CSX Transportation, Inc. v. Zayo Group, LLC
CourtCourt of Appeals for the Seventh Circuit
Date FiledAugust 7, 2026
Docket25-1670
JudgePryor
StatusPublished
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Full Opinion
In the
United States Court of Appeals
For the Seventh Circuit
____________________
No. 25-1670
CSX TRANSPORTATION, INC.,
Plaintiff-Appellant,
v.
ZAYO GROUP, LLC,
Defendant-Appellee.
____________________
Appeal from the United States District Court for the
Southern District of Indiana, Indianapolis Division.
No. 1:21-cv-02859 — James R. Sweeney II, Chief Judge.
____________________
ARGUED FEBRUARY 12, 2026 — DECIDED AUGUST 7, 2026
____________________
Before EASTERBROOK, PRYOR, and MALDONADO, Circuit
Judges.
PRYOR, Circuit Judge. CSX Transportation, Inc., operates
railroad lines across the country, including throughout Indi-
ana. In numerous spots around the state, Zayo Group, LLC,
installed fiber optic cables under CSX’s railroad tracks with-
out permission from CSX to do so and without paying CSX’s
licensing fee or engaging in the railroad’s safety review pro-
cess. Relying on Indiana law, CSX claims Zayo could not take
2 No. 25-1670
these actions without violating the scope of CSX’s easements
on the land or the permissions given to CSX by the landown-
ers to use the land. According to CSX, these property rights
gave CSX the right to exclude Zayo from the air above and the
ground below CSX’s tracks and the right to charge Zayo a li-
censing fee for its cable installations.
The district court disagreed, holding that CSX lacked
standing to assert either of these property rights. The district
court also held that CSX’s claims pertaining to Zayo cable in-
stallations occurring outside the applicable statute of limita-
tions were time-barred, reasoning that these installations did
not constitute “continuing trespasses” that prevented the
claims from accruing.
CSX now appeals, maintaining that its easements neces-
sarily include the right to exclude third parties from installing
fiber optic cables above and below its tracks and the right to
charge licensing fees for those installations. CSX also con-
tends its claims related to cables installed outside the applica-
ble limitations periods are not time-barred. But because nei-
ther property right asserted by CSX is necessarily included in
the scope of its railroad easements under Indiana law and
Zayo’s installations do not constitute “continuing trespasses,”
we affirm.
I. BACKGROUND
A. Factual Background
CSX and its predecessor railroads have operated rail lines
throughout Indiana and Illinois for more than a century.
Those rail lines run through rail corridors, which have a few
typical hallmarks: a long, continuous right of way along a lin-
ear path; train tracks running atop that right of way; and a
No. 25-1670 3
surrounding buffer zone. CSX’s property interest in its rail
corridors varies from parcel to parcel. These interests may in-
clude owning the parcel in fee simple, possessing a rail corri-
dor easement, possessing a leasehold interest, or possessing
trackage rights from another railroad.
Public utilities use these railroad corridors to run their in-
frastructure between locations. Zayo is a public utility provid-
ing telecommunications services. Zayo installs fiber optic ca-
bles and other telecommunications equipment throughout In-
diana. It does so by either stringing fiber cable between utility
poles for aerial installations or boring fiber cable under-
ground for subterranean installations. Aerial installations are
visible from the ground. Subterranean installations involve
installing cable at a depth of at least 30 to 36 inches, and
Zayo’s underground fiber installations are often installed
deeper. The installations are typically marked above-ground
using cable markers. Installations can take from a few days to
a few weeks to complete. After the initial installation is com-
plete, Zayo returns regularly to repair, replace, and maintain
its cables.
Zayo’s fiber optic cables cross and run parallel to railroad
corridors, including those of CSX. CSX requires third parties
like Zayo to coordinate with it on the nature and timing of
installation construction, both to keep third-party construc-
tion crews safe and to prevent disruptions of CSX’s railway
operations. CSX also charges licensing fees for utility installa-
tions that cross or run parallel to its rail corridor.
B. Procedural Background
CSX sued Zayo in November 2021 in the United States Dis-
trict Court for the Southern District of Indiana. CSX alleged
4 No. 25-1670
that Zayo installed underground fiber optic cables under a
CSX railroad corridor in Greencastle, Indiana (the “Jackson
Street” location) without receiving approval to do so. CSX
also alleged Zayo failed to engage in the necessary safety re-
view process or pay CSX’s licensing fees. In addition, CSX
contended that Zayo struck and destroyed CSX train signal
cables and underground wires while making an unauthor-
ized installation on CSX property in Montrose, Illinois.
