Stimson Lumber Company v. United States

CourtUnited States Court of Federal Claims
DecidedAugust 6, 2021
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.

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Stimson Lumber Company v. United States, (uscfc 2021).

Opinion

In the United States Court of Federal Claims No. 18-983L (Filed: August 6, 2021)

) STIMSON LUMBER COMPANY, ) ) Rails-to-Trails; Attorneys’ Fees and Plaintiff, ) Costs; 42 U.S.C. § 4654; Lack of ) Success; Reasonable Hours; v. ) Reasonable Rate; Reasonable Costs ) THE UNITED STATES, ) ) Defendant. ) )

Thomas S. Stewart, Kansas City, MO, for plaintiff. Elizabeth G. McCulley, Kansas City, MO, and Steven M. Wald and Michael J. Smith, St. Louis, MO, of counsel.

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

OPINION ON ATTORNEYS’ FEES AND COSTS

FIRESTONE, Senior Judge.

Pending before the court in this Fifth Amendment takings case is plaintiff Stimson

Lumber Company’s motion for attorneys’ fees and costs. Stimson Lumber owns 17

parcels adjacent to a former railroad that operated in Oregon. Compl. ¶ 6, ECF No. 1;

Mot. at 1, ECF No. 52. Stimson Lumber asserts that the actions of the Surface

Transportation Board in issuing a Notice of Interim Trail Use pursuant to the National

Trails System Act, 16 U.S.C. § 1247(d), constituted a taking of its property rights.

Compl. ¶¶ 7-13. Following summary judgment briefing, the parties have tentatively

settled this case and agreed on $47,000 plus interest as total compensation. See Resp. at 4, ECF No. 56. The proposed settlement is currently being reviewed by officials at the

Department of Justice. See Joint Status Report Order, ECF No. 59.

Stimson Lumber now moves for attorneys’ fees and costs under the Uniform

Relocation Assistance and Real Property Acquisition Policies Act (“URA”), 42 U.S.C. §

4654(c). Mot. at 1. Stimson Lumber seeks an award of $168,262.69 in attorneys’ fees

for 507.1 hours of work by three partners and two paralegals, as well as $37,697.87 in

incurred costs. Id. at 7, 19. The government opposes the motion, arguing that the

claimed hours, hourly rates, and costs are unreasonable and should be substantially

reduced. See Resp. at 1-2.

For the reasons that follow, the court concludes that Stimson Lumber is entitled to

an award of attorneys’ fees and costs determined in accordance with the instructions set

out in this opinion. The court finds that some of Stimson Lumber’s requested fees and

costs are compensable, while others are not. Stimson Lumber’s motion is accordingly

GRANTED IN PART and DENIED IN PART.

I. BACKGROUND

On July 10, 2018, Stimson Lumber filed this rails-to-trails takings case. See

Compl. ¶ 2. Stimson Lumber alleged that the government took its property interests in 17

parcels without just compensation in violation of the Fifth Amendment when an 81-mile

rail corridor in Washington and Tillamook Counties, Oregon was converted to trail use

after the Surface Transportation Board issued a Notice of Interim Trail Use on July 26,

2016, pursuant to the National Trails System Act. Id. ¶¶ 2-13.

2 Stimson Lumber’s case was the last of four related cases alleging takings of

property along the subject rail corridor. Resp. at 2. The first of those cases, Loveridge v.

United States, No. 16-912L, was filed on August 1, 2016. Resp. at 2. The Loveridge

plaintiffs are represented by the same counsel as Stimson Lumber: Thomas S. Stewart,

Elizabeth G. McCulley, and Steven M. Wald, of the Kansas City, Missouri law firm

Stewart, Wald & McCulley, LLC. The other two related cases are Albright v. United

States, No. 16-1565L, and Aeder v. United States, No. 18-375L, which have been

consolidated and have different counsel. By the time Stimson Lumber filed its complaint

on July 10, 2018, the parties in Loveridge and Albright had already briefed and argued

the question of whether the 102 deeds at issue in those cases granted fee interests or

easements to the railroad. See Loveridge v. United States, 139 Fed. Cl. 122, 127-30

(2018). Stimson Lumber’s claims involved 8 of those 102 deeds. Resp. at 2.

