Kansas City Southern Railway Co. v. Arkansas Louisiana Gas Co.

476 F.2d 829
CourtCourt of Appeals for the Tenth Circuit
DecidedMarch 27, 1973
DocketNo. 72-1369
StatusPublished
Cited by2 cases

This text of 476 F.2d 829 (Kansas City Southern Railway Co. v. Arkansas Louisiana Gas Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kansas City Southern Railway Co. v. Arkansas Louisiana Gas Co., 476 F.2d 829 (10th Cir. 1973).

Opinion

ORIE L. PHILLIPS, Circuit Judge.

The Kansas City Southern Railway Company1 and the Fort Smith and Van Burén Railway Company2 brought this action against the Arkansas Louisiana Gas Company.3 The two railways will be referred to collectively as the Railway Companies.

By the Act of February 27, 1893, the predecessor of the Southern Railway Company was “invested and empowered with the right of locating, constructing, operating, using, and maintaining a railroad, telegraph, and telephone line through the Indian Territory, * * * with the right to construct, use, and maintain such tracks, turnouts, sidings, and extensions as said company may deem its interest to construct along and upon the right of way * * 27 Stat. 487.

The pertinent parts of § 2 of such Act read as follows:

“SEC. 2. That said corporation is authorized to take for all uses of a railroad, telegraph, and telephone line, and for no other purposes, a right of way one hundred feet in width through said Indian Territory, * * * with the right to use additional grounds where there are heavy cuts or fills as may be necessary for [831]*831the construction and maintenance of the roadbed, * * And provided further, That no parts of the lands herein authorized to be taken shall be leased or sold by the company, and they shall not be used except in such manner and for such purpose only as shall be necessary for the construction and convenient operation of said railroad, telegraph, and telephone line, and when any portion thereof shall cease to be used, such portion shall revert to said nation or tribe of Indians from which the same shall have been taken.”

By the Act of March 3, 1899, 30 Stat. 1368, the predecessor of the Fort Smith Railway Company was “invested and empowered with the right of locating, constructing, owning, equipping, operating, using, and maintaining a railway and telegraph and telephone line through the Choctaw and Creek nations, in the Indian Territory, * *

“SEC. 2. That said corporation is authorized to take and use for all purposes of a railway and telegraph and telephone line, and for no other purpose, a right of way one hundred feet in width through the said Choctaw and Creek nations * * * Provided further, That no part of the lands herein authorized to be taken shall be leased or sold by the company, and they shall not be used except in such manner and for such purposes only as shall be necessary for the construction and convenient operation of said railroad, telegraph, and telephone lines, and when any portion thereof shall cease to be so used, such portion shall revert to the Choctaw Nation or Creek Nation.”

By the Act of April 26, 1906, 34 Stat. 137, the railroad companies which had acquired railroad rights of way through the Indian Territory were authorized to acquire the fee titles to the lands over which they had rights of way, under rules and regulations to be prescribed by the Secretary of the Interior, at a valuation to be determined by him, but such Act provided that if the railroad companies failed to make payment of the amount so fixed within the time prescribed in the regulations, title thereto “shall thereupon vest in the owner of the legal subdivision” adjoining such rights of way.4

It will be observed that in the Act of April 26, 1906, Congress characterizes a railroad right of way as “in the nature of an easement.”

These cases, which were consolidated for trial, had their genesis when the Gas Company constructed 12 gas pipelines under the Railway Companies’ rights of way.

The Gas Company brought a state court condemnation proceeding against each of the Railway Companies to acquire the right to lay 12 gas pipelines under the rights of way of the Railway Companies, but below any part of the rights of way being used for railroad purposes.

Estimated compensation was deposited by the Gas Company in each of the state court condemnation proceedings, and it [832]*832obtained orders of possession pursuant to which the 12 gas pipelines were constructed. The Railway Companies did not accept such deposits and the Gas Company withdrew them and dismissed the condemnation proceedings without prejudice.

Prior to boring the holes for the gas pipelines, the Gas Company had paid the owners of the servient estates an agreed amount for the right to install gas pipelines underneath the rights of way of Railway Companies.

After it had installed the 12 gas pipelines under the Railway Companies’ rights of way and had dismissed its condemnation proceedings, the Gas Company later installed two larger gas pipelines thereunder.

The standard practice where gas pipelines are laid under a railroad right of way is to dig an open ditch on each side of the right of way, to, but not into the right of way, and then bore a hole under the right of way and beneath any construction or use made of it by the railroad company, from one ditch to the other. That practice was followed with respect to the first gas pipelines constructed under the Railway Companies’ rights of way. However, each of the other two crossings was for larger pipelines and open trenches were dug on the rights of way, and the pipelines laid beneath the surface of the rights of way and beneath any subsurface construction or any use made of the rights of way by the Railway Companies, and were both backfilled. The entrance of the Gas Company onto the surface of the rights of way was of short duration and did not interfere in any way with the use by the Railway Companies of their respective rights of way.

The court found that the installation of the gas pipelines did not interfere in anywise with the Railway Companies’ construction, operation, maintenance or use of their respective railroads, telegraph and telephone lines, cuts, fills, and other structures. That finding is amply supported by the evidence and is not clearly erroneous.

The gas pipelines might have interfered if they had been installed under tracks, in cuts, but that would be such an entirely impractical place to install a gas pipeline that we may assume that none of the pipelines here involved were installed under tracks, in cuts, of the Railway Companies.

In the Southern Railway Company’s action against the Gas Company, the Railway Company alleged in its first cause of action that it had the right to the exclusive possession and occupancy of the 100-foot right of way strip; that without authority, permission or license so to do, the Gas Company in three separate locations dug, excavated and constructed its gas pipelines “over, across and under” the Railway Company’s right of way, and caused the Railway Company damages in the amount of $7,500; and that the Railway Company was entitled to triple that amount by reason of the Gas Company’s wilful trespass.

In its second cause of action, the Southern Railway Company sought punitive damages in the amount of $15,000, by reason of the Gas Company’s alleged intentional, wilful, oppressive, fraudulent and malicious trespass; and in its third cause of action it sought recovery of $7,500, because of the additional expense it had to incur to make proper inspection of the gas pipelines.

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Bluebook (online)
476 F.2d 829, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kansas-city-southern-railway-co-v-arkansas-louisiana-gas-co-ca10-1973.