Specifically, CSX brought ten counts against Zayo:
(1) criminal trespass under the Indiana Crime Victim’s Relief
Act (“ICVRA”); (2) railroad mischief under ICVRA; (3) decep-
tion under ICVRA; (4) theft/criminal conversion under
ICVRA; (5) civil trespass to land; (6) civil trespass to CSX com-
ponents; (7) unjust enrichment; (8) failure to pay rent; (9) de-
claratory judgment related to Zayo’s “unilateral and unau-
thorized actions”; and (10) declaratory judgment as to the
Jackson Street location in Greencastle, Indiana. CSX later
identified numerous additional unauthorized installations
made by Zayo, so CSX amended its complaint to include
claims for those sites, too.
The district court eventually dismissed all of CSX’s Illi-
nois-based claims for lack of personal jurisdiction. 1 Accord-
ingly, the lawsuit before us relates only to Zayo’s Indiana in-
stallations.
A set of district court rulings shrank the scope of this case
significantly.
1
CSX later brought the Illinois-based claims in a separate case in the
United States District Court for the Northern District of Illinois. See CSX
Transp., Inc. v. Zayo Grp., LLC, No. 1:25-cv-1824 (N.D. Ill. filed Feb. 21,
2025).
No. 25-1670 5
1. Criminal Trespass to Land, Civil Trespass to Land, and
Rent Claims (Counts I, V, and VIII)
Zayo moved for partial summary judgment on CSX’s
claims for trespass to land and rent as to the railroad’s Indiana
properties where it possessed only an easement. 2 CSX main-
tained that its railroad easements gave it an exclusive and
possessory interest in the land over which its railroad tracks
ran, including the air above and the ground below its tracks.
CSX argued this is true even if the language of those ease-
ments made no mention of such an exclusive possessory in-
terest. According to CSX, that meant Zayo could not install its
cables without CSX’s permission and the railroad had the
right to eject Zayo. CSX contended that these property rights
underpinned its trespass to land and rent claims.
The district court held CSX did not have standing to assert
its trespass to land and rent claims for properties where it pos-
sessed only an easement. 3 The district court observed that
CSX had not pointed to language in any of its easements that
exhibited the exclusivity it claimed. The district court then ex-
plained that even if CSX was entitled to exclusive use of the
surface of its railroad corridors for which it possessed an ease-
ment, that entitlement did not necessarily mean CSX had ex-
clusive use of the air above or the ground below its tracks.
That mattered because Zayo had installed fiber optic cables
only above or below the railroad corridor surface—not on it—
2
Zayo also moved for summary judgment on additional grounds, most of
which are not relevant to this appeal.
3
District Judge Jane Magnus-Stinson ruled on this motion in April 2024.
The case was later reassigned to Chief District Judge James R. Sweeney II
in July 2024.
6 No. 25-1670
and those installations had not disrupted CSX’s railroad op-
erations. Thus, the court found CSX had not provided any
proof that Zayo interfered with CSX’s exclusive right to the
surface of the land. CSX’s failure to demonstrate that its “pos-
sessory” interest in the land had been impacted, the district
court reasoned, was fatal to its trespass to land and rent
claims. From this, the court concluded CSX did not have
standing to bring these claims and partially dismissed Counts
I, V, and VIII.
Following its partial summary judgment ruling, the dis-
trict court denied CSX’s motion to modify the court’s sum-
mary judgment order to allow interlocutory review.
2. Claims Barred by the Applicable Statute of Limitations
In the district court’s partial summary judgment ruling, it
also granted Zayo’s summary judgment motion as to CSX
sites where Zayo installed fiber optic cables outside the appli-
cable limitations period. The limitations period for the theft of
licensing rights and criminal trespass claims was two years,
see IND. CODE § 34-11-2-4, and the period for the civil trespass
and rent claims was six years, see id. § 34-11-2-7. CSX did not
dispute that some of Zayo’s installations occurred outside of
those limitations periods. Instead, CSX argued the statute of
limitations had not expired under Indiana’s continuing tres-
pass doctrine, which would mean the limitations periods
would not begin to run until Zayo removed its installations
from CSX’s rail corridors.
The court rejected that argument. First, it stated that the
continuing trespass doctrine was governed by federal law.
