PBR Group LLC v. Soo Line Railroad Company

CourtDistrict Court, C.D. Illinois
DecidedSeptember 30, 2024
Docket4:23-cv-04153
StatusUnknown

This text of PBR Group LLC v. Soo Line Railroad Company (PBR Group LLC v. Soo Line Railroad Company) is published on Counsel Stack Legal Research, covering District Court, C.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PBR Group LLC v. Soo Line Railroad Company, (C.D. Ill. 2024).

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF ILLINOIS ROCK ISLAND DIVISION

PBR GROUP, LLC d/b/a TUGGERS a/k/a ) TUGGERS BURGER & ALE HOUSE, ) ) Plaintiff, ) ) v. ) Case No. 4:23-cv-04153-SLD-JEH ) SOO LINE RAILROAD COMPANY d/b/a ) CANADIAN PACIFIC, ) ) Defendant. )

ORDER Before the Court are Defendant Soo Line Railroad Company d/b/a Canadian Pacific’s (“CPKC”) Motion to Dismiss Plaintiff’s Amended Complaint, ECF No. 28, and Plaintiff PBR Group, LLC d/b/a Tuggers a/k/a Tuggers Burger & Ale House’s (“Tuggers”) Motion for Leave to File Over-Sized Memorandum, ECF No. 32. For the following reasons, the motions are GRANTED. BACKGROUND1 In 2016, Tuggers purchased a restaurant and bar (the “Restaurant”) located on a parcel of land that abuts or abutted the Mississippi River at 201 N. Main Street, Port Byron, Illinois. According to Tuggers, in approximately 1860, the Sterling Rock Island Railroad Company obtained, through condemnation, a right-of-way across the parcel of land. Tuggers further alleges that in 1902, A.J. Brewster conveyed parts of real estate lots west of the right-of-way to the Chicago, Milwaukee & St. Paul Railway.

1 When reviewing a motion to dismiss, the court “accept[s] all facts alleged in the complaint as true and draw[s] all reasonable inferences from those facts in favor of the plaintiff.” Smith v. Dart, 803 F.3d 304, 309 (7th Cir. 2015). The factual background is drawn from the Amended Complaint, ECF No. 27. The Restaurant, previously called It’s On The River, operated continuously from 2006 to 2016. In 2006, It’s On The River obtained a permit from the Army Corps of Engineers and installed a dock to allow boaters to access the Restaurant from the water. After acquiring the Restaurant in 2016, Tuggers spent a significant amount of money to remodel the Restaurant and obtained a second permit from the Army Corps of Engineers to install an additional dock.2 To

allow its patrons to access the Restaurant from the docks, It’s On The River, and later Tuggers, made a pedestrian crossing across the railroad tracks without authorization from CPKC. Tuggers caters to boaters and relies on income generated during the boating season. As a “boater-driven business,” at least sixty-five percent of Tuggers’s business involves customers using its docks. Am. Compl. ¶¶ 13–14, ECF No. 27. Tuggers, like many businesses and homeowners whose real estate abuts the Mississippi River, as well as the general public who wish to access the river, must cross CPKC’s railroad tracks to access docks, houses, businesses, and the river itself. Tuggers alleges that “[t]he vast majority of these crossings are unrestricted and/or unpermitted.” Id. ¶ 15. CPKC’s trains travel through Port Byron once a day, generally in

the morning when Tuggers is not open, five or six days per week. In January 2023, Tuggers was informed that CPKC objected to (1) alleged water runoff from the Restaurant and (2) the use of the “illegal crossing” by the public and Tuggers’s patrons. Id. ¶ 17.B. Tuggers responded by changing its water drainage system and stated that it would support signage or other reasonable safety features to make the crossing safer. Despite repeated requests from Tuggers to amicably resolve the pedestrian crossing issue, CPKC did not accept

2 Tuggers specifically alleges that Enright Enterprises, the prior owner of It’s On The River, obtained the second permit from the Army Corp of Engineers. The two permits were transferred to Platinum Property Investments, Inc., which then transferred the permits to Tuggers. For purposes of resolving the pending motion to dismiss, the material facts are that Tuggers possesses two dock permits from the Army Corp of Engineers, one issued in 2006 and one issued in 2016. the solutions offered by Tuggers. On September 9, 2023, Tuggers learned from the utility company that CPKC intended to install a fence just a few feet away from Tuggers’s back door, running the length of the Restaurant. Tuggers alleges that this “action [by CPKC] appears to be vindictive in nature” because CPKC is not installing a fence along any other properties in Port

Byron. Id. ¶ 21. Tuggers asserts that it holds a right and/or easement to use the pedestrian crossing and its docks because (1) “the permitted docks and/or the Restaurant are land locked by virtue of CPKC’s obtaining a right-of-way, the conveyance in 1902, and/or the permitting of the two docks”; (2) “CPKC is estopped from denying access to the pedestrian crossing because it allowed, with full knowledge, use of and improvements of the docks, Restaurant, and pedestrian crossing from 2006 to 2023”; and (3) “Tuggers has the right to access its docks through riparian rights that existed prior to the severance of the real estate and/or currently holding such rights and/or public easement of navigation allowing access of the banks of a navigable waterway.” Id. ¶ 22 (capitalization altered).

On September 14, 2023, Tuggers filed a complaint against CPKC in state court. Compl., Not. Removal Ex. A, ECF No. 1-1. The action was removed to federal court on September 19, 2023. Not. Removal, ECF No. 1. Tuggers moved for a preliminary injunction, see ECF Nos. 9– 10, which the Court denied on September 26, 2023. Tuggers filed an amended complaint on February 5, 2024, seeking declaratory relief, damages for tortious interference with existing and prospective business relations, and temporary and permanent injunctions. CPKC moves to dismiss Tuggers’s amended complaint, arguing that Tuggers possesses no legal property right to the land abutting the Mississippi River and no easement across CPKC’s railroad tracks. See generally Mem. Supp. Mot. Dismiss, ECF No. 29. DISCUSSION I. Legal Standard A complaint must contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). “To survive a motion to dismiss, a

complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). When deciding a Rule 12(b)(6) motion to dismiss, a court accepts all well-pleaded factual allegations as true and draws all reasonable inferences in favor of the nonmoving party. Kap Holdings, LLC v. Mar-Cone Appliance Parts Co., 55 F.4th 517, 523 (7th Cir. 2022). Legal conclusions that contain threadbare recitals of the elements of a claim are not entitled to a presumption of truth. Id. “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678. A complaint must contain more than “labels and conclusions” or “naked assertions devoid of further factual enhancement.” Id.

(quotation marks and alterations omitted). II. Analysis CPKC argues that Tuggers’s claims fail as a matter of law because CPKC owns the real property on the river, and thus CPKC—not Tuggers—possesses riparian rights. Additionally, CPKC asserts that Tuggers does not and cannot allege any type of easement that would allow Tuggers or its patrons to cross CPKC’s property without authorization. CPKC also argues that because Tuggers’s claims implicate and interfere with rail transportation, those claims are preempted by the Interstate Commerce Commission Termination Act (“ICCTA”), 49 U.S.C. § 10101–16106.

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PBR Group LLC v. Soo Line Railroad Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pbr-group-llc-v-soo-line-railroad-company-ilcd-2024.