For purposes of the pending motion, the parties agree that this case can be broken

into phases. See Mot. at 11; Resp. at 20-27. Phase 1 spans from May 4, 2018 through

July 1, 2019.1 Mot. at 11; see also id., Ex. A (billing entries); Notice, Ex. 1, ECF No. 60

(exhibits to the government’s response, including billing entries). During Phase 1,

Stimson Lumber filed its complaint, implicating 8 of the deeds at issue in the briefing

already completed in Albright and Loveridge. Resp. at 2. The court then issued its

summary judgment decision in Albright and Loveridge, holding that 89 of the 102 deeds

1 The government states that Phase 1 begins on May 14, 2018, Resp. at 20 n.27, but the billing entries begin on May 4, 2018, Mot., Ex. A at 1; Notice, Ex. 1 at 1, ECF No. 60. The court therefore begins Phase 1 on May 4, 2018.

3 at issue conveyed a fee simple interest that would not support a takings claim.2 Resp. at

2-3; see Loveridge, 139 Fed. Cl. at 132-196. Following that decision, Stimson Lumber

voluntarily dismissed its claims for 6 of its 17 parcels, leaving 11 parcels at issue. Mot.

at 11; Resp. at 20-22.

Phase 2, from July 2, 2019 through September 13, 2019,3 is a short three-month

period involving additional negotiations between the parties about the effect of the

court’s summary judgment decision in Albright and Loveridge. Stimson Lumber

voluntarily dismissed its claims for an additional 3 parcels during this phase, leaving 8

parcels still at issue. Mot. at 11; Resp. at 22-23.

During Phase 3, from September 14, 2019 through May 12, 2020,4 the parties

briefed and the court issued its opinion on the scope of the easements for the remaining

claims in all four related cases, including Stimson Lumber’s claims for its 8 remaining

2 After the Loveridge and Albright plaintiffs moved for reconsideration of this decision, the court granted reconsideration for 4 deeds. See Loveridge v. United States, No. 16-912L, 2019 WL 495578, at *64 (Fed. Cl. Feb. 8, 2019). The court’s decisions were later affirmed by the United States Court of Appeals for the Federal Circuit. See Albright v. United States, 838 F. App’x 512, 514 (Fed. Cir. 2020), petition for cert. filed, 2021 WL 3072909 (U.S. July 19, 2021) (No. 21-71). 3 The government states that Phase 2 begins on July 1, 2019, Resp. at 22 n.28, but acknowledges in its exhibits that Phase 1 ends on July 1, 2019, and Phase 2 begins on July 2, 2019, Notice, Ex. 1 at 15. The court therefore begins Phase 2 on July 2, 2019. 4 Stimson Lumber ends Phase 3 on May 8, 2020, Mot. at 11, but includes billing entries through May 12, 2020 that involve the summary judgment briefing and decision at issue during this time period, see Resp. at 20 n.26; Mot., Ex. A at 21. Therefore, the court ends Phase 3 on May 12, 2020.

4 parcels.5 Stimson Lumber prevailed on its claims regarding 5 of the 8 remaining parcels

(and was unsuccessful as to 3 parcels). Mot. at 11; Resp. at 23-25.

Phase 4, from May 13, 2020 through March 15, 2021,6 encompasses Stimson

Lumber’s supplemental motion for summary judgment arguing that the easements at

issue for the unsuccessful 3 parcels had been abandoned prior to the issuance of the

Notice of Interim Trail Use. Mot. at 11-12; Resp. at 25-27. The court denied this

supplemental motion. Id.; see also Loveridge v.

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