The court then acknowledged the Indiana Court of Appeals’
application of the doctrine but found it did not apply because
No. 25-1670 7
CSX’s claims centered on Zayo’s cable installations, which
had a clear ending date for each site. The court observed that
Zayo occasionally comes back to those sites for maintenance
and repairs, but CSX’s claims were not aimed at those recur-
ring activities. Based on this, the court granted Zayo’s motion
for partial summary judgment as to this issue. It did so on the
following claims for all sites where CSX had not created a fact
issue about whether it should have known of Zayo’s installa-
tions: (1) criminal trespass and theft of licensing rights claims
related to installations occurring before November 16, 2019;
and (2) civil trespass to land, civil trespass to components,
and rent claims related to installations occurring before No-
vember 16, 2015.
3. Theft of License Claim (Count IV)
After the district court’s partial summary judgment rul-
ing, Zayo filed a motion under Rule 12(b)(1) of the Federal
Rules of Civil Procedure to dismiss for lack of subject matter
jurisdiction CSX’s claim for theft of license (Count IV) at sites
for which CSX possessed only an easement. 4 The motion was
referred to the magistrate judge, who, after an evidentiary
hearing, recommended granting the motion. The magistrate
judge concluded nothing in Indiana railroad law confirms
that a railroad company holding only an easement had the
“right to license or restrict others from utilizing the surface,
subsurface, or air above their easement” when the operation
of the railroad is not hindered. From this, the magistrate judge
4
Zayo also moved to dismiss CSX’s claim for civil trespass to components
(Count VI). The magistrate judge recommended dismissing that claim for
lack of standing. The district court adopted that recommendation without
objection from CSX.
8 No. 25-1670
recommended dismissing for lack of standing CSX’s claims
for theft of licensing rights at sites where CSX had an ease-
ment. The district court adopted the magistrate judge’s report
and recommendation.
* * *
The parties subsequently settled and conditionally stipu-
lated to the dismissal of claims still remaining for trial. This
conditional stipulation allowed CSX to appeal the district
court’s pretrial rulings on Zayo’s dispositive motions.
This appeal followed.
II. ANALYSIS
“We review de novo a trial court’s summary judgment rul-
ing.” Pryor v. Corrigan, 124 F.4th 475, 486 (7th Cir. 2024) (cita-
tions omitted). Summary judgment is appropriate when no
material facts are disputed and the moving party is entitled to
judgment as a matter of law. FED. R. CIV. P. 56(a). We also re-
view de novo the district court’s dismissal for lack of subject
matter jurisdiction under Federal Rule of Civil Procedure
12(b)(1), accepting as true the non-movant’s well-pleaded fac-
tual allegations. Dernis v. United States, 136 F.4th 714, 716 (7th
Cir. 2025).
This is a diversity jurisdiction case, and CSX’s appeal
raises questions of Indiana state law. Thus, our task is to use
our own best judgment to determine how the Indiana Su-
preme Court would rule. See Cannon v. Armstrong Containers
Inc., 92 F.4th 688, 706 (7th Cir. 2024). If, however, the Indiana
Supreme Court has not spoken on this issue, we must attempt
to predict how the state court would decide given the chance.
Abstract Title Guar. Co. v. Chi. Ins. Co., 489 F.3d 808, 811 (7th
No. 25-1670 9
Cir. 2007). We do this by looking to intermediate appellate
courts in the state for persuasive guidance. Giovannelli v.
Walmart Inc., 164 F.4th 1052, 1054–55 (7th Cir. 2026); In re Zim-
mer, NexGen Knee Implant Prods. Liab. Litig., 884 F.3d 746, 751
(7th Cir. 2018). But ultimately, our inquiry centers on this
question: “what would the highest court of the state do if the
present case was now before that court?” Green Plains Trade
Grp., LLC v. Archer Daniels Midland Co., 90 F.4th 919, 928 (7th
Cir. 2024).
CSX makes three principal arguments on appeal. First, it
argues that under Indiana law, its easements necessarily in-
clude the right to exclude third parties from installing fiber
optic cables above or below its railroad tracks. Second, it ar-
gues that its easements necessarily include the right to license
those cable installations. And third, it argues Zayo’s cable in-
stallations constitute “continuing trespasses” that prevented
its trespass, rent, and licensing theft claims from accruing un-
til Zayo removes those installations. We address each argu-
ment in turn.
