Thomas v. United States

106 Fed. Cl. 467, 2012 WL 3800764
CourtUnited States Court of Federal Claims
DecidedAugust 29, 2012
DocketNos. 10-54L, 10-459L
StatusPublished
Cited by15 cases

This text of 106 Fed. Cl. 467 (Thomas 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
Thomas v. United States, 106 Fed. Cl. 467, 2012 WL 3800764 (uscfc 2012).

Opinion

OPINION AND ORDER

FIRESTONE, Judge.

In this “Rails-to-Trails” case, plaintiffs allege that they own property in Shelby Coun[473]*473ty, Tennessee, through which CSX Transportation, Inc. and its predecessors ran a railroad right-of-way. Plaintiffs claim that the defendant (“the government”) affected a taking of their reversionary property interests in the railroad right-of-way when the government approved the conversion of the subject rail line to a recreational trail pursuant to the “railbanking” provision of the National Trails System Act Amendments of 1983, 16 U.S.C. § 1247(d) (2006) (“Trails Act”). Plaintiffs are now seeking just compensation under the Takings Clause of the Fifth Amendment for the alleged taking associated with the government’s actions under the Trails Act.

Pending before the court are the parties’ cross-motions for partial summary judgment as to the respective property interests of plaintiffs, and as to whether there has been a taking of plaintiffs’ property interests. For the reasons discussed below, the Thomas plaintiffs’ motion for partial summary judgment is GRANTED, the Crews plaintiffs’ motion for partial summary judgment is GRANTED-IN-PART and DENIED-IN-PART, and the government’s cross-motion for partial summary judgment is GRANTED-IN-PART and DENIED-IN-PART.

I. BACKGROUND

A. The Trails Act and Regulatory Framework

Congress enacted the Trails Act to address the national problem of a reduction in rail tracks. Preseault v. Interstate Commerce Comm’n, 494 U.S. 1, 5, 110 S.Ct. 914, 108 L.Ed.2d 1 (1990) (“Preseault I”). The Trails Act authorizes the Surface Transportation Board (“STB”) to preserve railroad rights-of-way not currently in use for possible future rail use by converting those rights-of-way into recreational trails. Id. at 5-6, 110 S.Ct. 914. This process is called “rail-banking.” Caldwell v. United States, 391 F.3d 1226, 1228-29 (Fed.Cir.2004).

The STB’s approval of railbanking and recreational trail use are authorized in connection with the STB’s abandonment approval authority. Id. Before a railroad corridor may be converted into a recreational trail, the railroad must either initiate abandonment proceedings with the STB under 49 U.S.C. § 10903 (where the railroad has recently had operating train service) or seek an exemption from the ordinary abandonment procedures under 49 U.S.C. § 10502 (where the railroad has had no local rail service for at least two years). Barclay v. United States, 443 F.3d 1368, 1371 (Fed.Cir.2006). Under either procedure, abandonment of the rail line and right-of-way will not be approved by the STB if a qualified trail operator 1 submits to the STB a request to use the right-of-way as a recreational trail.

If the trail operator submits a statement of willingness to assume financial and legal responsibility to the STB and the railroad, the STB will, in the ease of an operating railroad, issue a Certificate of Interim Trail Use or Abandonment (“CITU”) which preserves the STB’s jurisdiction over the rail corridor while the parties negotiate an interim trail use and railbanking agreement. See 49 C.F.R. § 1152.29(c). In eases involving the exemption procedure, such as the present case, the STB issues a Notice of Interim Trail Use (“NITU”), which also preserves the STB’s jurisdiction over the rail corridor, allows the railroad to discontinue operations and remove track and equipment, and affords the railroad and the trail provider 180 days to negotiate a railbanking and interim trail use agreement. Caldwell, 391 F.3d at 1229-30; 49 C.F.R. § 1152.29(d). If an agreement is not reached, the railroad may abandon the right-of-way, at which time the STB’s jurisdiction over the right-of-way terminates. 49 C.F.R. § 1152.29(d). If the parties reach an agreement, trail use is automatically authorized, and the trail provider assumes managerial and financial responsibility for the right-of-way as a recreational trail. Caldwell, 391 F.3d at 1229.

[474]*474The effect of the NITU, if a rail-banking and interim trail use agreement is reached, is that the STB retains jurisdiction over the rail corridor, and the abandonment of the corridor is blocked even though conditions for abandonment are otherwise met. Id. The STB’s issuance of a NITU prevents abandonment of the right-of-way and in some cases, forestalls the reversion of state law property interests to the owners of the land adjacent to the right-of-way. Id. Where the issuance of a NITU precludes the vesting of state law reversionary interests, its issuance may constitute a taking of those reversionary interests in violation of the Fifth Amendment. See id. at 1238-34.

B. The Trails Act and the Fifth Amendment

The Takings Clause of the Fifth Amendment provides in relevant part that “private property [shall not] be taken for public use, without just compensation.” U.S. Const. Amend. V. “The Amendment ‘does not prohibit the taking of private property, but instead places a condition on the exercise of that power.’ ” Preseault I, 494 U.S. at 11, 110 S.Ct. 914 (quoting First English Evangelical Lutheran Church of Glendale v. Cnty. of Los Angeles, 482 U.S. 304, 314, 107 S.Ct. 2378, 96 L.Ed.2d 250 (1987)). In eases involving the Trails Act, it is now settled that if the government takes private property by authorizing recreational trail use of a railroad right-of-way, the government must provide just compensation. Preseault I, 494 U.S. at 12-16, 110 S.Ct. 914. The Federal Circuit has determined that a taking occurs upon the issuance of the NITU, where the NITU authorizing recreational trail use effectively extinguishes the state property rights of reversion of the right-of-way to the fee owner. Ladd v. United, States, 630 F.3d 1015, 1019 (Fed.Cir.2010), reh’g denied, 646 F.3d 910 (Fed.Cir.2011).

The Federal Circuit has explained that “Rails-to-Trails” cases present three primary questions:

(1)who owned the strips of land involved, specifically did the Railroad ... acquire only easements, or did it obtain fee simple estates;
(2) if the Railroad acquired only easements, were the terms of the easements limited to use for railroad purposes, or did they include future use as public recreational trails;

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Cite This Page — Counsel Stack

Bluebook (online)
106 Fed. Cl. 467, 2012 WL 3800764, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-united-states-uscfc-2012.