Toscano v. United States

107 Fed. Cl. 179, 2012 U.S. Claims LEXIS 1440, 2012 WL 5873673
CourtUnited States Court of Federal Claims
DecidedNovember 20, 2012
DocketNo. 08-910
StatusPublished
Cited by8 cases

This text of 107 Fed. Cl. 179 (Toscano 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
Toscano v. United States, 107 Fed. Cl. 179, 2012 U.S. Claims LEXIS 1440, 2012 WL 5873673 (uscfc 2012).

Opinion

OPINION

BRUGGINK, Judge.

This is a class action brought by Utah landowners who assert that the imposition of a recreational trail on their land constitutes an uncompensated taking under the Fifth Amendment of the United States Constitution. Plaintiffs contend that, but for the Surface Transportation Board’s (“STB”) issuance of a Notice of Interim Trail Use pursuant to section 8(d) of the National Trails System Act, 16 U.S.C. § 1247(d) (2006) (the “Trails Act”), they would have had full use of the surface of their property, because the easements supporting the railroad line would have been extinguished by operation of state law. We certified the class in 2011. Tosca-no v. United States, 98 Fed.Cl. 152 (2011). Pending are the parties’ cross-motions for summary judgment and plaintiffs’ motion to dismiss the claims of certain plaintiffs. The matter is fully briefed, and we heard oral argument on July 11, 2012. The parties subsequently filed supplemental proposed findings of fact and a stipulation. For the reasons set out below, we grant in part and deny in part plaintiffs’ motion for partial summary judgment on liability and grant plaintiffs’ motion for partial summary judgment on the proper methodology to determine the amount of just compensation. We grant plaintiffs’ motion to dismiss certain plaintiffs’ claims, although we do so with prejudice. We grant in part and deny in part defendant’s cross-motion for summary judgment.

BACKGROUND

Plaintiffs own real estate in Weber and Davis Counties, Utah, that underlies or abuts an approximately 24 mile long railroad right-of-way. This right-of-way was owned, as of 2002, by Union Pacific Railroad Company (“Union Pacific”), whose predecessor in interest acquired the rights-of-way through five different instruments in the 1880’s. The parties were able to stipulate that four of these, the Forbes Condemnation, the Hooper Condemnation, the Smith Condemnation, and the Williams Deed, all conveyed easements to Union Pacific which were limited to railroad purposes. The parties were unable to agree as to the nature of the grants acquired by the railroad through a State of Utah Patent. Plaintiffs contend that the latter instrument created an easement for railroad purposes only. Defendant contends that the easement was for a general right-of-way, which might permit recreational trail use.

Unlike many other Rails-to-Trails cases this court has heard recently, this one has a unique history, and one which the United States believes leads to no taking. The relinquishment of Union Pacific’s common carrier obligations was preceded by a sale of all but a portion of the railroad’s interest in the easement. The process began on January 17, 2002, with execution of a “Purchase and Sale Agreement Between Union Pacific Railroad and Utah Transit Authority” (“Agreement”). The Utah Transit Authority (“UTA”) is a public transit district under Utah law.1 Under the terms of the Agreement, Union Pacific sold all of its interest in the right-of-way at issue,2 subject to its retention of “an exclusive easement for freight railroad purposes upon, over, under and across the Section 3.2 Properties, as more particularly provided in the Quitclaim Deed(s).” Def.’s Pr. Findings Ex. 2 at US000478.3 In effect, Union Pacific split its [182]*182interest in two: it transferred to UTA the entire easement along with physical improvements it had built, including the right to operate “possible” passenger service, but it retained for itself the right to conduct a freight line, the extent of which would be defined more clearly in the quitclaim deeds.

On January 28, 2002, UTA filed a notice of exemption with the STB, the federal agency with responsibility for, among other things, regulating and licensing common carrier train service. The filing gave notice of the Agreement but simultaneously asserted that the STB did not have jurisdiction to approve or disapprove the Agreement because the only aspect of service on the line over which the STB would otherwise have jurisdiction, freight service, was specifically omitted from the sale. Union Pacific was retaining those obligations. On May 22, 2002, the STB issued a decision dismissing the notice, in effect endorsing UTA’s position that the sale was beyond its jurisdiction. The parties refer to this two-step process of splitting the right-of-way and obtaining the agreement of the STB that it is immune from STB jurisdiction as a “State of Maine transaction,” named after the state in which a ruling by the Interstate Commerce Commission, predecessor agency to the STB in this respect, first endorsed the practice. See discussion infra.

On September 16, 2002, the railroad consummated the Agreement with UTA by executing two quitclaim deeds. One deed transferred the property in Weber County, and the other deed transferred the property in Davis County. Def.’s Supplemental Pr. Findings Ex. 7 (Weber); Def.’s Supplemental Pr. Findings Ex. 8 (Davis).4 The freight easement retained by Union Pacific in each instrument, however, was a slice from the middle of the underlying easements. It was limited to the following area:

only the portion of the Property located within twelve and one-half feet (12.5’) on either side of the center line of the railroad tracks on the Property ... and the right to construct, maintain and operate freight rail sidings and related facilities upon, all other portions of the Property as reasonably necessary for [Union Pacific’s] use and enjoyment of the [Freight] Easement.

Def.’s Supplemental Pr. Findings Ex. 7 at US002662; see also Def.’s Supplemental Pr. Findings Ex. 8 at US002682. In other words, the retained freight easement was 25 feet wide on center, while the underlying easement that was transferred was either 66 or 100 feet wide.

Union Pacific thereafter filed a notice of exemption with the STB, seeking authority to abandon its common carrier obligations with respect to the railroad line. In a decision on December 2, 2002, the STB agreed to the abandonment exemption. The decision noted that the “physical assets of the line, including the real property interests and track structure” were previously sold to UTA and that Union Pacific had only “retained an exclusive perpetual easement and common carrier obligation on the line to conduct freight operations.” Def.’s Pr. Findings Ex. 6 at US00105 n. 1. The STB decision noted that this “retained easement will expire upon consummation of the instant abandonment exemption.” Id.

UTA subsequently filed with the STB a request for issuance of a Notice of Interim Trail Use (“NITU”) for the railroad line from “[Mile Post] 754.31 near Valencia [to] approximately [Mile Post] 778.00 near Ogden.” Pis.’ Pr. Findings Ex. K at l.5 UTA’s letter notified STB that it “seeks rail banking and interim trail use on the Subject Line” and that it would take responsibility for the management, liability, and fees that attended “the right-of-way owned by Utah Transit Authority and operated by Union Pacific Company.” Id. at 2. The letter made no distinction as to what part of the easement would be converted to trail use; it merely referred [183]*183without specificity to the “Subject Line” and the “right-of-way.”

The STB issued the NITU on December 31, 2002, pursuant to authority granted by section 8(d) of the Trails Act. 16 U.S.C.

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Cite This Page — Counsel Stack

Bluebook (online)
107 Fed. Cl. 179, 2012 U.S. Claims LEXIS 1440, 2012 WL 5873673, Counsel Stack Legal Research, https://law.counselstack.com/opinion/toscano-v-united-states-uscfc-2012.