A. Right to Exclude
For Indiana properties where CSX holds only an ease-
ment, the parties agree CSX’s criminal trespass, civil trespass
to land, and rent claims hinge on whether the railroad com-
pany holds the right to exclude Zayo from the air above and
the ground below its railroad tracks. CSX concedes that none
of its easements contain express language granting it exclu-
sive control over those areas. So, for CSX to be able to exclude
third parties like Zayo from those areas, its railroad ease-
ments must necessarily include that exclusionary right. Put
differently, the key question is whether the right to exclude
10 No. 25-1670
third parties from above or below the railroad’s tracks falls
within the scope of a railroad easement under Indiana law.
Under Indiana law, an easement is
“[a]n interest in land owned by another person,
consisting in the right to use or control the land,
or an area above or below it, for a specific lim-
ited purpose (such as to cross it for access to a
public road). The land benefitting from an ease-
ment is called the dominant estate; the land bur-
dened by an easement is called the servient es-
tate.” The “scope” of an easement refers to the
extent or boundaries of that “specific limited
purpose” which benefits the dominant estate
and burdens the servient estate.
Howard v. United States, 964 N.E.2d 779, 781 n.2 (Ind. 2012)
(emphasis in original) (quoting BLACK’S LAW DICTIONARY
585–86 (9th ed. 2009)); see also Close Armstrong, LLC v.
Trunkline Gas Co., LLC, 172 F.4th 516, 522 (7th Cir. 2026) (“An
easement grants a person or entity ‘the right to use another’s
land for a specified purpose.’” (quoting Town of Ellettsville v.
DeSpirito, 111 N.E.3d 987, 990 (Ind. 2018))). Put in this case’s
terms, CSX’s railroad corridor is the dominant estate, and the
land over which that corridor runs is the servient estate.
An easement’s scope is determined “by the purpose
served by the easement.” Howard, 964 N.E.2d at 781 (citations
omitted); see also N.Y. Cent. R.R. v. Yarian, 39 N.E.2d 604, 606
(Ind. 1942) (“It is sometimes said that reservations of ease-
ments are strictly limited to the purposes in the minds of the
parties, but we believe a proper application of the rule puts
the limitation not upon the character of traffic upon a reserved
No. 25-1670 11
way, but upon the purpose to be served by the traffic.”). This
is because easements usually “arise to fill some need or serve
some purpose.” Howard, 964 N.E.2d at 781–82 (quoting Klotz
v. Horn, 558 N.E.2d 1096, 1099 (Ind. 1990)). “That purpose,
whether expressed in the grant, implied, or acquired through
prescription, is the focal point in the relationship which exists
between the titleholders of the dominant and servient es-
tates.” Id. (quoting Klotz, 558 N.E.2d at 1099).
In Howard, the Indiana Supreme Court defined the “pur-
pose” of an easement acquired to operate a railway line. Id. at
783. There, in a “[r]ails to [t]rails” case, the court considered
whether the scope of railroad easements under Indiana law
included railbanking and interim trail use pursuant to the Na-
tional Trails System Act, 16 U.S.C. § 1247. Id. at 780–81. The
court held those uses fell outside a railroad easement’s scope.
Id. at 782–83. According to the Indiana Supreme Court, a rail-
road easement is acquired for the purpose of “the transporta-
tion of goods through the operation of a railroad line.” Id. at
783. And a public trail involves “recreation, not transporta-
tion.” Id. at 784 (citation modified). Thus, the state court re-
jected the contention that a railroad easement could be “recast
for use as a public recreational trail without exceeding the
scope of the easement and infringing the rights of the land-
owners.” Id. at 783.
Howard’s definition of a railroad easement’s purpose—
transporting goods by operating a railroad line—is consistent
with Indiana case law grappling with railroad easements’ lim-
itations. For example, the Indiana Supreme Court in Julien v.
Woodsmall held that a railroad with only an easement had no
right to remove valuable ice from the surface of its corridor.
82 Ind. 568, 571 (1882). The right to take that ice belonged to
12 No. 25-1670
the landowner, so the railroad company could not remove it
from the corridor “except for the construction, repair or oper-
ation of its road.” Id. That limitation is consistent with the In-
diana Supreme Court’s reasoning in Smith v. Holloway, where
the court explained that “[t]he owner of the fee remains the
owner of springs, streams, minerals, and the like” because “all
that he grants is an easement,” so the landowner “cannot in-
terfere with the free use of the [railroad’s] right of way; but,
subject to this use, he may make all lawful use of the land.”
