Ybanez v. United States

98 Fed. Cl. 659, 2011 U.S. Claims LEXIS 888, 2011 WL 1957687
CourtUnited States Court of Federal Claims
DecidedMay 20, 2011
DocketNo. 09-172L
StatusPublished
Cited by8 cases

This text of 98 Fed. Cl. 659 (Ybanez 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
Ybanez v. United States, 98 Fed. Cl. 659, 2011 U.S. Claims LEXIS 888, 2011 WL 1957687 (uscfc 2011).

Opinion

OPINION AND ORDER

HODGES, Judge.

Plaintiffs own property abutting a railway corridor in northern Texas. They allege that defendant took plaintiffs’ property interests in the former Railroad right-of-way without just compensation. Action by the Surface Transportation Board prevented their lands from being subject to abandonment under Texas state law, according to plaintiffs. If the land subject to easements for railroad purposes had. been abandoned, plaintiffs urge, it would have returned to them as owners in fee of the estate. When the Board issued a Notice of Interim Trail Use, or NITU, that regulatory action halted all possibility of abandonment proceedings under Texas law. Instead, the land under the easements became available for use as a recreational trail by the general public.

A taking may occur in Rails-to-Trails cases if a public trail is deemed to be beyond the scope or purpose of the easements granted to the railroad by landowners’ predecessors in interest. The scope of these easements is often described as being for “railroad purposes.” Courts have found trail use to be beyond the scope of the easements granted for railroad purposes in many of the Rails-to-Trails cases.

Plaintiffs filed a motion for summary judgment as to liability. Defendant filed a cross-motion, contending that trail use is within the scope of the original railroad use easements because the stated purposes include maintenance of the railway corridor.1 Unless the Government can show that the language of these easements is sufficiently broad to contemplate a public trail, or that the Railroad owns the land under its corridor in fee, a taking occurs. See Ladd v. United States, 630 F.3d 1015, 1023 (Fed.Cir.2010). The Court of Appeals for the Federal Circuit has held that trail use is beyond the intended scope of railroad-purpose easements when applying state laws; and it has established a bright line rule that the taking occurs when the Board issues a NITU. Id. Defendant has not shown that we should make different findings regarding the permissible scope of railroad easements in applying the law of Texas.

A secondary issue has been the status of two plaintiffs whose lands are separated from the Railroad corridor by a road that is owned in fee simple by the County. This cuts off any rights those plaintiffs would have to re-versionary interests arising from the alleged taking.

BACKGROUND

The Federal Government has regulated interstate railroad operations since enactment of the Interstate Commerce Act of 1887. The first regulatory framework for addressing abandonment of railroad corridors was enacted in 1920. See Transportation Act of 1920, Pub.L. No. 66-152, 41 Stat. 456 (1920). The Surface Transportation Board replaced the Interstate Commerce Commission in 1995 as the government agency with exclusive regulatory authority over the construction, operation, and abandonment of rail lines. A railroad must seek permission from the Surface Transportation Board to cease operation or abandon service on a rail line. See 49 U.S.C. § 10903.

Congress enacted the Railroad Revitalization and Regulatory Reform Act of 1976 in part to strengthen the Government’s regulatory authority in this area by allowing the sale of rail lines for public purposes and recreational uses. This law introduced the process known as “railbanking.” Pub.L. No. 94-210, 90 Stat. 31 (1976). The National Trails System Act Amendments of 1983 was another attempt to promote outdoor recreation opportunities and railbanking. 16 U.S.C. § 1247 (2006).

[663]*663The National Trails System Act provides an alternative to abandonment of a railroad right-of-way by allowing a railroad to negotiate with a state or local agency or private group to create a recreational trail along the right-of-way. 16 U.S.C. § 1247(d); Caldwell v. United States, 391 F.3d 1226, 1229 (Fed.Cir.2004). If a railroad and a prospective trail operator wish to consider using the railway corridor as a public trail, the Surface Transportation Board will issue a Notice of Interim Trail Use, or NITU, to block abandonment of the right-of-way under state law. The Board retains jurisdiction of the corridor for possible future railroad use. Caldwell, 391 F.3d at 1229.

The Trails Act forestalls legal abandonment of the corridor by the railroad so that the parties can negotiate its conversion to recreational purposes pursuant to federal law. This is the point at which the Court of Appeals for the Federal Circuit has found that a taking occurs if other facts apply. See Caldwell, 391 F.3d at 1229. Thus, the takings claim accrues when the NITU is issued. Ladd, 630 F.3d at 1023; Caldwell, 391 F.3d at 1235.

FACTS

Plaintiffs are property owners along a 4.57-mile Railroad corridor in Ellis County, Texas. The corridor was used until 2003 by Union Pacific Railroad Company as successor to the Dallas & Waco Railway Company. The Railroad acquired rights to various sections of the corridor by deed, by prescription, and by condemnation, between 1887 and 1893.

The Railroad notified the Surface Transportation Board in November 2005, that it wished to abandon this stretch of line.2 Two months later, the City of Waxahaehie, Texas filed a request for issuance of a NITU, which the Board issued in February 2006. Thereafter, the city negotiated with the Railroad for acquisition of the corridor for use as a recreational trail. The Railroad and the City entered into a Donation and Purchase and Sale Agreement in October 2007, pursuant to the National Trails System Act, 16 U.S.C. § 1247(d).

All but two of the plaintiffs are fee simple owners to the center line of the Railroad corridor. These are the Boyce Feed and Grain Corporation, Hugh Hyatt, the Ray Ho-bratschk Investment Group # 10, Ray Ho-bratschk as Trustee, and Shirley Peel.3 The Government disputes the property interests of remaining plaintiffs Ernest Ybanez and Elaine Girard Faires.

ARGUMENTS

Plaintiffs contend that trail use exceeds the scope of the easements granted to the Railroad under Texas law and that a taking occurred when the Surface Transportation Board issued the NITU. See Caldwell, 391 F.3d at 1229 (“A Fifth Amendment taking occurs if the original easement granted to the railroad under state property law is not broad enough to encompass a recreational trail.”). The easements were for “railroad purposes,” and while the Government may maintain control over railroad corridors through railbanking and trail making, those functions do not qualify as railroad purposes.

According to defendant, railbanking and interim trail use are within the scope of the railroad-purpose easements granted originally, because they are part of a railroad’s “maintenance” and preservation of its right-of-way.4 It insists that plaintiffs’ reliance on [664]*664Federal Circuit precedent is misguided because none of those cases turned on Texas law.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Loveridge v. United States
Federal Claims, 2020
Anderson v. United States
Federal Claims, 2020
Lindemann Properties, Ltd. v. Campbell
524 S.W.3d 873 (Court of Appeals of Texas, 2017)
James v. United States
130 Fed. Cl. 707 (Federal Claims, 2017)
Thomas v. United States
106 Fed. Cl. 467 (Federal Claims, 2012)
Jenkins v. United States
102 Fed. Cl. 598 (Federal Claims, 2011)
Ybanez v. United States
102 Fed. Cl. 82 (Federal Claims, 2011)
Biery v. United States
99 Fed. Cl. 565 (Federal Claims, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
98 Fed. Cl. 659, 2011 U.S. Claims LEXIS 888, 2011 WL 1957687, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ybanez-v-united-states-uscfc-2011.