Macy Elevator, Inc. v. United States

97 Fed. Cl. 708, 2011 U.S. Claims LEXIS 517, 2011 WL 1319026
CourtUnited States Court of Federal Claims
DecidedApril 7, 2011
DocketNo. 09-515L
StatusPublished
Cited by57 cases

This text of 97 Fed. Cl. 708 (Macy Elevator, Inc. 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
Macy Elevator, Inc. v. United States, 97 Fed. Cl. 708, 2011 U.S. Claims LEXIS 517, 2011 WL 1319026 (uscfc 2011).

Opinion

OPINION

FIRESTONE, Judge.

The plaintiffs in this class action1 are landowners who claim to own the fee interest in land underlying a previously-operating railroad line of the Norfolk and Western Rail [711]*711Company (“N & W”)2 between milepost I-75.5, near Peru, Indiana and milepost 1-95.6, near Rochester, Indiana. The plaintiffs claim that the defendant (“government”) affected a taking of the plaintiffs’ fee interest in the railroad right-of-way between the mileposts when the government approved conversion of the subject railroad line to a recreational trail pursuant to the “railbank-ing” provision of the National Trails System Act Amendments of 1983, 16 U.S.C. § 1247(d) (“Trails Act”). The plaintiffs claim that by authorizing a recreational trail on the right-of-way the government has established a new easement on their fee land. The plaintiffs are now seeking just compensation pursuant to the Takings Clause of the Fifth Amendment of the United States Constitution for the alleged taking of a new easement associated with the government’s authorization of the recreational trail.

Pending before the court are the parties’ cross-motions for summary judgment as to whether there has been a taking of the plaintiffs’ property interests by virtue of the government’s authorization of a recreational trail on the subject right-of-way.

1. BACKGROUND

A. The Trails Act

Congress enacted the Trails Act to address the national problem of a reduction in rail tracks. Preseault v. Interstate Commerce Comm’n, 494 U.S. 1, 5, 110 S.Ct. 914, 108 L.Ed.2d 1 (1990) (“Preseault I ”). The Trails Act authorizes the Surface Transportation Board (“STB”)3 to preserve railroad corridors or rights-of-way not currently in use for train service for possible future rail use by converting those rights-of-way into recreational trails. Id. at 5-6, 110 S.Ct. 914; 16 U.S.C. § 1241 (2006). In essence, the Trails Act allows a railroad to relinquish responsibility for a rail line by transferring the corridor to an entity that will use it as a recreational trail. Although the corridor is not used as a railroad during the period of interim trail use, it remains intact for potential future use for rail service. This process is called “railbanking.”

Before a railroad corridor may be converted into a recreational trail, the railroad must either initiate abandonment proceedings with STB under 49 U.S.C. § 10903 (2006) (where the railroad has recently had operating train service) or seek an exemption from the ordinary abandonment procedures under 49 U.S.C. § 10502 (2006) (where the railroad has had no local rail service for at least two years).4 Caldwell v. United States, 57 Fed. Cl. 193, 195 (2003) (“Caldwell I”), aff'd, 391 F.3d 1226 (Fed.Cir.2004) (“Caldwell II”). Under either procedure, abandonment of the rail line and right-of-way will not be approved by the STB if a qualified trail provider 5 submits to the STB a request to use the [712]*712right-of-way as a recreational trail. If the trail provider submits a statement of willingness to assume financial and legal responsibility to the STB and the railroad, the STB will, in the case of an operating railroad issue a Certificate of Interim Trail Use or Abandonment (“CITU”) which preserves the STB’s jurisdiction over the rail corridor while the parties negotiate an Interim Trail Use Agreement. See 49 C.F.R. § 1152.29(c) (2010). In cases involving the exemption procedure, such as the present ease, the STB issues a Notice of Interim Trail Use or Abandonment (“NITU”), which also preserves the STB’s jurisdiction over the rail corridor, allows the railroad to discontinue operations and remove track and equipment, and affords the railroad and the trail provider 180 days to negotiate a railbanking and interim Trails Act Agreement. Caldwell II, 391 F.3d at 1229-30; Caldwell I, 57 Fed.Cl. at 195; 49 C.F.R. § 1152.29(d). During this period, the railroad will also negotiate an agreement for the transfer of the corridor to the trail operator.6 “If an agreement is reached, the NITU [or CITU] automatically authorizes the interim trail use. If the [STB] takes no further action, the trail sponsor then may assume management of the right-of-way, subject only to the right of a railroad to reassert control of the property for restoration of rail service.” Caldwell I, 57 Fed.Cl. at 195 (internal citations omitted); see also 49 C.F.R. § 1152.29(d)(2). If an agreement is not reached, the railroad will be allowed to abandon the line, at which time the STB’s jurisdiction over the right-of-way terminates.7