24 N.E. 886, 886 (Ind. 1890) (discussing stream of water flow-
ing across the land). And this same court echoed that princi-
ple in Cincinnati, C., C. & St. L. Railway v. Simpson, explaining
that “where an easement for a right of way is granted a rail-
way company across lands of another, the owner of the fee
remains the owner of all mineral in the land, and may make
all lawful use of the land so long as he does not interfere with
the free use of the right of way.” 104 N.E. 301, 306 (Ind. 1914). 5
These cases stand for the proposition that a railroad has
wide-ranging authority to use the surface of its railroad corri-
dor for its operations, but the servient estate owner retains all
other rights—including, but not limited to, extraction of nat-
ural resources—that do not impede railroad operations.
That proposition accords with a line of Indiana Supreme
Court cases analyzing infrastructure installed below a rail-
road corridor. In Cleveland, Cincinnati, Chicago & St. Louis Rail-
way Co. v. Smith, a property owner sought to run pipes be-
neath a railroad’s right of way to pump spring water. 97 N.E.
5
Generally speaking, the landowners of the servient estate own that land
in fee simple, which is “the broadest property interest allowed by law.”
Fee Simple, BLACK’S LAW DICTIONARY (12th ed. 2024).
No. 25-1670 13
164, 172 (Ind. 1912). The Indiana Supreme Court explained
that “[i]n view of the responsibility of railway companies for
safely carrying persons and property, and the great hazard to
life and property from obstructions on the tracks, it must be
held that the company’s right of possession of the surface of
the right of way is practically exclusive.” Id. But the court
drew a contrast with the subterranean pipes, reasoning the
property owner “might at least conduct the water from the
stream through pipes onto his land outside the right of way,
without any practical interference with the company’s exclu-
sive possession of the appropriated strip on which the stream
is now flowing.” Id. at 172–73. The property owner could en-
gage in this activity so long as he did not interfere with the
railroad’s right to exclusive possession of its railroad corridor
surface.
Consumers’ Gas Trust v. American Plate Glass Co. is also in-
structive. There, the court held that a fee owner’s lessee could
enjoin a railroad with an easement from sinking a gas well in
the railroad’s right of way. 68 N.E. 1020, 1021–22 (Ind. 1903).
This holding demonstrates that a railroad possessing only an
easement does not necessarily possess exclusively the ground
below its tracks.
Indeed, even a railroad owning in fee the land on which
its tracks run may not necessarily be entitled to prevent an
easement holder from running pipes below the tracks. In New
York Central Railroad Co. v. Yarian, the railroad possessed in
fee a strip of ground running through a farm. 39 N.E.2d at 605.
That strip was intended for use as the railroad’s corridor, and
an easement was reserved for the farmer so he could use both
sides of his farmland. Id. The farmer sought electricity in his
farmhouse, so he installed an iron pipe below the railroad
14 No. 25-1670
tracks to run electrical cables up to the house. Id. The railroad
sued, arguing this underground piping fell outside the ease-
ment’s purposes of farming and domestic uses. Id.
The Indiana Supreme Court rejected the railroad’s argu-
ment. Id. at 606. The conveyance of the easement, made in
1871, arose out of the farmer’s need for a crossing to access
divided portions of the farm and the adjacent highway. Id.
The court recognized that the parties to the 1871 conveyance
may not have envisioned a farmer’s need for electricity to
manage his farm and farmhouse decades later, but such a
need was nonetheless consistent with the easement’s original
purpose. Id. From this, the court concluded the pipes would
cast “no additional burden” on the railroad. Id. The Indiana
Supreme Court did, however, reverse the judgment to have
the lower court evaluate whether the appellee’s installation
“interfere[d] with the reasonable operation of the railroad,”
as the railroad had also argued the piping was a dangerous
nuisance. Id. at 607.
These three subterranean installation cases, taken to-
gether, stand for the proposition that non-railroad servient es-
tates retain all other rights that come with fee ownership. This
includes the right to place—or allow third parties to place—
installations that do not interfere with the railroad’s opera-
tions.
CSX takes a much more expansive view of the rights af-
forded to it by its railroad easements. It argues a railroad ease-
ment is special under Indiana law and affords more property
rights than other easement types. To CSX, a railroad easement
is equivalent to fee simple ownership in all ways except one:
under a railroad easement, the servient estate retains the right
to natural resources on the railroad’s right of way.
