United States v. Durango & Silverton Narrow Gauge Railroad Company, The

CourtDistrict Court, D. Colorado
DecidedJune 1, 2020
Docket1:19-cv-01913
StatusUnknown

This text of United States v. Durango & Silverton Narrow Gauge Railroad Company, The (United States v. Durango & Silverton Narrow Gauge Railroad Company, The) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Durango & Silverton Narrow Gauge Railroad Company, The, (D. Colo. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Judge Robert E. Blackburn Civil Action No. 19-cv-01913-REB-NRN UNITED STATES OF AMERICA Plaintiff, vs. THE DURANGO & SILVERTON NARROW GAUGE RAILROAD COMPANY, a Colorado Corporation, and AMERICAN HERITAGE RAILWAYS, INC., a Florida Corporation, Defendants. ORDER OVERRULING OBJECTIONS TO AND ADOPTING RECOMMENDATION OF UNITED STATES MAGISTRATE JUDGE Blackburn, J. The matters before me are (1) the recommendation contained within the Report and Recommendation on Defendants’ Partial Motion To Dismiss (Dkt. #8) [#37],1 filed December 27, 2019; and (2) defendants’ Objections to Magistrate Judge’s Report and Recommendation on Defendants’ Partial Motion To Dismiss [#41], filed January 10, 2020. I overrule the objections, approve and adopt the recommendation, and deny defendants’ corresponding motion to dismiss. As required by 28 U.S.C. § 636(b), I have reviewed de novo all portions of the recommendation to which cognizable objections have been filed. I have considered carefully the recommendation, objections, and applicable caselaw. This case presents

1 “[#37]” is an example of the convention I use to identify the docket number assigned to a specific paper by the court’s case management and electronic case filing system (CM/ECF). I use this convention throughout this order. an issue of statutory interpretation made more challenging by the fact that the statute in question, as well as most of the caselaw interpreting it, is more than one hundred years old. The magistrate judge has done yeoman-like work in parsing the parties’ arguments (both as presented in the briefs and at a hearing regarding the motion) and the relevant authorities. He has cogently considered and analyzed the issues raised by and inherent

to the motion. His recommendation is thorough, thoughtful, and, ultimately, persuasive, and I approve and adopt it as an order of this court. The discussion herein is meant merely to supplement, not supplant, his excellent work. The question presented by the instant motion is whether the United States government, as plaintiff, can recover the more than $30 million it expended in fighting the “416 Fire,” a devastating wildfire that burned for six months and destroyed some 53,000 acres of the San Juan National Forest. The government alleges the fire was caused when burning cinders or other hot materials escaped from the exhaust stack of one of defendants’ coal-burning steam engines and ignited a brush fire adjacent to the

railroad tracks. The government seeks to recover these costs under Colorado’s “Railroad Statute,” which provides, in its entirety: Every railroad company operating its line of road, or any part thereof, within this state shall be liable for all damages by fires that are set out or caused by operating any such line of road, or any part thereof, in this state, whether negligently or otherwise. Such damages may be recovered by the party damaged by a proper action in any court of competent jurisdiction; but said action shall be brought by the party injured within two years next ensuing after it accrues. The liability imposed in this section shall inure solely in favor of the owner or mortgagee of the property so damaged or destroyed by fire, and the same shall not pass by 2 assignment or subrogation to any insurance company that has written a policy thereon. §40-30-103, C.R.S. Although the statute makes railroad companies strictly liable for “all damages by fires that are set out or caused” by their operations, see British American Assurance Co. v. Colorado & Southern Railway Co., 125 P. 508, 510 (Colo. 1912); Union Pacific Railway Co. v. Arthur, 29 P. 1031, 1032 (Colo. App. 1892), defendants insist it does not allow recovery of fire suppression costs. I concur with the magistrate judge that, to the contrary, it does.2 I reject out of hand defendants’ suggestion that the magistrate judge erroneously relied on United States v. Boone, 476 F.2d 276 (10th Cir. 1973),3 in concluding that fire

suppression costs were recoverable, principally because the judge did not cite Boone for that proposition. Instead, he relied on Boone to conclude – responsive to arguments put forth in defendants’ motion to dismiss – that when the government is a landowner, it “is entitled to whatever protection is afforded to other landowners in Colorado.” (Recommendation at 15.) In other words, if the Railroad Statute otherwise provides for the recovery of fire suppression costs, the United States as a landowner protecting its own property is entitled to recover them to the same extent as a private

2 Defendants’ objection that the recommendation is premature because the court has not yet ruled on their motion to certify questions to the Colorado Supreme Court is moot. (See Order Denying Defendants' Motion for Issuance of Certified Questions to the Colorado Supreme Court Pursuant to C.A.R. 21.1 and Motion for Leave To Submit Amicus Brief [#83, filed June 1, 2020.) 3 To the extent defendants further suggest it was error for the magistrate judge to consider this authority because neither party cited it in their briefs, I reject any such argument. See Elder v. Holloway, 510 U.S. 510, 512, 114 S.Ct. 1019, 1021, 127 L.Ed.2d 344 (1994) (court’s review “is to be conducted in light of all relevant precedents, not simply those cited to, or discovered by, the district court”). 3 party.4 I also find and conclude that the magistrate judge correctly applied Colorado’s principles of statutory construction. See Citizens for Responsible Government State Political Action Committee v. Davidson, 236 F.3d 1174, 1190 (10th Cir. 2000) (“We

interpret state laws according to state rules of statutory construction.”). Although an unambiguous statute should be enforced as drafted, see Klinger v. Adams County School District No. 50, 130 P.3d 1027, 1031 (Colo. 2006); Slack v. Farmers Insurance Exchange, 5 P.3d 280, 284 (Colo. 2000), the magistrate judge correctly concluded that the Railroad Statute is ambiguous as to what damages are recoverable thereunder.5

4 Defendants complain of the magistrate judge’s purported failure to address their argument that because there is no federal common law right to recover fire suppression costs, a state statute must specifically so provide. (Obj. at 13; Motion To Dismiss at 7-9, 11-12.) The first part of this argument is irrelevant, since the government seeks to recover exclusively on Colorado state statutory law. The latter is based on a misconception that because other states have enacted statutes specifically providing for the recovery of fire suppression costs, such costs are not recoverable in the absence of such a statute. While I agree that such a statute would simplify matters greatly, the caselaw on which defendants rely does not support their argument. Instead, these cases apply the "municipal cost recovery rule" or "free public services doctrine," which provides that “ absent specific statutory authorization or damage to government-owned property, a county cannot recover the costs of carrying out public services from a tortfeasor whose conduct caused the need for the services.” Barbara J. Van Arsdale, J.D., Construction and Application of "Municipal Cost Recovery Rule," or "Free Public Services Doctrine,” 32 A.L.R. 6th 261 (2008).

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United States v. Durango & Silverton Narrow Gauge Railroad Company, The, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-durango-silverton-narrow-gauge-railroad-company-the-cod-2020.