Phipps v. United States

126 Fed. Cl. 674, 2016 U.S. Claims LEXIS 347, 2016 WL 1688450
CourtUnited States Court of Federal Claims
DecidedApril 26, 2016
Docket14-424L
StatusPublished
Cited by1 cases

This text of 126 Fed. Cl. 674 (Phipps 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
Phipps v. United States, 126 Fed. Cl. 674, 2016 U.S. Claims LEXIS 347, 2016 WL 1688450 (uscfc 2016).

Opinion

Trails Act; Takings Claims; Cross-Motions for Partial Summary Judgment.

OPINION

HORN, J.

FINDINGS OF FACT

' Plaintiffs are landowners in the town of Farragut, Iowa, who allege that they are entitled to receive just compensation under the Fifth Amendment to the United States Constitution because the United States government effected a taking of them reversion-ary property interests by operation of the National Trails System . Act, 16 U.S.C. § 1241, et. seq. (2012) (the Trails Act). Plaintiffs remaining in the case 1 include David and Paula Brownlee, Monte Jay Moyer, Rita Foster, Thomas A Ingram and Amanda Hinds, Jerry Lee Nicholas, Jeremy T. and Jennifer L. McAllister, Virginia Farm Company, James and Gloria Dalrymple, Richard K., Roger and Lisa Phipps, C.S. Johnson Family Limited Partnership, Dorothy Walter Trust, and Timothy and Shawna Dreyer.

The Burlington Northern Santa Fe Railway Company (BNSF) previously operated a railroad that extended, in part, for approximately six miles between milepost 20,06 outside of Shenandoah, Iowa to milepost 26.0 outside of Farragut, Iowa. This 5.96-mile railroad corridor is at the center of the dispute in the above-captioned case. Plaintiffs allege that they each owned property adjoining the railroad corridor on which the railroad operated between milepost 20.06 and milepost 26.0, and that BNSF owned an easement for railroad purposes that laid across the property owned by plaintiffs. Plaintiffs allege that BNSF’s easement for railroad purposes was extinguished when railroad operations on the railroad corridor ceased, and, as a result, plaintiffs’ right to possess the land unencumbered by the easement should have reverted back to them. Plaintiffs further allege that defendant’s actions under the Trails Act prevented such a reversion. Defendant challenges the adjacency of certain of these parcels to the railroad corridor and argues that BNSF actually held certain portions of the railroad corridor in fee simple, rather than as a mere easement. With regard to the remaining parcels at issue, however, the government concedes that these parcels adjoined portions of the railroad corridor over which BNSF held only easements for railroad purposes. Defendant states that it does not object to the entry of partial summary judgment finding it liable for takings with regard to these parcels, but argues that the takings were limited to easements for the preservation of rail service.

*679 In February 2012, BNSF intended to abandon the 5.95-mile railroad corridor at issue and sought abandonment authorization from the United States Surface Transportation Board (STB). On February 21, 2012, BNSF submitted a Petition for Exemption to the STB seeking to exempt “BNSF’s abandonment of a 5.95-mile rail line located in Page and Fremont Counties, Iowa” from “the prior approval requirements of 49 U.S.C. § 10903.” In its petition, BNSF explained that “BNSF owns a 5.95-mile rail line between Shenandoah and Farragut in Page and Fremont Counties, Iowa,” and that BNSF intended to “exercise the abandonment authority and convert the portion of the Line between Milepost 20.05 and Milepost 21.90 to industry track and sell the industry track” to the only customer on the line. BNSF proposed “to abandon its rail line located between Milepost 20.05 in Shenandoah and Milepost 26.0 in Farragut, in Page and Fremont Counties, Iowa.” BNSF further stated that there “has been no overhead traffic on the Line for many years and no local traffic on the portion of the Line between Milepost 21.90 and Milepost 26.0 since at least 2007.” In its petition, BNSF also asserted that “[t]he City of Farragut has expressed an interest in railbanking the remainder of the Line within its city limits.” BNSF asserted in its petition that the rail line “does not contain federally granted rights of way.”

In response to a public notice of the proposed abandonment, on March 14, 2012, the Iowa Natural Heritage Foundation (INHF) filed a request to the STB for the “issuance of a Public Use Condition as well as a Certificate or Notice of Interim Trail Use rather than an outright abandonment authorization between milepost 20.05 in Shenandoah and milepost 26.0 in Farragut.” BNSF responded to the INHF’s request and agreed “to negotiate with INHF for interim trail use/ rail banking” as to the segment of the rail line between mileposts 21.90 and 26.0. Thereafter, pursuant to its powers under the Trails Act, the STB issued a Notice of Interim Trail Use (NITU) on June 8, 2012 granting BNSF’s request for an exemption, “subject to public use, trail use, environmental, and standard employee protective conditions.” According to submissions from the parties, BSNF and the INHF have not completed negotiations on a trail use agreement, and the STB has extended the negotiation period to May 18, 2016. Continued negotiations for a trail use agreement, however, do not impact the parties’ cross-motions presently before the court.

Plaintiffs David and Paula Brownlee allege that they owned fee title to land parcel number 420420013000000, including the portion of the property that extends to the centerline of the allegedly abandoned railroad right-of-way, when the alleged taking occurred. Plaintiffs David and Paula Brownlee’s claim is identified as Claim 1 in this case.

Plaintiff Monte Jay Moyer alleges that he owned fee title to land parcel, number 420420014000000, including the portion of the property that extends to the centerline of the allegedly abandoned railroad right-of-way, when the alleged taking occurred. Plaintiff Monte Jay Moyer’s claim is identified as Claim 2 in this case.

Plaintiff Rita Foster alleges that she owned fee title to land parcel number 420420106000000, including the portion of the property that extends to the centerline of the allegedly abandoned railroad right-of-way, when the alleged taking occurred. Plaintiff Rita Foster’s claim is identified as Claim 4 in this case.

Plaintiffs Thomas A. Ingram and Amanda Hinds allege that they owned fee title to land parcel number 420420107000000, including the portion of the property that extends to the centerline of the allegedly abandoned railroad right-of-way, when the alleged taking occurred. Plaintiffs Ingram and Hinds’ claim is identified as Claim 5 in this case.

Plaintiff Jerry Lee Nicholas alleges that he owned fee title to land parcel number 420420185000000, including the portion of the property that extends to the centerline of the allegedly abandoned railroad right-of-way, When the alleged taking occurred. Plaintiff Nicholas’ claim is identified as Claim 8 in this case.

Plaintiffs Jeremy T. and Jennifer L. McAl-lister allege that they owned fee title to land *680 parcel number 420420184000000, including the portion of the property that extends to the centerline of the allegedly abandoned right-of-way, when the taking occurred. Plaintiffs Jeremy T. and Jennifer L. McAllis-ter’s claim is identified as Claim 9 in this case.

Separate from the aforementioned plaintiffs, the parties do not dispute that certain, additional plaintiffs, including Virginia Farm Company (Claim 11), 2

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Cite This Page — Counsel Stack

Bluebook (online)
126 Fed. Cl. 674, 2016 U.S. Claims LEXIS 347, 2016 WL 1688450, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phipps-v-united-states-uscfc-2016.