No. 25-1670 15
That distinction, however, is not borne out in Indiana rail-
road law. The touchstone for determining the scope of an
easement, including a railroad easement, is looking to the
purpose of that easement at the time it was granted. Howard,
964 N.E.2d at 783. While we recognize a long line of Indiana
Supreme Court decisions revealing that railroads have wide
latitude to demand exclusive use of their easement’s surface
for their operations, see Julien, 82 Ind. at 571–72; Smith, 24 N.E.
at 886; Simpson, 104 N.E. at 306, this right is limited by the
purpose of the easement at the time of its acquisition, see How-
ard, 964 N.E.2d at 783; Yarian, 39 N.E.2d at 606. And by the
same token, non-railroad servient estates retain all other
property rights otherwise afforded to them by virtue of fee
ownership, including the placement of subterranean installa-
tions that do not interfere with the railroad’s operations. See
Consumers’ Gas Trust, 68 N.E. at 1021–22.
CSX has a point that many of these Indiana Supreme Court
cases involve natural resources. But the reasoning of those
cases is not limited to just the extraction of natural resources.
CSX’s natural-resources-only theory of railroad easements is
also hard to square with Howard’s teachings about the pur-
pose of the easement. 964 N.E.2d at 783. CSX’s theory would
stretch the purpose beyond all recognition, stripping away
the ability of servient estates—or third parties with their per-
mission—to take many actions that do not otherwise disrupt
railroad operations.
CSX also argues that, as a matter of policy, its expansive
view of railroad easements would better mitigate safety risks
that may arise from its railroad operations. To be sure, the safe
operation of railroads requires diligent oversight by railroad
companies and regulators alike. For example, CSX inspects
16 No. 25-1670
and tests its equipment on a monthly, quarterly, annual, bien-
nial, and decennial basis, and federal regulations promul-
gated by the Federal Railroad Administration impose engi-
neering, inspection, and safety obligations on CSX, see, e.g.,
49 C.F.R. §§ 213, 233–36. But CSX goes further, arguing that
safety risks can be sufficiently mitigated only if its railroad
easements include the right to exclude others from above and
below the tracks.
CSX’s safety concerns are well taken but, in this context,
ultimately unpersuasive. It is undisputed that none of Zayo’s
Indiana cable installations have disrupted CSX’s railroad op-
erations. 6 And to the extent an existing or future third-party
installation does disrupt CSX’s operations, its railroad ease-
ments would plainly allow it to remedy that disruption. Un-
der Indiana law, the scope of a railroad easement does not un-
dermine CSX’s ability to safely operate its rail lines. See Louis-
ville & Ind. R.R. v. Ind. Gas Co., 829 N.E.2d 7, 11 (Ind. 2005)
(noting Indiana’s right of way statute and “common law pre-
cepts” protected the railroad’s interest “in the continued
peaceful and efficient use of its tracks to facilitate com-
merce”).
At bottom, the scope of CSX’s railroad easements does not
include the right to exclude third parties from the air above
and the ground below its railroad corridor, at least to the ex-
tent those third parties are not disrupting CSX’s railroad
6
CSX does allege that Zayo struck and destroyed CSX train signal cables
and underground wires while making an unauthorized installation on
CSX property in Montrose, Illinois. But the case before us relates only to
Zayo’s Indiana installations, and, as noted earlier, CSX has brought claims
related to Illinois sites in a separate case.
