Stimson Lumber Company v. United States

United States Court of Federal Claims·Decided May 8, 2020·No. 18-983·Published

Opinion

In the United States Court of Federal Claims No. 16-912L and

No. 16-1565L and No. 18-375L Consolidated No. 18-983L

(Filed: May 8, 2020)

)

PERRY LOVERIDGE, et al., )

)

Plaintiffs, )

)

v. )

) Motion for Summary Judgment; Rails-

THE UNITED STATES, ) to-Trails; Oregon Law; Scope of ) Easements.

Defendant. )

)

_______________________________ )

)

ALBRIGHT, et al., )

)

Plaintiffs, )

)

and )

)

THE UNITED STATES, )

)

Defendant. )

_______________________________ )

)

STIMSON LUMBER COMPANY, )

)

Plaintiff, )

)

and )

)

THE UNITED STATES, )

)

Defendant )

)

Thomas S. Stewart, Kansas City, MO, for Loveridge and Stimson Lumber plaintiffs. Elizabeth G. McCulley, Kansas City, MO, of counsel.

Meghan S. Largent, St. Louis MO, for Albright plaintiffs. Lindsay S.C. Brinton, St. Louis MO, of counsel.

James H. Hulme, Washington DC for Aeder plaintiffs. Laurel LaMontagne, Morgan Pankow, Washington DC, of counsel.

David W. Gehlert, Environment and Natural Resources Division, United States Department of Justice, Washington DC, with whom was Prerak Shah, Acting Deputy Assistant Attorney General, for defendant.

OPINION

FIRESTONE, Senior Judge.

I. INTRODUCTION Now pending in these Trails Act1 cases are the parties’ cross-motions for partial

summary judgment pursuant to Rule 56 of the Rules of the United States Court of Federal Claims (“RCFC”) filed by the plaintiffs in Albright v. United States, Aeder v. United States, Loveridge v. United States, Stimson Lumber v. United States, and the United States (the “government”).2 At issue in the pending motions is the scope of 13 easements that plaintiffs’ predecessors had provided to the Port of Tillamook Bay Railroad

1 The Trails Act “preserve[s] shrinking rail trackage by converting unused rights-of-way to recreational trails.” Presault v. I.C.C., 494 U.S. 1, 5 (1990). The court’s prior opinion contains an extensive explanation of the Trails Act. See Loveridge v. United States, 139 Fed. Cl. 122, 127-29 (2018). 2 The pending motions involve plaintiffs in Albright (Case No. 16-1565L), Aeder (Case No. 18- 375L), Loveridge (Case No. 16-912L), and Stimson Lumber Co. (Case No. 18-983L). Only the Albright and Aeder cases have been consolidated. See Aeder, Case No. 18-375L, ECF No. 10. However, because all four cases concern the same segments of railroad, involve many of the same deeds, and present overlapping arguments, the court is issuing a single opinion. See Loveridge v. United States, 139 Fed. Cl. 122, 127 n.1 (2018).

(“POTB”). The Pacific Railway & Navigation Company (“Railroad”) originally owned the relevant portions of the railway line, but the POTB eventually took ownership of the railroad line. See Loveridge v. United States, 139 Fed. Cl. 122, 129 (2018), recons. partially granted, 2019 WL 495578 (Feb. 8, 2019). A hiking trail, the Salmonberry Trail, is in development on the railway. Loveridge, 139 Fed. Cl. at 129.

Originally, 132 deeds were at issue in these cases. The parties agreed that 18 deeds granted fee simple interests to the POTB and 12 deeds conveyed easements. Of the remaining 102, the court ultimately determined that 89 conveyed a fee simple interest such that POTB owned the property and could transfer its rights to the trail operator of the Salmonberry Trail, without giving rise to a takings claim. Loveridge, 139 Fed. Cl. at 196; Loveridge, 2019 WL 495578 at *64. The court eventually determined that the remaining 13 source deeds conveyed easements, and that, therefore, plaintiffs claiming title under these 13 deeds had a potential claim for compensation based on the Notice of Interim Trail Use (“NITU”) issued by the federal government pursuant to the National Trails System Act, 16 U.S.C. § 1247(d) to allow for creation of the Salmonberry Trail.

The pending motions for partial summary judgment concern 11 of the 13 deeds that the court determined conveyed easements and 1 deed which the parties previously agreed conveyed an easement but for which the parties now disagree on the scope of the easement. The plaintiffs argue that the terms of the 12 source deeds now at issue limit the easements to “railroad purposes,” and therefore, the government interfered with their reversionary interests in the easements by issuing a NITU allowing for the Salmonberry

Trail. Plaintiffs thus contend that the United States is liable for a taking of their reversionary interest and for imposing a new trail easement on their land.

The government argues that the 12 source deeds are broad enough to encompass the rail banking and trail use authorized by the NITU. Under the government’s reading of the deeds, issuance of the NITU did not trigger the plaintiffs’ reversionary interests and plaintiffs are not entitled to compensation for a taking of their reversionary interest or for use of the property as a trail.3 For the reasons discussed below, the parties’ cross-motions are GRANTED-IN-

PART and DENIED-IN-PART.

