SANDERSVILLE RAILROAD COMPANY v. ROBERT DONALD GARRETT, SR.

Court of Appeals of Georgia·Decided April 15, 2026·No. A26A0274·Published

Opinion

FIRST DIVISION

BARNES, P. J.,

MARKLE and HODGES, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed.

https://www.gaappeals.us/rules

April 15, 2026

In the Court of Appeals of Georgia A26A0274, A26A0275. GARRETT et al. v. SANDERSVILLE RAILROAD COMPANY et al.; and vice versa.

BARNES, Presiding Judge.

These companion appeals are taken from the trial court’s affirmance of the Georgia Public Service Commission (“PSC”)’s approval of the Sandersville Railroad Company’s petition to obtain the privately owned land at issue by condemnation. On appeal in Case No. A26A0275, members of the Garrett, Smith, Reed, and Briggs families (“the landowners”) argue that the trial court erred in affirming the PSC’s decision because the proposed taking is not an authorized “public use” and because the PSC violated the law in making its findings and conclusions. In the cross-appeal, Case No. A26A0274, the Railroad argues that the trial court erred when it stayed the enforcement of its order pending appeal. We affirm in both cases.

A superior court is authorized to reverse or modify the final decision of the PSC only under the circumstances laid out in the Georgia Administrative Procedures Act, OCGA § 50-13-1 et seq., as follows:

The court shall not substitute its judgment for that of the agency as to the weight of the evidence on questions of fact. The court may affirm the decision of the agency or remand the case for further proceedings. The court may reverse or modify the decision if substantial rights of the appellant have been prejudiced because the administrative findings, inferences, conclusions, or decisions are: (1)[i]n violation of constitutional or statutory provisions; (2) [i]n excess of the statutory authority of the agency; (3) [m]ade upon unlawful procedure; (4)

[a]ffected by other error of law; (5) [c]learly erroneous in view of the reliable, probative, and substantial evidence on the whole record; or (6)

[a]rbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.

OCGA § 50-13-19 (h) (emphasis supplied). “Under the APA, the Commission is the finder of fact and weighs the credibility of the evidence,” and the trial court “shall not substitute its judgment for that of the [Commission] if there is any evidence to support its findings.” Ga. Pub. Serv. Comm’n. v. Southern Bell, 254 Ga. 244, 246 (327 SE2d 726) (1985) (on appeal from a superior court’s grant of an interlocutory injunction as to a PSC decision) (citation modified).

Thus viewed in favor of the PSC’s decision, the record shows that the Railroad is a “short-line” company operating 10 miles of track in Sandersville, about 25 miles from Sparta. The Railroad currently provides switching services connecting businesses to the Norfolk Southern rail system and to the proposed route for the so- called “Hanson Spur,” a new line that would run from the Hanson Quarry to the CSXT rail system. The Spur would require a 200-foot swath across the landowners’ property, some of which has remained in these families for decades and which they use for living, farming, timber harvesting, hunting, and other recreating.1 After an unsuccessful effort to buy the properties, the Railroad asked the PSC for permission to proceed with condemnation2 in March 2023 for the “public purpose” of economic redevelopment in Hancock County. The Railroad’s amended

1 For example, a Smith great-grandmother was born into slavery on property now owned by her descendants, and one of the Garretts has lived on his family’s property for 72 of his 76 years.

2 See Ga. Comp. R. and Regs. 515-16-16-.01 - .03 (repealed as of Oct. 20, 2025)

(requiring Commission approval before the filing of a condemnation action concerning the “construction of rail facilities”; if the PSC determines that the condemnation serves a “public purpose,” the railroad is authorized to file a condemnation action in superior court).

petition repeated this claim and added the names of several prospective shippers for the Spur.

After the hearing officer required the Railroad to produce documents as to costs, rates, and community support, a hearing was held in November 2023 at which the landowners’ expert witness pointed out the lack of any economic feasibility study and drew the conclusion that the Spur would take decades to recover its costs and was not economically feasible. In response, the Railroad’s representative provided some capital cost estimates and testified that the company had “a good handle on [its] costs,” that he “feel[s] like [he] knows [his] business,” and that he just “kn[e]w it’s going to work.” In the course of the hearing, the Railroad shifted its justification of the Spur from economic development to providing a “channel[] of trade,” which amounts to a “public use” under OCGA § 22-1-1 (9) (A) (iii) of the eminent domain statutes, OCGA § 22-1-1 et seq., as amended in 2017. See Ga. L. 2017, § 22, p. 774.

After the conclusion of the hearing, the hearing officer filed an “initial decision” that the Spur was necessary for the accommodation of the Railroad’s business, which was “providing the transportation service of connecting industries by rail and connecting rail traffic with larger rail networks.” The hearing officer credited

evidence that without the Spur, the Railroad could not offer connections with the CSXT rail system, and that five of its current and prospective customers wanted the service proposed by construction of the Spur. The hearing officer also found that the Spur was “reasonably expected to have cash flow sufficient to continue as an ongoing concern” and that it would amount to a public use, both as an aid in the functioning of a public utility and as a channel of trade.

The PSC affirmed, adopting the hearing officer’s decision in its entirety. Both parties filed for judicial review by the Fulton County Superior Court, which also affirmed the PSC’s decision, finding (inter alia) that the Spur was necessary for the proper accommodation of the Railroad’s business; that the Spur served a “public purpose” because it would provide for the functioning of the Railroad as a utility, “and separately because it will open a channel of trade” (emphasis in original); and that the PSC’s decision was consistent with the law. The trial court continued its earlier stay of any further condemnation proceedings pending further appeal, however, “out of an abundance of caution” and given “the great impact upon [the landowners] and their homesteads[.]”

The landowners then appealed to the Supreme Court of Georgia, which transferred the cases to this Court. See OCGA § 50-13-20 (providing for appellate “review of any final judgment of the superior court” under the APA). In its transfer order, our Supreme Court specifically found that the landowners had “made no challenge to the constitutionality of any statute, ordinance, or constitutional provision” and that the trial court “did not construe – or perform any independent analysis of the original public meaning of – any constitutional provision[.]” We therefore limit our analysis to the statutory questions ruled on by the trial court. See Woods v. State, 310 Ga. 358, 359 (850 SE2d 735) (2020).

Case No. A26A0275

1. The landowners first argue that the PSC and the trial court erred in finding that the Spur amounts to a “public use” sufficient to justify condemnation. This assertion requires us to consider the extensive statutory context.

Under OCGA § 46-8-120 (a), a railroad is authorized

(1) To reconstruct its lines or tracks, to build one or more additional main tracks, to relocate any line or portions of a line, and to build, as a substitute for trestles, embankments upon which tracks may be laid or to widen cuts where necessary for proper construction or maintenance;

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