NATIONAL RAILROAD PASSENGER CORPORATION v. 3.44 ACRES MORE OR LESS OF LAND AND BUILDING, 1:15-cv-01088

Background

Amtrak sought to condemn two adjacent lots (Lots 812 and 814) next to Washington Union Station; Lot 812 contains the Railway Express Agency (REA) Building and an underground garage.
Amtrak previously leased ~35,000 sq ft (≈30%) of the REA Building and held easements (including use of the H Street Underpass) tied to station operations.
Amtrak developed a Union Station Master Plan to expand tracks, platforms, and concourses and concluded ownership of the parcels was important to those plans.
In May 2015 Amtrak’s Board authorized purchase or condemnation; Amtrak offered $35M which Fluorine rejected; Amtrak filed a declaration of taking and deposited $35M.
Fluorine challenged Amtrak’s statutory authority to condemn Lot 812, arguing § 24311 requires strictly indispensable, last-resort necessity; Amtrak argued a broader necessity standard and that courts owe limited review.
The District Court granted Amtrak’s motion for partial summary judgment, holding Lot 812 was “necessary for intercity passenger rail transportation” under § 24311; compensation to be determined later.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Meaning of “necessary” in 49 U.S.C. § 24311	Amtrak: “necessary” means useful, appropriate, or convenient; courts should give limited review to Amtrak’s business judgment	Fluorine: “necessary” means absolute, last-resort indispensability; no deference—court should scrutinize necessity	Court: Middle ground — “necessary” requires a significant relationship to Amtrak’s intercity rail mission (more than mere usefulness, less than absolute necessity)
Level of judicial deference to Amtrak’s determination	Amtrak: limited review (akin to abuse of discretion); courts should defer to Amtrak’s judgment that property is needed	Fluorine: little or no deference; courts must closely review Amtrak’s internal decisionmaking and statutory interpretation	Court: Amtrak gets no special sovereign-style deference; review is substantive to ensure statutory limits but not hyper-technical review of process
Whether § 24311 differs for railroad vs non-railroad property takings	Amtrak: statutory structure shows similar substance of “necessary” across both procedures; railroad takings get administrative presumption but substance aligns	Fluorine: Because railroad takings receive a presumption via the STB, non-railroad takings should require stricter proof of need	Court: Absence of administrative presumption for non-rail property doesn’t mean a stricter substantive standard; same substantive test applies
Application to Lot 812 (REA Building)	Amtrak: Lot 812 has a direct operational nexus (leased space, easements, underpass access, role in Master Plan) and ownership gives needed flexibility—hence necessary	Fluorine: Amtrak could use easements, leases, or seek clarification of interests; alleged profit motive and failure to analyze parcels separately show lack of necessity	Court: Undisputed facts show Lot 812 has a significant relationship to Amtrak’s intercity rail operations; condemnation allowed under § 24311

Key Cases Cited

United States v. Carmack, 329 U.S. 230 (distinguishes sovereign eminent-domain delegations from limited private grants)
National R.R. Passenger Corp. v. Two Parcels of Land, 822 F.2d 1261 (2d Cir.) (Amtrak takings require less deference than sovereign takings; focuses on relationship to statutory goals)
National R.R. Passenger Corp. v. Boston & Maine Corp., 503 U.S. 407 (Supreme Court found prior statute ambiguous and upheld a reading treating “required” as “useful or appropriate”)
United States v. Comstock, 560 U.S. 126 (discusses historical meanings of “necessary” as “convenient or useful”)
McCulloch v. Maryland, 17 U.S. (4 Wheat.) 316 (groundwork for broad/functional reading of “necessary”)
Commissioner v. Heininger, 320 U.S. 467 (interpreting “necessary” business expenses as “appropriate and helpful”)
SEC v. Chenery Corp., 318 U.S. 80 (review limited to the grounds on the record)
Lebron v. Nat’l R.R. Passenger Corp., 513 U.S. 374 (Amtrak’s governmental status varies by context)