B. The NITU and Trail Use Agreement8

On May 14, 1996, the STB granted an abandonment exemption to N & W covering 38.4 miles of rail line between milepost 1-57.2 and milepost 1-95.6. The Indiana Trails Fund (“ITF”) and Hoosier Rails-To-Trails Council, Inc. had requested issuance of a NITU for this line segment, but the STB authorized the NITU only for the portion of line between 1-57.2 and 1-74.2 because the Indiana Hi-Rail Corporation (“IHRC”) still possessed trackage rights over the segment from 1-74.2 to 1-95.6. The STB stated that because the abandonment process of this latter segment could not be completed until discontinuance of IHRC’s trackage rights was authorized, it would not be appropriate for the STB to issue a NITU for that segment of the line. The STB indicated that it reserved jurisdiction to issue a NITU when IHRC discontinued its trackage rights.

The STB’s 1996 decision stated, “If no trail use condition is sought within 10 days after N & W notifies the trail user of IHRC’s discontinuance, then N & W may complete the abandonment process as to that portion of the line.” N & W did notify ITF of IHRC’s discontinuance of its trackage rights, and N & W and ITF reached a trail use agreement in 1998. However, ITF made no renewed request for a NITU during this period. On January, 29, 1999, N & W transferred its interests in the corridor to ITF by three quitclaim deeds.

On February 17, 2004, ITF submitted to the STB a request for a NITU for the portion of the line between 1-75.5 and 1-95.6, the portion of the line at issue in this case. ITF requested that the “technical defect” of not having obtained a NITU before proceeding with transfer to the trail provider “be remedied.” Pls.’ Prop. Find. Uncont. Fact (“PPFUF”) Ex. E, ECF No. 28-5.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ats Ford Drive Investment, LLC v. United States
136 F.4th 1066 (Federal Circuit, 2025)
Castillo v. United States
Federal Claims, 2023
Abbott v. United States
Federal Claims, 2022
Barlow v. United States
Federal Claims, 2020
Cheung v. United States
Federal Claims, 2019
Brittain v. United States
Federal Claims, 2019
Butler v. United States
Federal Claims, 2018
Loveridge v. United States
Federal Claims, 2018
Menendez v. United States
Federal Claims, 2018
Lucier v. United States
Federal Claims, 2018
Schulenburg v. United States
Federal Claims, 2018
Wade v. United States
Federal Claims, 2018
Yee v. United States
Federal Claims, 2017
Baley v. United States
134 Fed. Cl. 619 (Federal Claims, 2017)
Klamath Irrigation v. United States
134 Fed. Cl. 619 (Federal Claims, 2017)
Gazpromneft-Aero Kyrgyzstan LLC v. United States
132 Fed. Cl. 202 (Federal Claims, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
97 Fed. Cl. 708, 2011 U.S. Claims LEXIS 517, 2011 WL 1319026, Counsel Stack Legal Research, https://law.counselstack.com/opinion/macy-elevator-inc-v-united-states-uscfc-2011.