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Faulk v. Union Pacific Railroad
172 So. 3d 1034
La.
2015
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Background

  • Union Pacific possessed a right of use servitude over land in Ouachita Parish via historic Deeds to Right of Way; landowners retained ownership beneath the tracks.
  • Crossings existed historically, with several private crossings maintained for landowners’ farming operations and access.
  • Louisiana enacted LSA-R.S. 48:394 in 2008 to require advance notice, hearings, and regulatory review by the LPSC before closing private crossings.
  • The statute directs the LPSC to determine whether a crossing unreasonably burdens or substantially interferes with rail transportation and to order closure accordingly.
  • Union Pacific challenged the statute as applied, arguing it effectuates an unconstitutional taking or otherwise impairs its rights; the district court partly granted relief to plaintiffs, and the Fifth Circuit certified questions to the Louisiana Supreme Court on constitutional takings grounds.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether LSA-R.S. 48:394, as applied, effects an unconstitutional taking under Art. I, § 4 of the Louisiana Constitution. Union Pacific contends the statute burdened its use rights and amounts to a taking. Louisiana asserts the statute is a valid police-power, procedural measure that regulates access without transferring ownership. No unconstitutional taking as applied.
Whether Union Pacific has standing to challenge the statute given its rights are servitudes, not ownership. Union Pacific claims a real-right status supports standing. Oil/railroad servitudes confer sufficient standing; ownership remains with landowners. Standing established by servitude rights.
Whether LSA-R.S. 48:394 is retroactive as to existing disputes and whether retroactivity is constitutional. Retroactive application injures vested property and contracts. Statute is procedural/retroactive by remedial design and does not disturb vested rights. Statute deemed procedural and retroactive applicable.
Whether the statute is a permissible regulatory framework balancing federal preemption and state police power, and whether any taking occurs under ripeness principles (Williamson/Palazzolo considerations). Regulatory process diverts property use without just compensation. Regulation provides notice/hearing and preempts only when required by federal law; not a taking absent final agency determination. Regulation permissible; no regulatory taking ripe until LPSC acts.

Key Cases Cited

  • Faulk v. Union Pacific Railroad Co., 576 Fed.Appx. 345 (5th Cir.2014) (certified question on takings under Louisiana law)
  • Avenal v. State, 886 So.2d 1085 (La.2004) (three-prong framework for eminent domain analysis)
  • Chambers Investment Co. v. Dept. of Transportation & Development, 595 So.2d 598 (La.1992) (three-prong takings inquiry; public purpose)
  • Lingle v. Chevron U.S.A. Inc., 544 U.S. 528 (2005) (regulatory takings principles; compensation when action is tantamount to appropriation)
  • Williamson County Reg’l Planning Comm’n v. Hamilton Bank of Johnson City, 473 U.S. 172 (1985) (ripeness; final agency action required for taking claim)
  • Palazzolo v. Rhode Island, 533 U.S. 606 (2001) (ripeness and advancement of regulatory takings claim)
  • Loretto v. Teleprompter Manhattan CATV Corp., 458 U.S. 419 (1982) (per se permanent physical taking)
  • Stop the Beach Renourishment, Inc. v. Florida Dept. of Environmental Protection, 560 U.S. 702 (2010) (takings jurisprudence guidance)
Read the full case

Case Details

Case Name: Faulk v. Union Pacific Railroad
Court Name: Supreme Court of Louisiana
Date Published: Jun 30, 2015
Citation: 172 So. 3d 1034
Docket Number: No. 2014-CQ-1598
Court Abbreviation: La.