Pressly v. United States

CourtCourt of Appeals for the Federal Circuit
DecidedApril 30, 2026
Docket24-1823
StatusPublished

This text of Pressly v. United States (Pressly v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pressly v. United States, (Fed. Cir. 2026).

Opinion

Case: 24-1823 Document: 65 Page: 1 Filed: 04/30/2026

United States Court of Appeals for the Federal Circuit ______________________

ROBERT A. PRESSLY, ET AL., Plaintiffs

JASON BREHM, ET AL., Plaintiffs-Appellees

v.

UNITED STATES, Defendant-Appellant ______________________

2024-1823 ______________________

Appeal from the United States Court of Federal Claims in Nos. 1:18-cv-01964-MMS, 1:19-cv-01375-MMS, Senior Judge Margaret M. Sweeney. ______________________

Decided: April 30, 2026 ______________________

MICHAEL JAMES SMITH, Stewart, Wald & Smith, LLC, St. Louis, MO, argued for plaintiffs-appellees. Also repre- sented by STEVEN WALD.

JOHN KENNETH ADAMS, Environment and Natural Re- sources Division, United States Department of Justice, Washington, DC, argued for defendant-appellant. Also represented by AMBER BETH BLAHA, ADAM R.F. GUSTAFSON. Case: 24-1823 Document: 65 Page: 2 Filed: 04/30/2026

______________________

Before MOORE, Chief Judge, CHEN and STARK, Circuit Judges. STARK, Circuit Judge. This appeal arises from a rails-to-trails land conversion in Indiana carried out under the National Trails System Act Amendments of 1983 (the “Trails Act”). Plaintiffs-Ap- pellees own land adjacent to rail corridors on which the Peru and Indianapolis Railroad Company (“PIRC”) histor- ically operated a railroad. Before the Court of Fed- eral Claims, Plaintiffs asserted that they also own the land underlying the rail corridors. On that basis, they argued that the Surface Transportation Boards’s (“STB”) issuance, to PIRC’s successors-in-interest, of Notices of In- terim Trail Use (“NITUs”) – which authorize conversion of the rail corridors for public trail use – constituted a taking of their property without just compensation, in violation of their rights under the Fifth Amendment. The Court of Federal Claims agreed with Plaintiffs. It determined that PIRC’s interests in the rail corridors were limited to easements, which were extinguished when PIRC ceased operating the railroad, thereby causing fee simple title of the land parcels to revert to Plaintiffs under Indiana law. Hence, the court reasoned, the government’s issuance of NITUs to PIRC’s successors, and the plan to use the cor- ridors for trails without providing just compensation to Plaintiffs, resulted in an unconstitutional taking. The government now appeals. It argues that the Court of Federal Claims erred by determining that PIRC held easements, rather than fee simple title, in the land under- lying the corridors at issue. Because the record demon- strates that PIRC’s interests in the corridors were limited to easements, and Plaintiffs hold fee simple title to the land underlying those corridors, we affirm. Case: 24-1823 Document: 65 Page: 3 Filed: 04/30/2026

PRESSLY v. US 3

I Under the Trails Act, railroad operators may, upon dis- continuing rail service, opt to convert their rail corridors to trails rather than abandon them altogether. See Na- tional Trails System Act Amendments, Pub. L. No. 98-11, § 208(2), 97 Stat. 42, 48 (1983) (codified at 16 U.S.C. § 1247(d)). A railroad operator wishing to pursue such a conversion must seek abandonment authorization from the STB. See 16 U.S.C. § 1247(d); 49 U.S.C. § 10903. When a railroad does so, potential trail sponsors may file a request with the STB expressing interest in establishing an in- terim trail, subject to the potential restoration of rail use in the future. See 49 C.F.R. § 1152.29(a)-(c). If the railroad operator agrees to interim trail use, STB will issue an NITU. See id. at § 1152.29(d)(1). “When an NITU is issued and state law . . . interests that would otherwise take effect pursuant to normal aban- donment proceedings are forestalled,” an unconstitutional Fifth Amendment taking has occurred, unless the holder of the interest receives just compensation. Caldwell v. United States, 391 F.3d 1226, 1236 (Fed. Cir. 2004). For example, a taking occurs when a railroad holds only an easement 1 for railroad purposes that would, under state law, be extinguished upon cessation of railroad operations, yet an NITU creates an easement for trail purposes, pre- venting the fee title to the underlying corridor – which the

1 “[A]n easement merely gives the grantee the right to enter and use the grantor’s land for a certain purpose, but does not give the grantee any possessory interest in the land. . . . Because the grantor of an easement has not trans- ferred his estate or possessory interest, . . . [h]e retains all his ownership interest, subject to an easement.” Marvin M. Brandt Revocable Tr. v. United States, 572 U.S. 93, 105 n.4 (2014) (emphasis added). Case: 24-1823 Document: 65 Page: 4 Filed: 04/30/2026

landowner holds subject to the railroad easement – from becoming unencumbered upon abandonment. If, however, the railroad company holds fee simple title 2 to the land over which the railroad operated, no taking can occur because no third party holds underlying fee simple title that would otherwise become unencumbered upon the railroad’s aban- donment of operations. Here, Plaintiffs allege that STB’s issuance of NITUs re- sulted in unconstitutional takings. In order to prevail on those takings claims, Plaintiffs need to prove that (1) they owned the parcels of land comprising the rail corridors in fee simple; and (2) (a) the railroads’ interests were limited to easements for railroad purposes or (b) if those easements were instead broad enough to encompass trail use, the easements had already terminated prior to the issuance of the NITUs, such that the NITUs encumber Plaintiffs’ fee simple title. See Preseault v. United States, 100 F.3d 1525, 1533 (Fed. Cir. 1996) (en banc). In the Court of Federal Claims, the government disputed Plaintiffs’ showing only with respect to the contention that Plaintiffs hold fee sim- ple title to the contested parcels, subject to the railroads’ property interests, which Plaintiffs insist consisted of ease- ments. On cross-motions for summary judgment, the Court of Federal Claims concluded that the only finding the evidence could reasonably support was that Plaintiffs were correct. Two sets of land parcels are at issue in this ap- peal: (i) those whose ownership depends on interpretation of a 1907 Indiana Circuit Court quiet title judgment, which we, like the parties, call the “Manship Decree” (and the

2 “Fee simple,” or “title in fee simple,” “enables the owner to exercise absolute and exclusive control of it as against all others.” Adams v. Henderson, 168 U.S. 573, 580 (1897). Case: 24-1823 Document: 65 Page: 5 Filed: 04/30/2026

PRESSLY v. US 5

pertinent parcels the “Manship Parcels”); 3 and (ii) those whose ownership relates to a deed, the “Vanlaningham In- strument” (relating to the “Vanlaningham Parcels”). 4 The only issue we must decide is whether the Court of Federal Claims erred in granting summary judgment that Plain- tiffs hold fee simple title in both the Manship and Vanlan- ingham Parcels. The Court of Federal Claims had jurisdiction under 28 U.S.C. § 1491(a)(1). We have jurisdiction under 28 U.S.C.

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Pressly v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pressly-v-united-states-cafc-2026.