Whispell Foreign Cars, Inc. v. United States

100 Fed. Cl. 529, 2011 U.S. Claims LEXIS 1815, 2011 WL 3805918
United States Court of Federal Claims·Decided August 29, 2011·No. No. 09-315L·Published·Cited by 20 cases

Opinion

ORDER AND OPINION

HEWITT, Chief Judge.

I. Introduction

This is a rails-to-trails case brought by Whispell Foreign Cars, Inc., et al. (plaintiffs). Plaintiffs claim that the government effected a taking of their property when it converted a railroad right of way to a trail pursuant to the National Trails System Act Amendments of 1983 (the Trails Act Amendments), Pub.L. No. 98-11, 97 Stat. 42, to the National Trails System Act (Trails Act), Pub.L. No. 90-543, 82 Stat. 919 (1968) (codified as amended at 16 U.S.C. § 1241 (2006)). Pis.’ Mem. of Law in Supp. of Mot. for Partial Summ. J. (plaintiffs’ Memorandum or Pis.’ Mem.), Docket Number (Dkt. No.) 31, at 1. Plaintiffs request the court to enter partial summary judgment holding that the government has taken their property in violation of the Fifth Amendment and is therefore obligated to pay plaintiffs just compensation. Pis.’ Mem. 2.

Defendant cross-moves for summary judgment contending that Tampa & Gulf Coast Railroad Co. (individually and/or collectively with its successors, as the context requires, Tampa & Gulf Coast) acquired a fee simple interest in plaintiffs’ property and that the government is therefore not obligated to pay plaintiffs just compensation. Def.’s Cross-Mot. for Summ. J., Opp’n to Pis.’ Mot. for [532]*532Partial Summ. J., and Mem. in Supp. Thereof (defendant’s Response or Def.’s Resp.), Dkt. No. 38, at 1-2.

Before the court are Plaintiffs’ Motion for Partial Summary Judgment, Dkt. No. 29, filed June 16, 2010; plaintiffs’ Memorandum, Dkt. No. 31, filed June 16, 2010; Plaintiffs’ Proposed Findings of Uncontroverted Fact (PFUF I), Dkt. No. 30, filed June 16, 2010; Defendant’s Responses and Objections to Plaintiffs’ Proposed Findings of Uncontro-verted Fact (Def.’s Resp. to PFUF I), Dkt. No. 40, filed July 28, 2010; defendant’s Response, Dkt. No. 38, filed July 28, 2010; Defendant’s Proposed Findings of Uncontro-verted Fact in Support of its Cross-Motion for Summary Judgment (DFUF), Dkt. No. 39, filed July 28, 2010; Plaintiffs’ Responses to Defendant’s Proposed Findings of Uneon-troverted Fact in Support of its Cross-Motion for Summary Judgment (Pis.’ Resp. to DFUF), Dkt. No. 49, filed October 22, 2010; Plaintiffs’ Proposed Findings of Uncontro-verted Fact in Response to Defendant’s Cross-Motion for Summary Judgment (PFUF II), Dkt. No. 50, filed October 22, 2010; Plaintiffs’ Response to Defendant’s Cross-Motion for Summary Judgment (Pis.’ Resp.), Dkt. No. 48, filed October 22, 2010; Defendant’s Reply in Support of Cross-Motion for Partial Summary Judgment, and Opposition to Plaintiffs’ Motion for Partial Summary Judgment (Def.’s Reply), Dkt. No. 56, filed November 23, 2010; Defendant’s Objections and Response to Plaintiffs’ Proposed Findings of Uncontroverted Fact in Response to Defendant’s Cross-Motion for Summary Judgment (Def.’s Resp. to PFUF II), Dkt. No. 57, filed November 23, 2010; Plaintiffs’ Sur-Reply in Support of their Motion for Partial Summary Judgment and in Response to the Government’s Reply in Support of its Cross-Motion for Partial Summary Judgment (Pis.’ Sur-Reply), Dkt. No. 62, filed December 15, 2010; Defendant’s Supplemental Reply in Support of Cross-Motion for Partial Summary Judgment and in Opposition to Plaintiffs’ Motion for Partial Summary Judgment (Def.’s Supp. Brief), Dkt. No. 64, filed January 28, 2011; Plaintiffs’ Supplemental Memorandum in Support of Their Cross-Motion for Partial Summary Judgment Relating to Segments of Right^of-Way Referenced in Ordinance 429 and for Which There is No Recorded Conveyance (Pis.’ Supp. Brief), Dkt. No. 68, filed February 14, 2011; Motion by Bama Sea Products, Inc., Peter Denne Property Holdings, Inc. and the Batton, Samon, and Resch Families Requesting this Court to Reconsider its Dismissal of Their Claims (plaintiffs’ Motion for Reconsideration or Pis.’ Mot. Recons.), Dkt. No. 69, filed February 28, 2011; Defendant’s Response to Plaintiffs’ Motion for Reconsideration (Def.’s Resp. Recons.), Dkt. No. 74, filed March 30, 2011; Plaintiffs’ Reply in Support of Motion for Reconsideration (Pis.’ Reply Recons.), Dkt. No. 79, filed April 18, 2011; the Parties’ Joint Stipulation in Response to this Court’s June 7, 2011 Order (Stipulation I), Dkt. No. 83, filed June 17, 2011; Defendant’s Supplemental Memorandum Addressing Ordinance 429 (Def.’s 429 Brief), Dkt. No. 86, filed July 7, 2011; Plaintiffs’ Supplemental Brief on Ordinance 429 (Pis.’ 429 Brief), Dkt. No. 87, filed July 7, 2011; the parties’ Second Joint Stipulation (Stipulation II), Dkt. No. 89, filed July 12, 2011; and Plaintiffs’ Reply Brief on Ordinance 429 (Pis.’ 429 Reply), Dkt. No. 91, filed July 15, 2011.

