Louisville & Indiana Railroad Company v. Indiana Gas Company

829 N.E.2d 7, 2005 Ind. LEXIS 532
CourtIndiana Supreme Court
DecidedJune 15, 2005
Docket03S01-0401-CV-9
StatusPublished
Cited by13 cases

This text of 829 N.E.2d 7 (Louisville & Indiana Railroad Company v. Indiana Gas Company) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisville & Indiana Railroad Company v. Indiana Gas Company, 829 N.E.2d 7, 2005 Ind. LEXIS 532 (Ind. 2005).

Opinion

SHEPARD, Chief Justice.

Almost continually from the time of statehood, building Indiana's economy has necessitated constructing networks for the transport of people and product, energy and communications. This litigation centers on one of perhaps thousands of points at which these networks intersect. A railroad contends that a gas company which has laid pipe along a county road that crosses the tracks owes rent to the railroad for passing underneath. We conclude that rent is not owed.

Facts and Case History

The basic facts are not controverted. County Roads 550 North and 400 South in Bartholomew County each cross tracks of the Louisville & Indiana Railroad Company ("Railroad"). These tracks rest on fee or right-of-way owned by the Railroad. Indiana Gas Company, Inc. ("Indiana Gas"), a public utility, installed gas pipelines following the county right-of-way along the two roads, thus crossing under the Railroad's tracks. The Railroad says that Indiana Gas installed the pipe without consent from or compensation to the Railroad.

The Railroad filed a four-count complaint: (1) trespass; (2) license rent; (8) quantum meruit; and (4) quantum vale-bant. The parties filed cross-motions for *9 summary judgment on the trespass and license rent claims. The trial court concluded that the Railroad owned an easement and held that one could not by definition commit trespass against the holder of an easement. Thus, it granted partial summary judgment in favor of Indiana Gas on the trespass claim. The court dismissed the remainder of the case based on its conclusion that jurisdiction over the Railroad's claims otherwise lay with the Indiana Utilities Regulatory Commission under Indiana Code § 8-1-2-5, referred to by the parties as the "Joint Use Statute." The parties cross-appealed, and the Court of Appeals reversed and remanded for a trial on the merits. Louisville. & Indiana R.R. Co. v. Indiana Gas Co., 792 N.E.2d 885, 892 (Ind.Ct.App.20083) vacated. We grant transfer.

The order in which the parties' contentions should be approached is a matter of some substance. We have approached them in what seems to be the best diposi-tive order.

I. What Does the Railroad Own?

The litigants have joined in extensive debate over whether the Railroad's interest in the land at issue is fee simple or merely an easement, and the rulings in the trial court and the Court of Appeals reflect this emphasis. The nature of the Railroad's ownership, the parties say, drives several of the issues presented. For example, does one owe rent to the owner of a mere right-of-way? Or, does application of the Joint Use Statute vary depending on the nature of the Railroad's interest?

This debate presents interesting questions of legal history. The Railroad's operation predates by several decades the adoption of general statutes on railroads and corporations. Its corporate form and powers flow from legislative charters originally granted to "the Ohio and Indianapolis Rail Road Company" in 1832 and from later legislative acts affecting the operation of that company and its successors. 1 The legislature wrote statutes about the Railroad three times before expressly authorizing "fee simple" ownership of property. The deeds at issue in this case were acquired during the interval. Counsel thus contest whether references in those deeds to the powers of the charter should be read as giving only an easement and whether the third statute was "remedial" as we understand that doctrine today.

It is difficult to imagine the creation of such a substantial enterprise as a railroad without buying land in fee, but knowing with confidence whether this was so would require considerable effort. The meaning of these intertwined Nineteenth Century documents turns as much on custom and practice as it does on Twenty-First Century rules of construction. While information on such matters is knowable, it is not surprising that the scale of the present litigation has made it diseconomic for the parties to pursue such an investigation.

These intriguing matters would certainly be central to resolving, say, a dispute between grantee and grantor, but that is not the nature of the litigation before us. In the end, we conclude that the statutory regimes applicable to this dispute lead to the same outcome regardless of the nature of the Railroad's ownership interest.

IL Dismissal for Lack of Jurisdiction

The Railroad seeks compensation for the use of its real estate interest under the theories of license, quantum meruit *10 and quantum valebant. The trial court determined that the Joint Use Statute, Indiana Code § 8-1-2-5, governed these claims. That conclusion prompted it to dismiss for lack of subject matter jurisdiction, saying that the proper venue for determining what might be at stake was the Indiana Utility Regulatory Commission.

Both parties assault this holding. The Railroad appeals the dismissal and the trial court's failure to find that, pursuant to the statute, Indiana Gas should have sought permission from the Railroad before installing its pipe under the Railroad's tracks and must now pay reasonable compensation. Indiana Gas appeals the trial court's determination that the installation of its pipe beneath the railroad tracks constituted a "joint use" of the Railroad's facilities within the meaning of the statute.

The Joint Use Stafute at the heart of this debate provides:

Every public utility, and every municipality, and every person, association, limited liability company, or corporation having tracks, conduits, subways, poles, or other equipment on, over, or under any street or highway shall for a reasonable compensation, permit the use of the same by any other public utility or by a municipality owning or operating a utility, whenever public convenience and necessity require such use, and such use will not result in irreparable injury to the owner or other users of such equipment, nor in any substantial detriment to the service to be rendered by such owners or other users.

Ind.Code Ann. § 8-1-2-5(a) (West 2001)(emphasis added). The same section provides a method for resolving disputes about particular joint uses or about compensation for such uses. The language describing this procedure is helpful in defining the statute's overall purpose:

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Cite This Page — Counsel Stack

Bluebook (online)
829 N.E.2d 7, 2005 Ind. LEXIS 532, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisville-indiana-railroad-company-v-indiana-gas-company-ind-2005.