The National Trails System Act, commonly referred to as the “Rails-to-Trials Act” allows railroads to convert unprofitable railroad corridors into recreational trails.  Notably, this legislation was passed in 1983 without any Congressional hearings. 

The application of the Rails-to-Trails Act has caused many problems for adjacent landowners. First, the Act does not require any notification to adjacent landowners that a railroad corridor is being considered for conversion to a trail. Second, the Act does not allow landowners who object to a recreational trail running through their backyards or farms to object to the trail. Third, the Act does not take into account that in many cases the railroad does not even own the railroad corridor, but rather only has an easement to use the corridor for railroad purposes only.

In many cases, adjacent landowners have property interests in the railroad corridor.  Under the laws of most states, when a railroad acquired only an easement, either by deed or condemnation, that easement is extinguished upon the railroad’s abandonment of the right-of-way.  This means that when the corridor is no longer used for railroad purposes, the railroad’s right to use the property is terminated and the land reverts back to the adjacent landowner.

When a railroad corridor has been converted to a recreational trail under the Rails-to-Trails Act, adjacent landowners may have claim for compensation from the federal government for a “taking” of their property interests.  The United States Supreme Court has held that the government, pursuant to the Fifth Amendment to the Constitution, must compensate adjacent landowners if, under state law, the landowners had property interests in the railroad corridor and those property interests have been taken through the Rails-to-Trails Act.

The Cullen Law Firm has represented landowners in several states seeking compensation for Rails-to-Trails takings. The firm successfully represented a class of several hundred landowners on the Panhandle Trail outside of Pittsburgh. In that case, the railroad, the Pittsburgh & Steubenville Railroad obtained the right to use land for a railroad in the mid-1860's. While the railroad purchased some of the land in fee simple, much of it was acquired by condemnation, release deed, or by easement. After moving for summary judgment in the U.S. district court, the government agreed to settle the case and paid qualifying landowners 80% of the appraised value of the corridor.

Landowners adjacent to railroad corridors may find themselves in a similar situation.  According to the federal government, there are currently more than 11,000 miles of trails on former railroad corridors.  Moreover, there are more than 1200 rails-to-trails projects in the works nationwide. 

To learn more about The Cullen Law Firm’s Rails-to-Trials practice contact David A. Cohen at dac@cullenlaw.com.