Federal Judge Certifies Class Action in Gratiot County Rail-Trail Compensation Case

    March 24, 2011

    WASHINGTON, DC – March 24, 2011 – Judge Francis J. Allegra of the US Court of Federal Claims certified a class action today in a lawsuit filed by several landowners against the federal government for compensation for the taking of their property along the abandoned railroad corridor being developed into a public-recreational trail between Alma and Elwell.

    Judge Allegra approved a class action consisting of all property owners who, on July 29, 2003, owned property along the 5.5. abandoned railroad right-of-way between Alma and Elwell.

    “We’re glad Judge Allegra rejected the government’s meritless and inconsistent arguments and allowed all of the Michigan landowners to be compensated for the land the federal government has taken from them,” said Arent Fox partner Thor Hearne, counsel for the landowners.

    In his published opinion, Judge Allegra wrote the US Justice Department’s argument was “odd” and stated that he was “unpersuaded” by the government’s argument against certifying a class. He also stated the Justice Department’s position in this case was inconsistent with the government’s previous position and “marks a departure” from the government’s position in other Trails Act takings cases.

    In 2009, several landowners filed a case against the federal government in the United States Court of Federal Claims in Washington DC. The federal government took these Michigan landowners’ property in violation of the Fifth Amendment when it allowed the railroad to sell the land to a trail group for a public-access recreation and snowmobile trail. Under Michigan law, the land underlying the right-of-way belongs to the adjoining landowners and they had the right to exclusive use and possession of this land when the railroad abandoned railroad operations across the right of way.

    The US Supreme Court, as well as the US Court of Appeals for the Federal Circuit have previously ruled in the Trails Act, which allows conversions of railroad rights-of-way to public recreational trails, often runs afoul of the Fifth Amendment which forbids the government from taking “private property” without paying “just compensation.”

    Hearne said that he will be working with the court to provide notice to all the affected landowners of their opportunity to now join the suit. “Recreational trails are a great thing,” said Hearne, “but those landowners whose property is taken to create them should be fairly compensated. That is what our Constitution requires.”

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