffs allege that their predecessors in title, through certain “source deeds” from approximately 120 years ago, granted St. Louis, Kansas City & Colorado Railroad Co. (the Original Railroad) an easement across their property to build a railway corridor. Pls.’ Mot. Summ. J. at 1-2, ECF 30. In October 2022, V&S filed a “Notice of Exemption” with the Surface Transportation Board (STB), seeking exemption authority for the abandonment of a section of rail line between Union, Missouri and Beaufort, Missouri (the Corridor). Pls. Ex. A at 2, ECF 30-1. Pursuant to the Trails Act, 16 U.S.C. § 1247(d), the Missouri Department of Natural Resources requested issuance of a Notice of Interim Trail Use or Abandonment (NITU), effective for one year, so that it could negotiate with V&S for an interim trail use agreement pursuant to which the Corridor could be developed as a trail. Id. On November 18, 2022, the STB issued a NITU, Pls. Ex. D, ECF 30-4, which was later extended through November 18, 2024. Pls. Ex. F, ECF 30-6. Negotiations continue over an interim trail use agreement.2 The parties agree on the identification of the applicable source deeds. ECF 29. Specifically, the parties do not dispute that: (1) Plaintiffs owned the property identified in the table below at the time of the NITU; (2) the tax parcels listed adjoin the Corridor described in the NITU; and (3) the source deeds identified correspond to at least a portion of the railroad corridor adjacent to Plaintiffs’ tax parcels listed here:

Plaintiff(s) Franklin County Source Deed Grantor Pls.’ Parcel Number Name (Book/Page) Exhibit Nos. Francie A. Henley 17-9-30.2-0-000-003.000 G.A. Evert (53/276) I-1 Justin & Angela Lakso 23-2-04.0-0-000-009.100 J. Crowe (30/498) I-2 John Elmar Wagner 23-2-04.0-0-000-009.000 J. Crowe (30/498) I-2

1 Jeffrey Titter and Believers Bible Chapel are not movants as to this motion. 2 Despite the ongoing negotiations, the parties do not dispute that Plaintiffs’ claims are ripe. It is well settled that a takings claim accrues upon the issuance of a NITU. Barclay v. United States, 443 F.3d 1368, 1373 (Fed. Cir. 2006). Accrual does not depend on the execution of a trail use agreement or the trail operator taking physical possession of the right-of-way. Id.

2 Thomas & Pamela 23-1-02.0-0-000-010.00 C. Siese (53/247) I-3 Heitzmann Neun Family Irrevocable 23-3-05.0-0-000-016.000 Spradling (30/514) I-4 Trust Osborne (53/282) I-5 Properties & Holdings 17-9-30.2-0-000-010.000 A. Fink (53/250) I-6 by Abigale, LLC ECF 29. Plaintiffs filed this action on November 21, 2022, alleging that the NITU resulted in a taking of their property. ECF 1. Plaintiffs amended their Complaint on January 5, 2023, ECF 5, and again on April 6, 2023. ECF 11. Although trail use negotiations remained ongoing at the close of discovery, the parties suggested that the most efficient course forward would be to brief the issue of what interests were conveyed by the source deeds. See id. Accordingly, Plaintiffs filed their Motion for Partial Summary Judgment on January 5, 2024, seeking summary judgment on the “threshold liability issues” of whether Plaintiffs have a reversionary interest in the land within the railroad right of way subject to the NITU, and whether recreational trail use exceeds the scope of the easements. ECF 30 at 6. The Government filed its Motion for Partial Summary Judgment on February 9, 2024, opposing Plaintiff’s entitlement on these threshold liability issues. ECF 33. Additionally, an Amicus Brief was filed on behalf of five landowners who are plaintiffs in the indirectly related matter, Bacon et al. v. United States, Case No. 22-1724, which is pending before the undersigned. ECF 40. The Bacon plaintiffs own property on the same rail line at issue in this matter and acquired that property by virtue of three of the source deeds under consideration here. Id. at 2. LEGAL STANDARD According to the Rules of the United States Court of Federal Claims, summary judgment is appropriate “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.” Rule 56(a).3 “[A]ll evidence must be viewed in the light most favorable to the nonmoving party, and all reasonable factual inferences should be drawn in favor of the nonmoving party.” Dairyland Power Co-op. v. United States, 16 F.3d 1197, 1202 (Fed. Cir. 1994). The Supreme Court has instructed that “the mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment; the requirement is that there be no genuine issue of material fact.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48 (1986) (emphasis omitted). Disputes over facts that are not outcome-determinative will not preclude the entry of summary judgment. Id. at 248. A dispute about a material fact is genuine “if the evidence is such that a reasonable [trier of fact] could return a verdict for the nonmoving party.” Id.

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