Justia Transportation Law Opinion Summaries
Articles Posted in Real Estate & Property Law
Union Pacific Railroad v. Santa Fe Pacific Pipelines
This appeal arose out of a declaratory relief action where the Railroad sought a determination of the rent due from the Pipeline for the continued use of its easements from 2004 to 2014. The Railroad obtained a declaration that the rent due was in excess of $14 million per year. The trial court entered judgment reflecting the total back rent due, plus interest, up to the date of entry of judgment. The Pipeline appealed. The court addressed the law relating to railroad rights-of-way in an effort to resolve the legal issues that apply to property interests in the land and, by extension, the Railroad's right to grant and lease subsurface easements to the Pipeline. The court reversed and remanded the trial court's finding as to the "total fee value" for purposes of its ATF calculation; directed the trial court to determine the total fee value of those parcels of land in which the Railroad had sufficient interest to entitle it to collect rent on the Pipeline's easements between January 1, 2004, and December 31, 2013; concluded that the trial court committed no error with respect to its determinations regarding issue preclusion, use of the ATF method, - calculations of the rental rate, the enhancement factor, and the use factor -, and the dates of abandonment of certain easements by the Pipeline; and reversed and remanded that part of the judgment awarding prejudgment interest under Civil Code 3287(a) in order for the trial court to determine whether the Pipeline was liable for the payment of rent on the reserved easements, the abandoned easements, or Line Section 101, which rent it unilaterally withheld. View "Union Pacific Railroad v. Santa Fe Pacific Pipelines" on Justia Law
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Real Estate & Property Law, Transportation Law
Biery v. United States
About 100 years ago, the then-owners of land abutting a 2.88-mile stretch of rail corridor near the City of South Hutchinson, Kansas granted deeds covering that land to the predecessor of the Burlington Northern and Santa Fe Railway (BNSF). The corridor was used by BNSF until 2004. It was then converted to a recreational trail pursuant to the National Trail Systems Act, 16 U.S.C. 1247(d). The current owners asserted that the conversion constituted a taking and sought compensation under the Fifth Amendment. The Court of Federal Claims entered summary judgment in favor of the government, finding that none of the plaintiffs possessed a fee-simple property interest in the land underlying the rail corridor that could be the subject of a taking because the land had been conveyed to the BNSF’s predecessor in fee simple and not by easements. The Federal Circuit affirmed in part, finding that some of the land was conveyed to the BNSF’s predecessor in fee simple, but that the railroad was only granted an easement over other land. With respect to others, the issue was clouded by chain-of-title questions. View "Biery v. United States" on Justia Law
MD Mall Assocs. v. CSX Transp., Inc
The mall is bounded by a railroad track and drainage ditches owned by CSX. Houses beyond the track are higher than the track, which is higher than the mall. CSX’s predecessor installed a berm, straddling the property line, to prevent storm water from flowing onto the mall property. In 2010 storm water breached the berm. Runoff and debris from CSX’s property flowed down the slope and overwhelmed a private storm water inlet in the mall parking lot. CSX assured mall representatives that it planned a ditch to resolve the problem, but, instead, began constructing a spillway on the mall side of the berm to direct storm water into the mall’s drainage inlet. The mall manager discovered and immediately halted the work. The mall claimed negligence and continuing trespass. During discovery, the mall learned that CSX had refurbished the relevant portion of the track and argued that the modifications led to the discharge onto its property and that the discharge was evidence that CSX had violated, 49 C.F.R. 213.33, enacted under the Federal Railroad Safety Act. The district court granted CSX summary judgment, holding that the claims were blocked by the FRSA preemption provision. The Third Circuit vacated, noting the “constrained scope” of FRSA preemption. View "MD Mall Assocs. v. CSX Transp., Inc" on Justia Law
Ladd v. United States
In 1903 the railroad acquired a right-of-way for a 100-foot wide, 76-mile long, strip across Arizona land near the Mexican border. After operating for about 100 years, the railroad initiated proceedings to abandon the railway with the Department of Transportation’s Surface Transportation Board, which issued a Notice of Interim Trail or Abandonment (NITU) in 2006 authorizing conversion to a public trail under the National Trails System Act Amendments of 1983, 16 U.S.C. 1247(d). The landowners sued, alleging that issuance of the NITU constituted a compensable taking. The claims court dismissed, reasoning that the government had not physically invaded the property. The Federal Circuit reversed and held that the takings claim accrued when the 2006 NITU issued. During discovery on remand, the government produced a NITU affecting the property that had issued in 1998. There was no indication that the NITU was published; the landowners submitted declarations that they were not aware of the 1998 NITU. The claims court held that the limitations period began in 1998 and that the claims were time-barred. The Federal Circuit reversed. In these circumstances, the government’s interest in bright-line legal rules must yield to the landowners’ right to receive actual or constructive notice that their claims have accrued. View "Ladd v. United States" on Justia Law
Brandt v. United States
In 1908, the United States granted the railroad right-of-way to Pacific Railroad Company for railroad purposes. In 1976, the government conveyed 83.32 acres of land partially burdened by the right-of-way to Brandt’s parents, in fee simple, subject to the right-of-way. In 1987, WYCO acquired the railroad right-of-way and operated the rail line. In 1996, WYCO filed a Notice of Intent to Abandon Rail Service with the Surface Transportation Board. The STB approved abandonment in 2003, and, in 2004, WYCO notified the STB that it had completed abandonment. In 2006, the government sought declaratory judgment that title to the abandoned right-of-way had vested in the government under the National Trails System Improvements Act of 1988, 16 U.S.C. 1248(c). Brandt sought quiet title and argued that, to the extent the government acquired some interest in land formerly occupied by the easement, that interest would constitute a taking for which just compensation is owed. The Claims Court dismissed the takings claim for lack of jurisdiction under 28 U.S.C. 1500. The Federal Circuit reversed, holding that Brandt did not have claims “pending” for purposes of section 1500 when he filed his takings complaint. View "Brandt v. United States" on Justia Law
