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106 Fed. Cl. 635
Fed. Cl.
2012
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Background

  • Whispell brings rails-to-trails takings claims after converting a railroad right-of-way to a trail under the Trails Act Amendments.
  • Alton’s claim: the taking and measure of just compensation for the land underlying a railroad easement converted to a perpetual trail.
  • The court previously held Tampa & Gulf Coast’s interest to be an easement, not fee simple, and that the easement did not cover trail use.
  • Alton was found to own the land underlying the easement in fee simple at the time of the taking, entitling him to compensation.
  • The dispute centers on how to value the property in the “before” condition: with or without the railroad easement.
  • The court addresses whether abandonment proof is required and what constitutes the proper damage measure under the Trails Act.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Valuation of the 'before' condition Alton: unencumbered fee simple value before taking. Alton’s prior easement must be valued in the before condition. Before condition unencumbered value adopted.
Abandonment proof requirement Abandonment proof not required; NITU blocks reversion. Abandonment must be proven under state law for damages. Abandonment proof not required for damages.
Existence of taking given easement scope Liability exists due to NITU; easement not include trail. Taking only if abandonment would have occurred; scope uncertain. Taking liability established under Preseault II two-prong test.
Measure of just compensation Difference between fee simple value and value burdened by trail easement. Difference between fee simple value and value with easement including railroad possibility. Just compensation is the value difference between fee simple and perpetual trail easement.
Relevance of League Declaration League declaration is relevant to abandonment intent. League declaration is irrelevant to damages if abandonment is not considered. League Declaration deemed moot; not necessary to damages analysis.

Key Cases Cited

  • Caldwell v. United States, 391 F.3d 1226 (Fed.Cir.2004) (abandonment framework and takings under Trails Act)
  • Preseault v. United States, (Preseault II), 100 F.3d 1525 (Fed.Cir.1996) (three-part inquiry; scope, termination, abandonment)
  • Ladd v. United States, 630 F.3d 1015 (Fed.Cir.2010) (NITU blocks state-law reversion; taking when reversion would have vested)
  • Toews v. United States, 376 F.3d 1371 (Fed.Cir.2004) (limitations on abandonment consideration; scope of easement)
  • Macy Elevator v. United States, 105 Fed.Cl. 195 (2012) (before-condition measured as unencumbered land when Trails Act blocks reversion)
  • Raulerson v. United States, 99 Fed.Cl. 9 (2011) (damages measured by unencumbered fee interest despite easement)
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Case Details

Case Name: Whispell Foreign Cars, Inc. v. United States
Court Name: United States Court of Federal Claims
Date Published: Aug 22, 2012
Citations: 106 Fed. Cl. 635; 2012 WL 3591096; 2012 U.S. Claims LEXIS 1004; No. 09-315 L
Docket Number: No. 09-315 L
Court Abbreviation: Fed. Cl.
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    Whispell Foreign Cars, Inc. v. United States, 106 Fed. Cl. 635