WSIC v. Horse Heaven Heights, Inc.

130 P.3d 880
CourtCourt of Appeals of Washington
DecidedMarch 23, 2006
Docket23752-4-III
StatusPublished

This text of 130 P.3d 880 (WSIC v. Horse Heaven Heights, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WSIC v. Horse Heaven Heights, Inc., 130 P.3d 880 (Wash. Ct. App. 2006).

Opinion

130 P.3d 880 (2006)
132 Wash.App. 188

WASHINGTON SECURITIES & INVESTMENT CORPORATION, a Washington Corporation, Respondent,
v.
HORSE HEAVEN HEIGHTS, INC., a Washington Corporation, and Martin O. Rankin and Valerie Rankin, husband and wife and their marital community, Appellants.

No. 23752-4-III.

Court of Appeals of Washington, Division 3.

March 23, 2006.

*882 P. Stephen DiJulio, Justin D. Haag, Foster, Pepper PLLC, Seattle, for Appellants.

John G. Schultz, George E. Telquist, Leavy, Schultz, David & Fearing PS, Kennewick, for Respondent.

THOMPSON, J.[*]

¶ 1 This case deals with a portion of a right-of-way granted in limited fee to Northern Pacific Railway Company that was subsequently transferred via quitclaim deed to a private company (Washington Securities and Investment Corporation). The United States also issued a land patent to Martin Rankin to the same property. In cross-appeals to quiet title, the trial court granted summary judgment in favor of Washington Securities and Investment Corporation (WSIC). Martin and Valerie Rankin allege that the trial court erred (1) by classifying the railroad company's interest as a limited fee with a right of reverter rather than an easement, (2) by finding that the railroad could alienate any property within the right-of-way, and (3) by quieting title in favor of WSIC and failing to quiet title in the Rankins' favor. We affirm the trial court.

FACTS

¶ 2 This case relates to real property located within the city of Kennewick that is a portion of a right-of-way granted to the Northern Pacific Railroad Company (hereinafter NPRC). The Northern Pacific Railroad Land Grant Act of 1864[1] (1864 Act) created the NPRC and empowered this company to construct a railroad from Lake Superior to the Pacific coast. Section 2 of this act allowed the NPRC to appropriate public lands for a right-of-way that would extend 200 feet from either side of the actual railway. The Kennewick property that underlies this dispute is part of the right-of-way attaching to NPRC's railway. Construction of the portion of the railway in question occurred in 1883.

¶ 3 The NPRC subsequently became known as the Burlington Northern and Sante Fe Railway Company (BNSF). In 2003, BNSF conveyed a portion of its right-of-way to WSIC by executing a quitclaim deed. However, BNSF specifically quitclaimed the property subject to the railroad's reservations and rights-of-way. BNSF has never ceased its use or maintenance of the railway through the disputed property.

¶ 4 In 1975, the United States issued a land patent to Martin Rankin that conveyed a plot of land that included BNSF's right-of-way. This patent conferred on the Rankins[2] a reversionary interest in the right-of-way. The Rankins eventually contacted BNSF and WSIC regarding the right-of-way on the property and the buildings that WSIC constructed on it. Through a series of letters, WSIC and the Rankins both adopted the *883 posture that they were the actual owners of the portion of the right-of-way that BNSF deeded to WSIC.

¶ 5 WSIC filed a complaint and asked the trial court to enter summary judgment in its favor quieting title to the disputed property on March 31, 2004. The Rankins filed a cross motion for summary judgment.

¶ 6 In a memorandum decision, the trial court found that the 1864 Act granted the NPRC the right-of-way as a limited fee interest. It also found that the railroad was still using the disputed property and had not abandoned it, despite a portion of that property being subject to the quitclaim deed held by WSIC. Based on these findings, the trial court held that WSIC's claim to the property prevailed over the Rankins' land patent, and therefore granted summary judgment quieting title in favor of WSIC. This memorandum decision was incorporated by reference into the court's judgment and order.

¶ 7 The Rankins filed a motion for reconsideration, which the trial court denied. This appeal timely followed.

ANALYSIS

Application of the 1864 Act

¶ 8 As a threshold matter, we must determine when the railroad's interest in the disputed property arose, as this will determine the nature of the property interests at stake in this matter. The Rankins assign error to the court's finding that NPRC (later known as BNSF) acquired the right-of-way through the 1864 Act rather than from the Railroad Right-of-Way Acts of 1875[3] (1875 Act). A determination of the nature of the Rankins' and the railroad's property interests depends on whether NPRC's interest is deemed to have arisen from the 1864 Act or the 1875 Act.

¶ 9 A right-of-way for a railroad may be in limited fee or as an easement. Ray v. King County, 120 Wash.App. 564, 571, 86 P.3d 183, review denied, 152 Wash.2d 1027, 101 P.3d 421 (2004). Whether a conveyance is one of limited fee or easement is a conclusion of law. Id. The general rule is that a right-of-way for a railroad is classified as a limited fee with a right of reverter if received from Congress before 1871, but is classified as an exclusive use easement if the right-of-way is received after 1871.[4]See, e.g., Idaho v. Or. Short Line R.R., 617 F.Supp. 207, 209 (D.Idaho 1985); Vieux v. E. Bay Reg'l Park Dist., 906 F.2d 1330, 1332-33 (9th Cir.1990).

¶ 10 Railways are considered to be in the nature of public highways. Lawson v. State, 107 Wash.2d 444, 449, 730 P.2d 1308 (1986). When an easement is taken as a public highway, title to the land remains with the owner of the encumbered property and the public only takes the right of passage or use. See City of Seattle v. P.B. Inv. Co., 11 Wash.App. 653, 657, 524 P.2d 419 (1974). Therefore, if the right-of-way was granted to the railroad as an easement, then the Rankins would hold title to the land underlying the right-of-way and the railroad would merely maintain a right of use so long as it continued to operate its railway.

¶ 11 Section 2 of the 1864 Act provided that the right-of-way through public lands "be, and the same is hereby, granted" to NPRC. Similar language has been held to designate an immediate transfer of interest, so that, when the route is definitely fixed, the title attaches from the date of the act to the sections of land in question. St. Joseph & Denver City R.R. v. Baldwin, 103 U.S. 426, 429, 26 L.Ed. 578 (1880). This means that, upon a definite route being identified by NPRC, the title to those lands attached and is deemed to relate back to July 2, 1864. St. Paul & Pac. R.R. v. N. Pac. R.R., 139 U.S. 1, 5, 11 S.Ct. 389, 35 L.Ed. 77 (1891). See also H.A. & L.D. Holland Co. v. N. Pac. Ry., 214 F. 920, 922 (9th Cir.1914) (finding that title was acquired under the 1864 Act, even *884 though the tracks were not definitely located until 1880 or platted until 1881).

¶ 12 As such, we find that the disputed property in this case was received as of 1864, even though the location of the definite route and actual construction of the railway did not occur until later.

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Bluebook (online)
130 P.3d 880, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wsic-v-horse-heaven-heights-inc-washctapp-2006.