Preseault v. United States

24 Cl. Ct. 818, 23 Envtl. L. Rep. (Envtl. Law Inst.) 20391, 1992 U.S. Claims LEXIS 2, 1992 WL 2115
CourtUnited States Court of Claims
DecidedJanuary 8, 1992
DocketNo. 90-4043L
StatusPublished
Cited by10 cases

This text of 24 Cl. Ct. 818 (Preseault v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Preseault v. United States, 24 Cl. Ct. 818, 23 Envtl. L. Rep. (Envtl. Law Inst.) 20391, 1992 U.S. Claims LEXIS 2, 1992 WL 2115 (cc 1992).

Opinion

OPINION

NETTESHEIM, Judge.

This case is before the court after argument on cross-motions for partial summary judgment. Congress enacted the National Trails System Act, 16 U.S.C. §§ 1241-1251 (1988), which effected use of a former railroad right-of-way as a bicycle path. Plaintiffs, who claim reversionary interests in the right-of-way, contend that the right-of-way consisted of railroad easements that had been abandoned and that consequently the Government took their property without just compensation under authority of the National Trails System Act. The court must determine the nature of the property interests held by plaintiffs and the extent that these are present interests rather than future interests under the law of Vermont.

FACTS

The following facts are undisputed. Plaintiffs J. Paul and Patricia Preseault (“plaintiffs” or “the Preseaults”)1 own a fee simple interest in land near the shore of Lake Champlain in Burlington, Vermont. That land is shown as parcel A on the map below. The railroad right-of-way shown on the map by hatch marks is the subject of dispute of this litigation.2 If the section of the right-of-way on the west side of parcel A were an easement, as plaintiffs have claimed, then parcel A would extend to the middle of the right of way as shown on the map. However, if this part of the right-of-way were a fee simple interest owned by defendant Vermont, as both defendants claim, then parcel A would extend only to the east ridge of the right-of-way.

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The Preseaults are the sole general and limited partners of 985 Associates, Ltd. (“plaintiff 985 Associates”), a Vermont limited partnership with its principal place of business at 985 North Avenue, Burlington, Vermont. Plaintiff 985 Associates has received a quitclaim deed to the parcel shown on the map as parcel B. Parcel B is entirely within the right-of-way. Plaintiff 985 Associates also owns a fee simple interest in at least those parts of the “Manwell parcel,” shown on the map, that lie outside of the railroad right-of-way. Plaintiffs assert that the part of the right-of-way across the Manwell parcel is an easement and that plaintiff 985 Associates owns the fee underlying the easement and the reversionary interest in the easement. However, defendants assert that Vermont owns the right-of-way across the former Manwell parcel in fee simple.

In 1898 the General Assembly of the State of Vermont chartered the RutlandCanadian Railroad Company (“Rutland-Canadian Railroad”), a corporation organized under the laws of Vermont. An Act To Incorporate the Rutland-Canadian Railroad Company, 1898 Vt.Acts No. 160 (“the Charter”). Section 1 of the Charter stated that the Rutland-Canadian Railroad would

have and enjoy the right of eminent domain and shall have full power to connect with, sell or lease to, or consolidate with, or to acquire by purchase or lease, and to operate any other railroad within or without this state, and may lay out, construct and maintain a railroad ... may build, erect and maintain suitable and convenient branches, buildings, stations, fixtures, machinery, sidetracks and terminal facilities, and other appurtenances ... may receive, take, hold, purchase, use and convey such real and per[821]*821sonal estate as is necessary or proper in the judgment of such corporation, for the construction, maintenance and accommodation of such railroad ... as the purposes of the corporation may require____

Specifically, the General Assembly delegated to Rutland-Canadian Railroad the power to acquire a right-of-way to construct and operate a railroad connecting the City of Burlington, Vermont, with the town of Alburgh, Vermont. Trustees of the Diocese of Vermont v. State of Vermont, 145 Vt. 510, 511, 496 A.2d 151, 152 (1985).

In 1899 Rutland-Canadian Railroad exercised that power of eminent domain to acquire a railroad right-of-way across the land owned by the William H. Barker Estate. Since the Estate and Rutland-Canadian Railroad were unable to agree to a price for damages, the right-of-way was transferred to Rutland-Canadian Railroad by commissioner’s award, which found “damage to the said owners of said land occasioned by such location, entry and occupation by the said Company [RutlandCanadian Railroad] ... at the sum of four hundred & fifty dollars.”

In 1899 Rutland-Canadian Railroad also acquired a right-of-way by warranty deed from Mr. and Mrs. Frederick Manwell. The deed stated that the Manwells, for the consideration of $80.00, “do give, grant, bargain, sell and confirm unto the said grantee [Rutland-Canadian Railroad] a certain piece or parcel of land lying and being in Burlington in the County of Chittenden and State of Vermont.” The tract of land described is part of the railroad right-of-way in which plaintiffs claim a reversionary interest.

In 1920 Congress passed a series of amendments to the Interstate Commerce Act, which addressed, in part, the role of the Interstate Commerce Commission (the “ICC”) in regulating the abandonment of railroad lines under its jurisdiction. The amendments state, in pertinent part:

(18) After ninety days after this paragraph takes effect ... no carrier by railroad subject to this Act shall abandon all or any portion of a line of railroad, or the operation thereof, unless and until there shall first have been obtained from the Commission a certificate that the present or future public convenience and necessity permit ... such abandonment.
(19) The application for and issuance of any such certificate shall be under such rules and regulations as to hearings and other matters as the Commission may from time to time prescribe, and the provisions of this Act shall apply to all such proceedings____
(20) The Commission shall have power to issue such certificate as prayed for, or to refuse to issue it, or to issue it for a portion or portions of a line of railroad, or extension thereof, described in the application, or for the partial exercise only of such right or privilege, and may attach to the certificate such terms and conditions as in its judgment the public convenience and necessity may require. From and after issuance of such certificate, and not before, the carrier by railroad may, without securing approval other than such certificate, comply with the terms and conditions contained in or attached to the issuance of such certificate and proceed with the construction, operation, or abandonment covered thereby....
(21) The authority of the Commission conferred by paragraphs (18) to (21), both inclusive, shall not extend to the construction or abandonment of spur, industrial, team, switching or side tracks, located or to be located wholly within one State, or of street, suburban, or interurban electric railways, which are not operated as a part or parts of a general steam railroad system of transportation.

Transportation Act of 1920, ch. 91, § 402, 41 Stat. 456, 477-78 (1920). In passing these amendments, Congress conferred plenary authority on the ICC to issue certificates of abandonment.

In 1962 the ICC authorized the successor to Rutland-Canadian Railroad, Rutland Railway Corporation, to abandon operations in Vermont,

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Bluebook (online)
24 Cl. Ct. 818, 23 Envtl. L. Rep. (Envtl. Law Inst.) 20391, 1992 U.S. Claims LEXIS 2, 1992 WL 2115, Counsel Stack Legal Research, https://law.counselstack.com/opinion/preseault-v-united-states-cc-1992.