Furlong v. United States
131 Fed. Cl. 548
Fed. Cl.2017Background
- 271 landowners (opt-in class) allege the United States effected a taking by authorizing conversion of a 9.14-mile rail corridor to recreational trail use under 16 U.S.C. § 1247(d) (Rails‑to‑Trails).
- Plaintiffs seek just compensation for extinguished railroad easements; parties conducted discovery and exchanged expert appraisals of representative properties.
- After ADR, parties reached a provisional settlement: United States to pay $13,988,929.28 plus interest, including just compensation, pre-judgment interest, URA attorneys’ fees and costs.
- Plaintiffs moved for preliminary approval of the class settlement, approval of notice to class members, and scheduling of a fairness hearing under RCFC 23(e).
- The government did not oppose preliminary approval but challenged aspects of the proposed notice (urging a class website and omitting language referencing private fee agreements). Class counsel revised the notice; the court adopted the revised notice and forms.
- The court preliminarily approved the settlement, ordered mail notice to class members, set deadlines for objections/requests to speak, and scheduled a telephonic fairness hearing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether settlement merits preliminary approval under RCFC 23(e) | Settlement is fair, product of arms‑length negotiations, supported by discovery and expert valuations | Did not oppose preliminary approval | Court preliminarily approved; no obvious deficiencies, no collusion or preferential treatment |
| Adequacy of proposed class notice (including whether website required) | Mailed notice with option to request additional documents is sufficient; revised notice provides necessary information | Mailed notice insufficient; court should require a class website providing additional information | Court adopted plaintiffs’ revised mailed notice; found mail notice reasonably calculated to inform class and no website required |
| Content of notice regarding private fee agreements | Proposed notice adequate; additional fee‑agreement language unnecessary | Objected to language referencing enforcement of private fee agreements | Court adopted revised notice; did not adopt government’s request to excise or otherwise alter beyond revisions provided by plaintiffs |
| Format/location of fairness hearing (telephonic vs. in‑person) | Requested in‑person participation for counsel and class members; will provide forms to request to speak | Defense may appear remotely; government did not oppose telephonic hearing | Court scheduled a telephonic fairness hearing with in‑person participation options in Albany; judge may travel if sufficient class members request in‑person attendance |
Key Cases Cited
- Haggart v. Woodley, 809 F.3d 1336 (Fed. Cir. 2016) (notice must reasonably apprise class members and provide access to additional information)
- Lambert v. United States, 124 Fed. Cl. 675 (2015) (procedural framework for preliminary fairness evaluation and notice under RCFC 23(e))
- Barnes v. United States, 89 Fed. Cl. 668 (2009) (factors considered at preliminary approval: negotiation quality, preferential treatment, counsel experience, obvious deficiencies)
- Thomas v. United States, 121 Fed. Cl. 524 (2015) (court’s preliminary role is to screen for obvious deficiencies, not resolve merits)