II. FACTUAL BACKGROUND AND PROCEDURAL HISTORY As discussed in the court’s prior decisions, these cases involve a nearly 80-mile

railroad right of way in Oregon established in 1907 by the Railroad and later obtained by POTB. On July 26, 2016, the Surface Transportation Board (“STB”), an agency of the United States, issued a NITU authorizing railbanking and allowing a trail operator, the Salmonberry Trail Intergovernmental Agency, to establish the Salmonberry Trail along the railway. A railbanking and trail use agreement between POTB and the Salmonberry

3 The parties agree that railbanking and interim trail use is outside the scope of the easement in the following deeds: Alley 9/537, Cummings 79/381, Denni 75/372, Hammond Lumber 23/308, Kilches River Co. 31/228, Kinney 13/196, Larsen 5/133, Miami Lumber Co. 27/440, Smith, Alfred 13/313, Tucker 12/331, Whitney Co. Ltd. 7/84, Jones 94/226, and Portland Timber 107/61. See Loveridge, 139 Fed. Cl. at 130; Albright Def.’s Reply at 1 n.1 (Jones 94/225); Tr. 53:3-8 (Albright, ECF No. 150) (government agreeing that the Portland Timber 107/61 deed (Albright ECF No. 120-6 at 3) has “clear limitation language”). As such the government’s motion regarding the scope of the Portland Timber 107/61 deed is DENIED.

Trail Intergovernmental Agency regarding the relevant railway corridor was entered on October 27, 2017.

In 2017, the parties filed cross-motions for summary judgment regarding 132 deeds. (Albright, ECF Nos. 20, 24; Loveridge, ECF Nos. 27, 34). The parties eventually agreed on the nature of 30 of these 132 deeds, and these initial cross-motions focused on, among other areas of dispute, whether the POTB’s right of way under the remaining 102 deeds was granted in fee or was an easement, whether railbanking and trail use were within the scope of the easements, and the appropriate means of calculating just compensation. For case management purposes, the court first addressed whether the express source deeds conveyed fees or easements. The court’s findings of fact and conclusions of law are set forth in its first opinion issued on August 13, 2018. Loveridge, 139 Fed. Cl. 122. The court concluded that 93 of the deeds conveyed a fee interest to the POTB.

The plaintiffs moved for reconsideration regarding 57 of the deeds. (Albright, ECF No. 58; Loveridge, ECF No. 55). The court issued its opinion on reconsideration on February 8, 2019, in which the court granted the plaintiffs’ motion regarding 4 of the deeds. Thus, the court ultimately concluded that 89 deeds conveyed fees and 13 conveyed easements.4

4 The plaintiffs in Albright, Aeder, and Loveridge appealed to the United States Court of Appeals for the Federal Circuit this court’s judgment regarding 26 of the source deeds that the court determined conveyed fee interest title to the POTB. Fed. Cir. Case Nos. 19-2078, 19-2080, 19- 2316. These appeals are currently pending.

Free access — add to your briefcase to read the full text and ask questions with AI

Stimson Lumber Company v. United States, (uscfc 2020).

Stimson Lumber Company v. United States (Stimson Lumber Company v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

East Alabama Railway Co. v. Doe Ex Dem. Visscher
114 U.S. 340 (Supreme Court, 1885)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Preseault v. Interstate Commerce Commission
494 U.S. 1 (Supreme Court, 1990)
United States v. Royal
174 F.3d 1 (First Circuit, 1999)
Caldwell, Iii v. United States
391 F.3d 1226 (Federal Circuit, 2004)
Tipperman v. Tsiatsos
964 P.2d 1015 (Oregon Supreme Court, 1998)
Kell v. Oppenlander
961 P.2d 861 (Court of Appeals of Oregon, 1998)
Cappelli v. Justice
496 P.2d 209 (Oregon Supreme Court, 1972)
Long v. Sendelbach
641 P.2d 1136 (Court of Appeals of Oregon, 1982)
Watson v. Banducci
973 P.2d 395 (Court of Appeals of Oregon, 1999)
Cotsifas v. Conrad
905 P.2d 851 (Court of Appeals of Oregon, 1995)
State Highway Commission v. Pacific Shore Land Co.
269 P.2d 512 (Oregon Supreme Court, 1954)
Cal-Neva Land & Timber Inc. v. United States
70 F. Supp. 2d 1151 (D. Oregon, 1999)
Criterion Interests, Inc. v. Deschutes Club
902 P.2d 110 (Court of Appeals of Oregon, 1995)
Jones Et Ux v. Edwards Et Ux
347 P.2d 846 (Oregon Supreme Court, 1959)
Bernards v. Link
263 P.2d 794 (Oregon Supreme Court, 1953)
D'ABBRACCI v. Shaw-Bastian
117 P.3d 1032 (Court of Appeals of Oregon, 2005)
Motes v. PacifiCorp
217 P.3d 1072 (Court of Appeals of Oregon, 2009)
Boyer v. United States
123 Fed. Cl. 430 (Federal Claims, 2015)