James Fredrick Miles v. Texas Central Railroad & Infrastructure, Inc. and Integrated Texas Logistics, Inc.

Texas Supreme Court·Decided June 24, 2022·No. 20-0393·Published

Opinion

Supreme Court of Texas ══════════ No. 20-0393 ══════════

James Fredrick Miles, Petitioner,

v.

Texas Central Railroad & Infrastructure, Inc. and Integrated Texas Logistics, Inc., Respondents

═══════════════════════════════════════ On Petition for Review from the Court of Appeals for the Thirteenth District of Texas ═══════════════════════════════════════

JUSTICE HUDDLE, joined by Justice Devine and Justice Blacklock, dissenting.

Today the Court holds that two for-profit corporations wield the power of eminent domain, allowing them to forcibly take thousands of parcels of privately owned Texas land located along the proposed route of a high-speed train they hope—someday—to build and operate.1 To justify this mass-scale exercise of an extraordinary sovereign power by

1 I refer to these two corporate entities, Texas Central Railroad & Infrastructure, Inc. and Integrated Texas Logistics, Inc., collectively as “Texas Central.” private parties, the Court resurrects a 115-year-old statute governing “interurban electric railways”—sisters to the trolley car—that were popular in the late nineteenth century but largely disappeared in the 1930s with the rise of the private automobile. No one questions that the statute, Transportation Code Section 131.012, granted eminent-domain authority to facilitate construction of small electric railways for ferrying Texans short distances between adjacent towns and up and down Main Streets alongside horse-drawn carriages. But it blinks reality to conclude, as the Court does, that the same trolley-car statute confers eminent- domain power on private entities aspiring to build—in 2022—a massive $30 billion infrastructure project capable of supporting an elevated, 672-foot-long high-speed train as it traverses hundreds of miles and thousands of privately owned parcels between Houston and Dallas. There are countless differences between the two modes of transportation. The most important, which merits little mention by the Court, is their radically different land-use requirements. The scale of infrastructure required and amount of property imperiled by the proposed high-speed train project are orders of magnitude larger— Texas Central itself boasts the project will require nearly three times the amount of concrete used to build Hoover Dam.2 And the extent of impairment to land in and surrounding the path of the proposed train dwarfs the harm early-1900s electric rail posed. These differences matter, of course, because fundamental property rights of many

2 Infrastructure, TEXAS CENTRAL, https://www.texascentral.com/ infrastructure/ (last visited June 10, 2022).

2 hundreds of Texans in and near the train’s planned path hang in the balance. Since time immemorial, the law has ascribed to property rights a unique status. This Court has described them as “fundamental, natural, inherent, inalienable, not derived from the legislature and as preexisting even constitutions.” Eggemeyer v. Eggemeyer, 554 S.W.2d 137, 140 (Tex. 1977). And we have thus accorded property rights the utmost protection. It follows that our precedents demand rigorous judicial scrutiny when construing eminent-domain statutes, particularly those vesting the power in private actors. Strict compliance with all statutory requirements is required. Tex. Rice Land Partners, Ltd. v. Denbury Green Pipeline–Tex., LLC, 363 S.W.3d 192, 198 (Tex. 2012). And in instances of doubt as to the scope of the power, the statute granting such power is “strictly construed in favor of the landowner” and against the would-be condemnor. Id. (quoting Coastal States Gas Producing Co. v. Pate, 309 S.W.2d 828, 831 (Tex. 1958)). The Court today abandons these longstanding principles. By reading statutory terms in isolation and ignoring context, the Court concludes that the proposed high-speed rail system plainly falls within Section 131.012’s scope. Unlike the Court, I harbor serious doubt that it does. I would resolve that doubt in the landowner’s favor, as our precedents require. Because the Court does otherwise, I respectfully dissent. I. Eminent-domain statutes are strictly construed to protect fundamental property rights. “Private property ownership pre-existed the Republic of Texas and the constitutions of both the United States and Texas.” Severance

3 v. Patterson, 370 S.W.3d 705, 709 (Tex. 2012). “Both constitutions protect these rights in private property as essential and fundamental rights of the individual in a free society.” Id. Indeed, preservation of property rights is “one of the most important purposes of government.” Denbury, 363 S.W.3d at 204 (quoting Eggemeyer, 554 S.W.2d at 140); see also Harris Cnty. Flood Control Dist. v. Kerr, 499 S.W.3d 793, 804 (Tex. 2016) (“This Court has repeatedly, recently, and unanimously recognized that strong judicial protection for individual property rights is essential to ‘freedom itself.’” (quoting Denbury, 363 S.W.3d at 204)). Eminent domain—the power to take private property for public use without the owner’s consent—cuts against our deep veneration for individual property rights. And it is an inherently sovereign power. Tex. Highway Dep’t v. Weber, 219 S.W.2d 70, 72 (Tex. 1949) (describing the power of eminent domain as “an inherent attribute of sovereignty” that “exists independent of constitutional provision” and is “inherent in organized society itself”). Because those who possess it wield the power of the State, the delegation of eminent-domain authority to private parties upsets our ordinary structure of government and has the potential to create a host of “troubling constitutional issues.” FM Props. Operating Co. v. City of Austin, 22 S.W.3d 868, 874 (Tex. 2000). This is because private actors who wield the power of eminent domain may have incentives to act contrary to the public interest and are not bound by the systems of accountability to which public officials are subjected. Id. Given the weighty interests at play, this Court has rightly imposed special standards in this context. “In construing statutes that delegate the power of eminent domain, the language used by the

4 legislature may be accorded a full meaning so as to carry out the manifest purpose and intention of the statute, however, the application of the law will be restricted to only those cases clearly falling within its terms.” Burch v. City of San Antonio, 518 S.W.2d 540, 545 (Tex. 1975) (emphasis added). In short, because the exercise of eminent-domain authority—particularly by a private party—is in derogation of the rights of the citizen, “statutes conferring such power are strictly construed in favor of the landowner and against those corporations . . . vested therewith.” Id. II. Texas Central does not “clearly fall within” Section 131.012’s scope. The Court reasons that Texas Central is a corporation vested with eminent-domain authority under Section 131.012 because its proposed project is an “electric railway” and will travel between Dallas and Houston. Ante at 11. To be sure, Texas Central will literally employ “electric railway” and will do so “between municipalities.” But our analysis cannot end there.

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James Fredrick Miles v. Texas Central Railroad & Infrastructure, Inc. and Integrated Texas Logistics, Inc., (Tex. 2022).

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