Smiley First, LLC v. Department of Transportation

Massachusetts Supreme Judicial Court·Decided May 23, 2023·No. SJC 13300·Published

Opinion

A.M.NOTICE: All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports. If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA, 02108-1750; (617) 557- 1030; SJCReporter@sjc.state.ma.us

SJC-13300 SMILEY FIRST, LLC vs. DEPARTMENT OF TRANSPORTATION.

Suffolk. November 4, 2022. – May 23, 2023.

Present: Budd, C.J., Gaziano, Lowy, Cypher, Kafker, Wendlandt, & Georges, JJ.

Easement. Eminent Domain, Extent of taking. Real Property, Easement. Railroad.

Civil action commenced in the Superior Court Department on January 24, 2020.

The case was heard by Paul D. Wilson, J., on motions for summary judgment.

The Supreme Judicial Court on its own initiative transferred the case from the Appeals Court.

Paul L. Feldman (Shawn M. McCormack also present) for the plaintiff.

Kendra Kinscherf, Assistant Attorney General, for the defendant.

Ben Robbins & Daniel B. Winslow, for New England Legal Foundation, amicus curiae, submitted a brief.

Deborah J. La Fetra, of California, Sam Spiegelman, of Washington, & Jonathan M. Houghton, for Pacific Legal Foundation, amicus curiae, submitted a brief.

GEORGES, J. In this case, we consider whether an easement taken by eminent domain in 2018 (2018 easement) by the defendant, the Department of Transportation (MassDOT), exceeded the scope of an easement taken in 1991 (1991 easement) by MassDOT's predecessor in interest, the Department of Public Works (DPW), with respect to certain land in the South Boston section of Boston (burdened land) that presently is owned by the plaintiff, Smiley First, LLC (Smiley).

DPW's 1991 order of taking (1991 taking) created an easement over the burdened land for purposes of "the relocation of the facilities of the Consolidated Rail Corporation [(Conrail)]," which were going to be displaced by construction of a haul road for the Central Artery/Tunnel Project, also known as the "Big Dig."1 In 2017, the Massachusetts Bay Transportation Authority (MBTA) announced plans to construct a test track and a 6,000 square foot building for newly purchased subway cars (Red Line test track project) on the portion of Smiley's land burdened by the 1991 easement. MassDOT then recorded the 2018 confirmatory order of taking (2018 taking), which provides that it is to confirm and, "to the extent necessary to establish such

1 The Central Artery/Tunnel Project rerouted the Central Artery, a portion of Interstate Route 93 that ran through the city of Boston on an elevated highway, to an underground tunnel. DPW and Massachusetts Bay Transportation Authority operated together on the Big Dig project. MassDOT is the lawful successor to DPW in accordance with G. L. c. 6C.

rights, acquire[]" an easement "for railroad purposes" that include the Red Line test track project.

Based on its contention that the 2018 taking merely confirmed rights that it already held under the 1991 taking, MassDOT refused to pay Smiley any compensation for the 2018 taking, and this litigation ensued. On the parties' cross motions for partial summary judgment, a Superior Court judge determined, in reliance on his understanding that easements taken by eminent domain are not subject to the ordinary rules of interpretation of easements, that the 1991 easement was a grant to use the entire area of the easement for "any 'railroad purpose,'" including the Red Line test track project, and, accordingly, that Smiley was due no compensation as a result of the 2018 taking.

We hold that, while the intent of the parties is not to be considered when an easement is taken by eminent domain, the ordinary rules of interpretation for easements otherwise apply. Thus, the "scope of the condemnor's use of the easement will be limited to the extent reasonably necessary for the purpose served by the taking, so that the landowner's right to use the easement area is as great as possible while remaining reasonably consistent with the purpose of the taking." General Hosp. Corp. v. Massachusetts Bay Transp. Auth., 423 Mass. 759, 764 (1996). Applying this principle here, we conclude that the 1991 easement

was more limited in scope than the 2018 easement and, in particular, did not encompass a use such as the Red Line test track project. Therefore, the summary judgment in favor of MassDOT must be reversed, and the matter remanded to the Superior Court for a determination of the appropriate compensation due Smiley.2 1. Background. We summarize the undisputed facts set forth in the motion judge's decision on the parties' cross motions for partial summary judgment, supplemented by other uncontroverted facts in the summary judgment record. See Williams v. Board of Appeals of Norwell, 490 Mass. 684, 685 (2022).

a. Smiley's property. In 2015, Smiley acquired an 18,088 square foot parcel of land at the intersection of B Street and Cypher Street in South Boston. Approximately 12,510 square feet of that property comprise the burdened land at issue here, which is contained within one of the parcels, parcel 60-E-RR-1, subject to the 1991 taking.

b. 1991 taking. In 1991, DPW laid out a limited access State highway, known as the South Boston Haul Road (haul road), to support construction of the extension of Interstate Route 90 to the proposed third harbor tunnel, as part of the Central

2 We acknowledge the amicus briefs by the New England Legal Foundation and the Pacific Legal Foundation.

Artery/Tunnel Project. Construction of the haul road was a massive enterprise that affected over 1 million square feet of land spread across twenty-eight parcels owned by multiple different owners.

To acquire property for the haul road, the 1991 taking took in fee simple approximately 400,000 square feet of land occupied by Conrail, which is not at issue in this appeal. Because this action displaced Conrail's rail operations, the order also established easements on several neighboring parcels, including over 12,510 square feet of parcel 60-E-RR-1, so that Conrail could relocate its railroad operations there. Specifically, the order provides:

"In connection with the laying out of the State highway hereinbefore described, it is necessary to relocate portions of railroad rights of way and land is hereby acquired for said relocation as follows:

"Easements are hereby taken in parcels 60-E-RR-1, 60-E-RR-

5, and 60-E-RR-6, shown on the plan hereinafter referred to, for the relocation of facilities of the Consolidated Rail Corporation, including all trees and structures located thereon . . . .

"Said easements (i) shall be used for railroad purposes only, (ii) shall not be used for the storage of any hazardous materials, hazardous wastes or hazardous substances other than in connection with the extension of Interstate Route 90 or the reconstruction of Interstate Route 93, and (iii) shall be subject to the rights of the owner of the underlying fee as hereinafter provided. . . .

"Said railroad easements are acquired in limited vertical dimension only, said area being limited to a height of [twenty feet, six inches] above the top of the rails to be placed thereon. Included in the easements, however, is the

unlimited right to utilize the air rights above [twenty feet, six inches] for twelve (12) years following the date of recording of this taking. Thereafter, the use of said easements shall be subject to the rights of the owner of the air rights so reserved to use the area subject to the easements as reasonably may be required, subject to the approval of the party or parties having the benefit of the easements, for access to and to support the uses of the air rights."

This order by its terms defined the 1991 easement, and, pursuant to it, Conrail subsequently relocated its main line to a single track that crosses land, now part of Smiley's property, that is burdened by the 1991 easement.

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