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99 Fed. Cl. 133
Fed. Cl.
2011
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Background

  • Plaintiffs are landowners with fee simple interests abutting the Southbridge Secondary Track, previously subject to railroad easements.
  • The Southbridge Secondary Track lies in Massachusetts and Connecticut and has been acquired by Massachusetts for use as a recreational trail under the Trails Act process.
  • The STB issued a Certificate of Interim Trail Use or Abandonment (NITU) in 2003; abandonment and interim trail use were to be negotiated, with potential railbanking.
  • Massachusetts acquired the right-of-way by eminent domain in 2004, with P&W releasing claims and the NITU preserving potential railroad reinstatement.
  • Plaintiffs contend the NITU prevented extinction of their easements and amounted to a Fifth Amendment taking requiring compensation.
  • Motions for summary judgment addressed title issues, liability on the takings claim, and the government’s liability for the trail use.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether plaintiffs hold a reversionary fee simple following abandonment absent federal action Swadia & Murphy hold fee simple; Massachusetts cannot extinguish without compensation Massachusetts reserved rights allow acquisition for public use without compensation No, Massachusetts cannot extinguish reversionary interests without compensation absent federal action.
Whether the original easements encompass a recreational trail Easements broad enough to cover railways and related uses; expansion to trails is in-kind Easements are broad and can cover various public transportation uses Easements here are not broad enough to include a recreational trail; taking occurs.
Whether railbanking is a permissible railroad purpose within the easement scope Railbanking could be a permissible use to preserve rail service Railbanking is hypothetical and not a genuine railroad purpose Railbanking is not a permissible railroad use for these easements.
Whether the NITU constitutes a taking given abandonment intent NITU prevented extinguishment and imposed a new use, constituting a taking NITU is not a taking if within scope or justified by public purpose NITU caused a taking; government liable for compensation.

Key Cases Cited

  • Preseault v. United States, 100 F.3d 1525 (Fed. Cir. 1996) (determines takings when easement scope conflicts with trails; scope crucial)
  • Toews v. United States, 376 F.3d 1371 (Fed. Cir. 2004) (analyzes scope of railroad easement under state law; recreational trail not within scope)
  • NARPO v. Surface Transp. Bd., 158 F.3d 135 (D.C. Cir. 1998) (agency authority over abandonment and state control interplay)
  • Agostini v. North Adams Gaslight Co., 265 Mass. 70, 163 N.E. 745 (Mass. 1928) (early scope of railroad easements; rights limited to purpose)
  • Hazen v. Boston & Maine R.R., 68 Mass. 574 (Mass. 1854) (easement scope and use within implied purposes)
  • Nye v. Taunton Branch R.R. Co., 113 Mass. 277 (Mass. 1873) (abandonment extinguishes easement; reversion to soil owner)
  • Proprietors of Locks & Canals on Merrimack River v. Nashua & Lowell R.R. Co., 104 Mass. 1 (Mass. 1870) (abandonment restores original owner’s rights)
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Case Details

Case Name: Capreal, Inc. v. United States
Court Name: United States Court of Federal Claims
Date Published: May 6, 2011
Citations: 99 Fed. Cl. 133; 2011 U.S. Claims LEXIS 771; 2011 WL 1740543; No. 09-186L
Docket Number: No. 09-186L
Court Abbreviation: Fed. Cl.
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    Capreal, Inc. v. United States, 99 Fed. Cl. 133