Marvin M. Brandt Revocable Trust v. United States
The General Railroad Right-of-Way Act of 1875 provides railroad companies “right[s] of way through the public lands of the United States,” 43 U.S.C. 934. One such right of way, created in 1908, crosses land that the government conveyed to the Brandt family in a 1976 land patent. That patent stated that the land was granted subject to the right of way, but it did not specify what would occur if the railroad relinquished those rights. A successor railroad abandoned the right of way with federal approval. The government sought a declaration of abandonment and an order quieting its title to the abandoned right of way, including the stretch across the Brandt patent. Brandt argued that the right of way was a mere easement that was extinguished upon abandonment. The district court quieted title in the government. The Tenth Circuit affirmed. The Supreme Court reversed. The right of way was an easement that was terminated by abandonment, leaving Brandt’s land unburdened. The Court noted that that the government had argued the opposite position in an earlier case. In that case, the Court found the 1875 Act’s text “wholly inconsistent” with the grant of a fee interest. An easement disappears when abandoned by its beneficiary. View "Marvin M. Brandt Revocable Trust v. United States" on Justia Law
Marvin M. Brandt Revocable Trust v. United States
The General Railroad Right-of-Way Act of 1875 provides railroad companies “right[s] of way through the public lands of the United States,” 43 U.S.C. 934. One such right of way, created in 1908, crosses land that the government conveyed to the Brandt family in a 1976 land patent. That patent stated that the land was granted subject to the right of way, but it did not specify what would occur if the railroad relinquished those rights. A successor railroad abandoned the right of way with federal approval. The government sought a declaration of abandonment and an order quieting its title to the abandoned right of way, including the stretch across the Brandt patent. Brandt argued that the right of way was a mere easement that was extinguished upon abandonment. The district court quieted title in the government. The Tenth Circuit affirmed. The Supreme Court reversed. The right of way was an easement that was terminated by abandonment, leaving Brandt’s land unburdened. The Court noted that that the government had argued the opposite position in an earlier case. In that case, the Court found the 1875 Act’s text “wholly inconsistent” with the grant of a fee interest. An easement disappears when abandoned by its beneficiary. View "Marvin M. Brandt Revocable Trust v. United States" on Justia Law
Bywaters v. United States
Plaintiffs owned land in the Chaparral railroad corridor, converted for trail use by the ICC under the National Trails System Act, 16 U.S.C. 1247(d) and filed a class action compensation claim against the government. After the government stipulated to takings liability on certain claims, the parties cooperated to determine compensation. The district court approved a settlement of $1,241,385.36, including pre-judgment interest. Plaintiffs sought attorneys' fees of $832,674 under the Uniform Relocation Assistance and Real Property Acquisition Policies Act, 42 U.S.C. 4654(c) for 2,119.69 hours of work at market rates for the District of Columbia, where counsel practiced, rather than rates for the Texas forum where the case was filed. The district court determined that 18.2 hours were unreasonable, that the relevant market was the District of Columbia and calculated a lodestar figure of $826,044.19, but considering the results obtained, reduced by 50% and awarded $413,022.10. The Federal Circuit vacated. While a court may reduce the lodestar figure to account for the amount involved and results obtained, those factors should be considered in calculating the lodestar figure, rather after that calculation. The district court should have used forum rates in determining the reasonable hourly rate. View "Bywaters v. United States" on Justia Law
Texas Central Business Lines v. City of Midlothian
Plaintiff, a terminal and switching railroad operating in the City, brought a declaratory judgment against the City alleging that a federal statute preempted all City ordinances that affected its transloading operations. The railroad wanted to expand its operations and the City opposed the expansion, claiming it violated several municipal ordinances. The court reversed the district court's holding of no preemption as to the standard construction details and road grading ordinance, resting its decision on express preemption under the Interstate Commerce Commission Termination Act (ICCTA), 49 U.S.C. 10101 et seq. The court's express preemption holding only pertained to the road and paving areas used in connection with the TCB-MAALT-Halliburton transloading operation. This preemption rendered the City's appeal from the denial of its request for civil penalties for ordinance violations moot. The court reversed what the court concluded was likely a holding by the district court that there was express preemption as to the older, 20-acre transloading center and remanded for further proceedings. The court affirmed the district court's remaining rulings. View "Texas Central Business Lines v. City of Midlothian" on Justia Law
American Trucking Ass’n v. The City of Los Angeles, et al.
This case arose when the Port of Los Angeles prohibited motor carriers from operating drayage trucks on port property unless the motor carriers entered into concession agreements with the port. The concession agreements set forth fourteen specific requirements covering, among other things, truck driver employment, truck maintenance, parking, and port security. The agreements were adopted as part of the port's "Clean Truck Program," adopted in response to community opposition that had successfully stymied port growth. Plaintiff challenged the concession agreements, arguing that they were preempted by the Federal Aviation Administration Authorization Act (FAAA Act), 49 U.S.C. 14501 et seq. The court held that the district court meticulously identified and applied the governing law. The court affirmed the district court's holding that the financial capability, maintenance, off-street parking, and placard provisions were not preempted. The court reversed the district court's conclusion that the employee-driver provision was saved from preemption by the market participant doctrine, and remanded for further proceedings. View "American Trucking Ass'n v. The City of Los Angeles, et al." on Justia Law