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Thomas v. United States
106 Fed. Cl. 467
Fed. Cl.
2012
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Background

  • Rails-to-Trails takings case under the Trails Act railbanking provisions (16 U.S.C. § 1247(d)).
  • Plaintiffs claim government action to convert a railroad right-of-way into a recreational trail extinguished reversionary interests, constituting a taking under the Fifth Amendment.
  • CSXT owns portions of the rail corridor in fee; other segments are easements by prescription, condemnation, or discretionary conveyances.
  • NITU/railbanking issued 2007–2009 enabling interim trail use; trail use agreement transferred a 7.08-mile segment to a trail operator in 2009.
  • Crews and Thomas plaintiffs challenge ownership of reversionary interests in Mullins/Small easement and seek compensation for alleged takings.
  • Court granted partial summary judgment to some plaintiffs and denied others, clarifying ownership and scope of easements under Tennessee law.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Who owns the reversionary fee underlying Mullins/Small easement? Crews claim Crews own reversionary interest as heirs of Mullins. Thomas own reversionary interest as adjacent landowners; easement terminology favors Thomas. Thomas have superior claim to the fee underlying Mullins/Small easement; Crews retain interest only in adjacent depot parcel.
Do Graff and Golightly deeds limit to railroad purposes only? Thomas contend deeds grant only railroad-purpose easements. Government argues deeds are general right-of-way easements, not limited to railroad use. Graff and Golightly easements are limited to railroad purposes under Tennessee law.
Whether railbanking and trail use exceed the scope of railroad-purpose easements? Trail use outside railroad purposes constitutes a taking. Railbanking is within scope as railroad maintenance under state law. Trail use and railbanking exceed the scope of railroad-purpose easements; constitutes a taking.
Is the government liable for Takings liability based on railbanking and trail use? Taking occurs when Trails Act action extinguishes state-law reversionary rights. Otherwise no liability if within easement scope. Government liable for taking; takings accrue from action that destroys state-defined property rights.

Key Cases Cited

  • Preseault v. United States, 494 U.S. 1 (U.S. 1990) (rail-to-trails takings framework for EUs and reversionary interests)
  • Preseault II v. Interstate Commerce Comm’n, 100 F.3d 1525 (Fed. Cir. 1996) (whether easements are limited to railroad purposes or include future recreational-trail use)
  • Ladd v. United States, 630 F.3d 1015 (Fed. Cir. 2010) (taking occurs when trail use outside easement scope extinguishes state reversionary interests)
  • Smoky Mountain R.R. Co. v. Paine Oil Co., 496 S.W.2d 904 (Tenn. Ct. App. 1973) (bicycle path mention not within railroad operation; limits on railroad purposes easement")
  • Bell v. Tenn., 39 S.W.2d 1028 (Tenn. 1932) (right-of-way easements to railroads are for railroad purposes only")
  • McLemore v. Memphis & Charleston Ry. Co., 69 S.W. 338 (Tenn. 1902) (grant of right of way to railroad is easement; fee remains with grantor)
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Case Details

Case Name: Thomas v. United States
Court Name: United States Court of Federal Claims
Date Published: Aug 29, 2012
Citation: 106 Fed. Cl. 467
Docket Number: Nos. 10-54L, 10-459L
Court Abbreviation: Fed. Cl.