No. 25-1670 17
operations. That right remains with the non-railroad servient
estate. The district court correctly decided this legal question,
so we affirm as to this issue. 7
7
The district court, however, erred in dismissing CSX’s easement-based
criminal trespass, civil trespass to land, and rent claims for lack of stand-
ing. The crux of the district court’s reasoning rested on its finding that CSX
lacked the property right it asserted, rather than on any determination that
CSX had failed to advance a colorable claim to that right. That is typically
enough to show an injury-in-fact for purposes of Article III standing. See
Pit Row, Inc. v. Costco Wholesale Corp., 101 F.4th 493, 501 (7th Cir. 2024)
(“[A] litigant is not required to show that it will win in order to establish
standing.”); Protect Our Parks, Inc. v. Chi. Park Dist., 971 F.3d 722, 736 (7th
Cir. 2020) (holding allegations of a property right deprivation are typically
enough to show a cognizable injury, even if “the alleged property right …
is highly unusual, and one might be immediately skeptical about whether
it exists”). The district court should have dismissed these claims with prej-
udice on the merits, but instead it stated in its partial summary judgment
order that the claims were dismissed without prejudice for lack of stand-
ing. If the district court’s final judgment had also reflected this disposition,
we would have to consider whether it would be appropriate to modify the
judgment to a dismissal on the merits. See Matushkina v. Nielsen, 877 F.3d
289, 296–97 (7th Cir. 2017). But we need not reach that question because
there is nothing in the judgment to modify. The judgment, taken “on its
own terms,” Hoskins v. Poelstra, 320 F.3d 761, 763–64 (7th Cir. 2003), is si-
lent as to whether these claims were dismissed with or without prejudice,
as it appears to incorporate by reference all of the case’s dispositive orders
that dismissed claims. See also Paganis v. Blonstein, 3 F.3d 1067, 1069, 1071
(7th Cir. 1993) (explaining a “final judgment must be complete and self-
contained,” and it “should not incorporate any other document”). And the
district court, in substance, made a merits determination that CSX did not
possess the property right it asserted. See Protect Our Parks, 971 F.3d at
736–37. With that, we may affirm without further handwringing.
18 No. 25-1670
B. Right to License
Next, CSX argues Indiana courts recognize a railroad’s
right to license utility infrastructure placed above or below its
railroad corridor where it holds only an easement. CSX does
not argue that any of its easements contain express language
granting it this right. So, much like the discussion above about
the right to exclude, assessing CSX’s assertion of a right to
charge licensing rent still requires an inquiry into the scope of
railroad easements under Indiana law. That inquiry just cen-
ters on a different right—whether an Indiana railroad ease-
ment necessarily includes the right to license the installation
of fiber optic cables installed above or below CSX’s railroad
corridor.
Given our conclusion above that CSX’s railroad easements
do not necessarily allow it to exclude third parties from above
and below its tracks, it is hard to see how those same ease-
ments could allow CSX to charge a licensing fee for that same
area. Indeed, the “cardinal rule in property law is that one
cannot sell what one does not own.” Danaya C. Wright & Jef-
frey M. Hester, Pipes, Wires, and Bicycles: Rails-to-Trails, Utility
Licenses, and the Shifting Scope of Railroad Easements from the
Nineteenth to the Twenty-First Centuries, 27 ECOLOGY L.Q. 351,
389 (2000). The thrust of CSX’s argument relies on its conten-
tion that owners of the fee merely retain the right to remove
their natural resources from the railroad corridor. As already
discussed above, Indiana case law does not support that con-
tention. The purpose of a railroad easement is the operation
of a rail line, Howard, 964 N.E.2d at 783, and owners of the fee
retain all other rights consistent with that use. It stands to rea-
son, then, that owners of the fee also retain the right to charge
license rent to public utilities. Put another way, CSX’s
No. 25-1670 19
easements do not necessarily include the right to license the
air above and the ground below its railroad corridor.
This conclusion accords with Louisville & Indiana Railroad
v. Indiana Gas Co., an Indiana Supreme Court case providing
additional insight into how the court assesses the interplay
between railroads and utilities. See 829 N.E.2d at 8. There, a
gas company laid pipe along a county road that crossed a rail-
road’s tracks, and the railroad argued the gas company owed
it rent for passing the pipe under its tracks. Id. The court held
that the gas company did not owe rent to the railroad. Id. Two
grounds supported this holding. First, the court explained
that Indiana’s right of way statute authorized the gas com-
pany, a public utility, to enter the county road and install pip-
ing along the roadway. 8 Id. at 11. Second, the court reasoned
that Indiana courts have understood Indiana’s right of way
statute “as contemplating that the public utility would not
need to compensate the landowner, inasmuch as such a use
does not place an additional burden on the subservient land.”
Id. In so reasoning, the court relied on Fox v. Ohio Valley Gas
Corp., 235 N.E.2d 168, 172 (Ind. 1968), which held that an
owner of the fee was not entitled to additional compensation
when a gas company laid its pipe in the county road crossing
his land. That principle from Fox meant the court in Louisville
& Indiana Railroad did not have to decide what type of interest
the railroad had in the land over which its tracks ran.
8
This statutory provision stated in pertinent part: “Public and municipally
owned utilities are authorized to construct, operate, and maintain their
poles, facilities, appliances, and fixtures upon, along, under, and across
any of the public roads, highways, and waters outside of municipalities,
as long as they do not interfere with the ordinary and normal public use
of the roadway.” IND. CODE § 8-20-1-28.
