Caquelin v. United States, 959 F.3d 1360

Background

Norma Caquelin owns fee simple title to land subject to a railroad easement (rail use only) originally granted in 1870; she asserted reversionary rights under Iowa law upon abandonment.
In May 2013 the railroad applied to the Surface Transportation Board (STB) for abandonment (it certified no traffic for two years); STB set an effective abandonment date of July 5, 2013.
On July 3, 2013 the STB issued a Notice of Interim Trail Use (NITU), staying the abandonment and withholding termination of the easement for 180 days to permit negotiations with prospective trail sponsors; the NITU expired Dec. 30, 2013 without an agreement.
The railroad completed abandonment by March 31, 2014. Caquelin sued the United States in the Court of Federal Claims, alleging a Fifth Amendment taking for the 180-day period the NITU blocked reversion.
The Court of Federal Claims awarded liability (initial summary judgment, then after remand following this court’s instruction, a trial/finding of taking); district court judgment for $900 was entered. The Federal Circuit affirms.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether a NITU that temporarily prevents abandonment is a categorical taking even if no trail agreement results	NITU coerces occupation/maintenance of an easement and thus effects a (temporary) categorical taking when it blocks state-law reversion	A NITU that expires without a trail agreement should be evaluated under Penn Central or Arkansas Game (multi-factor) rather than treated categorically	Ladd I line controls: a NITU that compels continuation of an easement is a categorical (temporary) taking when it blocks reversionary interests.
Whether Arkansas Game vitiates the categorical approach and requires a non-categorical analysis	N/A (Caquelin relied on categorical precedent)	Arkansas Game requires applying its temporary-taking factors (or Penn Central) instead of categorical rules	Arkansas Game does not displace Ladd I/Caldwell/Barclay for NITU-forced easements; categorical treatment remains appropriate.
Whether causation (but-for abandonment) matters to whether a NITU effects a taking	Caquelin: taking occurred here because abandonment would have occurred absent the NITU	U.S.: a taking cannot be found if, in the but-for world without the NITU, the railroad would not have abandoned during the NITU period	Court adopts causation principle: no taking unless, but for the NITU, the railroad would have abandoned during the NITU period. Here, evidence supports that abandonment would have occurred during the NITU period.
Whether remand or overruling of precedent is required	Caquelin: no overruling; factual record supports taking	U.S.: asked to overrule Ladd I (and related cases) or at least apply multi-factor test; sought remand for further factual development	Court declines to overrule Ladd I; affirms and declines remand (govt did not request remand for but-for findings); leaves some procedural burden questions for future cases.

Key Cases Cited

Ladd v. United States, 630 F.3d 1015 (Fed. Cir. 2010) (held STB NITU that blocks reversionary interests effects a categorical temporary taking)
Caldwell v. United States, 391 F.3d 1226 (Fed. Cir. 2004) (held taking occurs when NITU forestalls state-law reversionary interests)
Barclay v. United States, 443 F.3d 1368 (Fed. Cir. 2006) (applied Caldwell rule on accrual/taking from NITU issuance)
Arkansas Game & Fish Comm’n v. United States, 568 U.S. 23 (U.S. 2012) (government-induced temporary flooding can be a taking; flexible factors for temporary invasions)
Tahoe-Sierra Pres. Council, Inc. v. Tahoe Reg’l Planning Agency, 535 U.S. 302 (U.S. 2002) (temporary moratoria on development are regulatory takings evaluated under Penn Central)
Penn Central Transp. Co. v. City of New York, 438 U.S. 104 (U.S. 1978) (multi-factor test for regulatory takings)
Preseault v. Interstate Commerce Comm’n, 494 U.S. 1 (U.S. 1990) (Trails Act claims can give rise to Fifth Amendment takings actions)
Hendler v. United States, 952 F.2d 1364 (Fed. Cir. 1991) (temporary physical occupations are compensable takings)