Stimson Lumber Company v. United States

CourtUnited States Court of Federal Claims
DecidedMay 8, 2020
Docket18-983
StatusPublished

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

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

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). 2 (“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

3 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. 4 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

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