20 No. 25-1670
829 N.E.2d at 11–12. The court explained that if the railroad
“owns the land in fee, Fox applies directly, and the [r]ailroad
is not entitled to compensation beyond what it, or its prede-
cessor in interest, received when the right-of-way was estab-
lished.” Id. at 11. On the other hand, if the railroad merely
“possesses an easement, it does not possess rights greater
than that of the underlying” owner of the fee. Id. Either way,
the railroad had no right to exclude the gas company. Id. at
12. And because the pipeline “[did] not place an additional
burden on the land,” the railroad was not entitled to collect
license rent, either. Id.
Louisville & Indiana Railroad does not directly decide the
case before us—the public utility there installed its pipes
along a county road, which, for the claims CSX challenges on
appeal, Zayo did not do. But this case nonetheless under-
mines CSX’s contention that its easements necessarily carry
with them the right to charge license rent for a public utility’s
infrastructure installed below the railroad’s tracks.
CSX points to three Indiana cases in rebuttal, but none car-
ries the day for it. First, CSX offers Consumers’ Gas Trust for
the proposition that servient estates do not hold the right to
license utility infrastructure installed below a railroad corri-
dor, so, in CSX’s view, railroads must hold that right. That
argument significantly overreads this case. See Consumers’ Gas
Trust, 68 N.E. at 1021–22. In Consumers’ Gas Trust, the Indiana
Supreme Court held that a railroad with an easement for its
corridor could be enjoined by the gas company lessee of the
owner of the fee from drilling a gas well within the railroad’s
right of way because such drilling would impair the lessee’s
proprietary interest. Id. Clearly, those are not the facts of this
case and Consumers’ Gas Trust is thus distinguishable.
No. 25-1670 21
Second, CSX puts forward Ritz v. Indiana & Ohio Railroad,
which involved (among other things) a landowner’s trespass
claim against a utility company for cutting down trees and
placing a utility pole in a contested property area that con-
tained, according to the parties, a railroad’s right of way.
632 N.E.2d 769, 775–76 (Ind. Ct. App. 1994). Relying on Indi-
ana’s right of way statute, the appellate court explained that
“a utility may utilize a public right of way without the consent
of the servient landowner who claims that such a use is an
additional burden and servitude to the fee which is subject to
the easement for highway purposes.” Id. at 775 (citing Fox,
235 N.E.2d at 172–73, and Deetz v. N. Ind. Fuel & Light Co.,
545 N.E.2d 1103, 1105 (Ind. Ct. App. 1989)). The court con-
cluded this analysis applied “with equal force” to the plain-
tiff’s trespass and takings claims as related to the railroad’s
right of way. Id. In examining this portion of the servient land-
owner’s claim, the court reasoned “[n]o additional burden is
cast upon the fee beyond that which was contemplated and
paid for in the original taking” when there was “no dispute
over whether the railroad [had] a right-of-way or [had] per-
mitted the utilities to utilize its easement,” regardless of
whether the railroad owned the fee. Id. at 775–76 (citing Fox,
235 N.E.2d at 172–73, and Yarian, 39 N.E.2d at 606–07). But
Ritz does not suggest, as argued by CSX, that a railroad re-
tains the right to license utility infrastructure. Instead, all Ritz
stands for is that a utility is authorized by Indiana statutory
and common law to make use of a public right of way without
the consent of the servient landowner. Id. In that way, Ritz is
no different than Louisville & Indiana Railroad. See id.; Louisville
& Ind. R.R., 829 N.E.2d at 11–12.
Third, CSX relies on Calumet National Bank v. AT&T,
682 N.E.2d 785 (Ind. 1997), a case interpreting a previous
22 No. 25-1670
version of Indiana’s Abandoned Railroad Rights-of-Way Act.
There, a railroad company and a telecommunications com-
pany entered a licensing agreement in 1984 authorizing the
telecommunications company to install and operate a fiber
optic system along the railroad’s right of way. Id. at 787. The
railroad had abandoned the right of way by 1985, but the two
companies amended the licensing agreement in 1988 to in-
clude the stretch of right of way at issue in the case. Id. at 787,
791. The Indiana Supreme Court held this license amendment
was not enforceable. Id. at 791. The court reasoned the railroad
“had no interest” in the right of way upon its abandonment
in 1985, and a “license granted by a railroad company to a
communications company” is valid only if the railroad com-
pany grants the license “whi