Santa Fe Pacific Railroad Company v. Secretary of the Interior

830 F.2d 1168, 265 U.S. App. D.C. 284, 1987 U.S. App. LEXIS 13595
CourtCourt of Appeals for the D.C. Circuit
DecidedOctober 9, 1987
Docket84-5440
StatusPublished
Cited by5 cases

This text of 830 F.2d 1168 (Santa Fe Pacific Railroad Company v. Secretary of the Interior) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Santa Fe Pacific Railroad Company v. Secretary of the Interior, 830 F.2d 1168, 265 U.S. App. D.C. 284, 1987 U.S. App. LEXIS 13595 (D.C. Cir. 1987).

Opinion

Opinion for the Court filed by Circuit Judge SPOTTSWOOD W. ROBINSON, III.

SPOTTSWOOD W. ROBINSON, III, Circuit Judge:

The Department of the Interior denied an application by Santa Fe Pacific Railroad Company (Santa Fe) for a patent covering 14,632.72 acres of land in Arizona. 1 This ruling was upheld by the District Court 2 and Santa Fe appeals. We find that the Department and the District Court misconstrued a provision of a 1955 statute known as the Recordation Act, 3 which required the registration of certain unperfected rights to land. We accordingly reverse.

*1170 I. Background

In order to “secure the safe and speedy transportation of the mails, troops, munitions of war, and the public stores” 4 to the West, Congress passed a series of statutes in the mid-nineteenth century giving railroad companies rights to public land adjacent to their lines. 5 One such statute, typical of efforts to attract westward development by land grants, was enacted in 1866. 6 This statute incorporated the Atlantic and Pacific Railroad Company (A & P), the predecessor of Santa Fe, 7 and bestowed upon it a right of way to construct a railroad and telegraph line along a route of its choosing from Springfield, Missouri, to the Pacific coast. 8 The statute also created two strips of territorial land, one on each side of the line, and gave A & P “every alternate section of public land, not mineral, designated by odd numbers, to the amount of twenty alternate sections per mile.” 9 The boundaries of grants of this kind have come to be known as “place limits,” and in exchange for this land Congress reserved the use of the line for the benefit of the United States on whatever terms it saw fit to impose. 10

Congress recognized, however, that in some instances earlier rights, such as homestead claims, would prevail over the railroad’s interest in place lands. The statute thus conferred a right of substitution in those situations, providing that “other lands shall be selected by said company in lieu thereof, under the direction of the Secretary of the Interior,” from an additional area of public land bounded by what are *1171 known as “indemnity limits” — two additional strips, each ten miles wide, adjoining the place-limit strips. 11 Thus, to the extent that any deficiency in land within the place limits remained in consequence of superior rights, land within the indemnity limits was to be made available to A & P. 12

In 1872, A & P filed a plat with the Secretary of the Interior designating the location of its line, thereby establishing its right to place land. 13 Because preexisting claims took precedence over some of the place land, A & P, in 1887, chose 1,244,160 acres of indemnity land. The selection was rejected, however, because the Department of the Interior had not surveyed the land within the indemnity limits, which, according to the Department, rendered it “not subject to selection” at that time. 14 Nonetheless, A & P began to contract with other parties to sell its interests in land granted to it by the 1866 Act. One such transaction ripened into a sale of 21,488 acres within Yavapai County, Arizona, within the indemnity limits — the land now in dispute— to the predecessors of Perrin Properties, Inc., 15 which was consummated by a deed duly recorded in Arizona. 16 Ten years later, this land was included in Prescott National Forest. 17

In 1914, Perrin petitioned the Department for an order compelling Santa Fe, the successor to A & P, to select the indemnity lands that had been sold to Perrin’s predecessors in compliance with the terms of the 1896 contract of sale. 18 The Department, noting in passing that some of this land still had not been surveyed, ruled that it had no jurisdiction to adjudge a contract dispute between private parties. 19

No further legal activity by the parties occurred prior to 1940, when Congress passed the Transportation Act 20 to alleviate the growing burden on railroads from supplying the Government with transportation at below-market rates. 21 This legislation allowed railroads that had received land grants from the Government to aid in the construction of their lines to charge the Government full commercial rates, on the condition that the railroads released any claim against the Government arising under railroad-construction acts. 22 The Act stated specifically, however, that it was not to be construed to “prevent the issuance of patents confirming the title to such lands as the Secretary of the Interior shall find have been heretofore sold by any such carrier to an innocent purchaser for value.” 23

*1172 Santa Fe took advantage of this statute by filing a release of its claims. 24 As required by the Department’s regulations, Santa Fe listed all of its sales to innocent purchasers for value, including the 1896 deed to predecessors of Perrin. 25 The Department accepted and approved both the release and the list. 26

Yet another hiatus in the activities of the parties, this one lasting 28 years, followed the filing of the release. During the interim, in 1955, Congress passed the 1955 Recordation Act, which required reporting within two years of certain unperfected claims to land, including “lieu selection ... right[s].” 27 The land sold to Perrin’s predecessors was not registered under the Act.

In 1969, Perrin asked for a cash payment from the Department for the land in issue. 28

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Bluebook (online)
830 F.2d 1168, 265 U.S. App. D.C. 284, 1987 U.S. App. LEXIS 13595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/santa-fe-pacific-railroad-company-v-secretary-of-the-interior-cadc-1987.