II. Background

A. The Trails Act

Congress enacted the Trails Act Amendments to address the national problem of declining use of rail tracks and resulting removal of tracks. Preseault v. Interstate Commerce Comm’n (Preseault I), 494 U.S. 1, 5, 110 S.Ct. 914, 108 L.Ed.2d 1 (1990). The Trails Act Amendments authorize the Interstate Commerce Commission (Commission or ICC)1 to preserve railroad rights of way not currently in use for rail service for possible future use by converting unused rights of [533]*533way to recreational trails. Id. at 6,110 S.Ct. 914; see 16 U.S.C. § 1241.

In order for a railroad right of way to be converted to a recreational trail, the railroad must first initiate abandonment proceedings with the Surface Transportation Board (STB) under 49 U.S.C. § 10903 (2006) or seek an exemption under 49 U.S.C. § 10502.2 Caldwell v. United States (Caldwell I), 57 Fed.Cl. 193, 195 (2003), affd, 391 F.3d 1226 (Fed.Cir.2004). If authority to abandon is granted, and the railroad carries out the abandonment, the STB’s jurisdiction over the railroad right of way usually terminates. Hayfield N. R.R. v. Chicago & N.W. Transp. Co., 467 U.S. 622, 633-34, 104 S.Ct. 2610, 81 L.Ed.2d 527 (1984). A party interested in acquiring or using the railroad right of way may request .a certificate of interim trail use (CITU) or a notice of interim trail use (NITU) from the STB.3 49 C.F.R. § 1152.29(a), (c)-(d) (2010).

If a request for an NITU is received, and the railroad indicates that it is willing to negotiate an “interim trail use/rail banking agreement” (Trails Act Agreement), the STB4 issues an NITU. 49 C.F.R. § 1152.29(d)(1);5 Caldwell I, 57 Fed.Cl.

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Whispell Foreign Cars, Inc. v. United States, 100 Fed. Cl. 529, 2011 U.S. Claims LEXIS 1815, 2011 WL 3805918 (uscfc 2011).

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