PALMETTO CONSERVATION FOUNDATION v. Smith

642 F. Supp. 2d 518, 2009 U.S. Dist. LEXIS 65807, 2009 WL 2251475
CourtDistrict Court, D. South Carolina
DecidedJuly 29, 2009
DocketC.A. 8:08-2738-HMH
StatusPublished
Cited by4 cases

This text of 642 F. Supp. 2d 518 (PALMETTO CONSERVATION FOUNDATION v. Smith) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PALMETTO CONSERVATION FOUNDATION v. Smith, 642 F. Supp. 2d 518, 2009 U.S. Dist. LEXIS 65807, 2009 WL 2251475 (D.S.C. 2009).

Opinion

OPINION & ORDER

HENRY M. HERLONG, JR., Senior District Judge.

This matter is before the court on Palmetto Conservation Foundation’s (“the Foundation”) second motion for partial *521 summary judgment and H.J. Smith’s (“Smith”) motion to lift the preliminary injunction and motion to amend his answer to add a counterclaim alleging claims against the Foundation for wrongful attainment of a preliminary injunction and attorney’s fees. For the reasons set forth below, the Foundation’s motion for partial summary judgment is granted and Smith’s motions to lift the injunction and add a counterclaim are denied.

I. Factual and Procedural Background

During the Nineteenth Century and continuing through the earlier half of the Twentieth Century, the Greenville and Columbia Railroad Company and the Southern Railway Company obtained right-of-ways from landowners in South Carolina for the construction and operation of banked rail transportation corridors. In 1847, Greenville and Columbia Railroad Company acquired the right-of-way on the subject property from Adam Stoudemire (“Stoudemire”). Stoudemire granted to the Greenville and Columbia Railroad Company

[t]he right of way of sufficient width for the track, cuts and embankments of the said road, as also for turn-outs, and all other extensions and enlargements, or repair of the same from time to time, not to exceed 100 feet on each side, with the right to use the earth and stone within the said tract, for the construction, extension or repair of the same road. Provided, that we are to have the right of cultivation of our lands not required by the track and repair of the road; also the right of removing the timber.

(Compl. Ex. E (Right-of-Way).) Later, the Norfolk Southern Railway Company (“Norfolk Southern”) acquired the right-of-way, and thereby became the successor-in-interest to the right-of-way.

By January 1995, segments of the Norfolk Southern rail transportation corridor were no longer in use. Rather than concede the termination of its right-of-ways, Norfolk Southern filed a notice with the United States Surface Transportation Board (“the STB”) seeking an exemption from federal laws regarding abandonment of rail transportation corridors. The exemption was granted, and the rail corridors were considered not to have been abandoned.

At the same time, Norfolk Southern had entered into negotiations with various state governmental agencies regarding the conversion of its rail corridors into public trails. Through the National Trails Systems Act (“Trails Act”), 16 U.S.C. § 1247, Congress expressly authorized the preservation for future use of rail corridors that had ceased from continuous use by converting those corridors into public trails.

In particular, Norfolk Southern negotiated the transfer of an eleven-mile stretch of rail corridor in Newberry County, South Carolina. By quitclaim deed and contract of sale dated August 31, 1999, Norfolk Southern transferred its interest in the eleven-mile corridor to the Foundation for the purpose of trail use until such time as the rail corridor may be reclaimed for active transportation service. (Compl. Ex. B (Deed and Contract of Sale).) The 1999 transfer states that the Foundation received Norfolk Southern’s right-of-way “[sjubject to all restrictions, conditions, easements, licenses, and reservations, whether or not of record.” (Id.) In this manner, the right-of-ways were perpetuated, in some cases, over the objections of the burdened landowners.

In 2003, several of those landowners, including Smith, filed a civil action to set aside the transfer of interest from Norfolk Southern to the Foundation. 1 The land *522 owners alleged that Norfolk Southern’s discontinuation of rail traffic on the corridor amounted to an abandonment of the right-of-way, and that their respective lands were no longer encumbered by the rights that Norfolk Southern once held.

On March 29, 2004, summary judgment was granted for the Foundation. The court held that Norfolk Southern did not abandon its right-of-ways to the rail transportation corridor, and that the STB had the authority to permit the conversion of the rails to trails. In sum, the Foundation was the valid holder of Norfolk Southern’s right-of-ways in the disputed rail corridor.

Smith is the fee simple owner of a parcel of property situated along the old Norfolk Southern rail bank. A portion of the eleven-mile rail corridor running through the town of Peak is situated through Smith’s property. Norfolk Southern’s right-of-way, which the Foundation now holds, hereinafter referred to as the “subject property,” runs for 100 feet on either side of the rail bank as measured from the bank’s centerline and includes a .22-acre parcel known as “the Depot.” (Compl. Ex. A (Property Description).)

The Foundation contends that Smith has engaged in site preparation on the subject property, and that specifically, Smith has cut trees, cleared, and graded land. In his answer, Smith admits that he has “instituted a project at or near the easement in question, which included clearing and grading land, as well as improving drainage.” (Ans. ¶ 10.) Further, in his supplemental affidavit, Smith admitted that he cleared “approximately two-tenths of an acre.” (Smith Suppl. Aff. ¶ 2.) The Foundation wrote to Smith on June 4, 2008, requesting that Smith cease his construction activities. (Compl. Ex. H (June 4, 2008 Letter).) Smith responded in a letter dated June 11, 2008, stating that he “will continue to use this land for my benefit until and unless the S.C. Supreme Court overrules and reverses the Court decision made in 1918.” (Id. Ex. I (June 11, 2008 Letter).) Further, Smith stated that he “plann[ed] to apply for a permit to build an office building in a commercial zone within 120 feet of the abandoned railroad bed.” (Id.)

In addition, Smith has threatened individuals who have come onto the subject property with prosecution. (Foundation Mem. Supp. Summ. J. 7-8 & Ex. A (Tony Taffar (“Taffar”) Aff., generally).) In a November 28, 2005 letter, Smith requested that “work on this project be delayed until the question of ownership and privilidges [sic] be addressed in the court with proper jurisdiction; this being the circuit court, the appeals court, and the South Carolina Supreme Court.” (Id. Ex. C (November 28, 2005 Letter).) In addition, Smith stated “[t]he laws of South Carolina state that anyone who tresspasses [sic] upon the land of another without the permission of the owner commits a misdemeanor.... It will be embarassing [sic] and detrimental to the land owner, the foundation and to the state of South Carolina should one of your employees or guests be involved in such a ease.” (Id. Ex. C (November 28, 2005 Letter).) The Foundation moved for a preliminary injunction on August 1, 2008.

At the hearing on the motion for preliminary injunction, Smith never denied the conduct or contested the entry of a preliminary injunction against him. The court entered a preliminary injunction on August 14, 2008. Palmetto Conservation filed a motion for summary judgment and a motion for sanctions on November 5, 2008.

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642 F. Supp. 2d 518, 2009 U.S. Dist. LEXIS 65807, 2009 WL 2251475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/palmetto-conservation-foundation-v-smith-scd-2009.