BAILEY FARM, LLC v. United States
CourtUnited States Court of Federal Claims
Date FiledAugust 3, 2026
Docket24-1060
JudgeElaine Kaplan
StatusPublished
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Full Opinion
In the United States Court of Federal Claims
)
BAILEY FARM, LLC, et al., )
)
Plaintiffs, )
) No. 24-1060L
v. ) (Filed: August 3, 2026)
)
THE UNITED STATES OF AMERICA, )
)
Defendant. )
)
Thomas S. Stewart and Reed W. Ripley, Stewart, Wald & Smith LLC, Kansas City, MO, with
whom were Steven M. Wald and Michael Smith, St. Louis, MO, for Plaintiffs.
John K. Heise and Young Kang, Trial Attorneys, Natural Resources Section, Environment &
Natural Resources Division, U.S. Department of Justice, Washington, DC, with whom was
Adam Gustafson, Principal Deputy Assistant Attorney General, for Defendant.
OPINION AND ORDER
KAPLAN, Judge.
The plaintiffs in this action for compensation under the Fifth Amendment’s Takings
Clause are 137 landowners who collectively own 138 parcels of land adjacent to an 11.9-mile
railroad corridor in Snohomish County, Washington. On July 11, 2024, the Surface
Transportation Board (“STB”) issued a Certificate of Interim Trail Use (“CITU”) which, by
operation of the National Trails System Act, converted the rail corridor to a public recreational
trail. Fourth Am. Compl. ¶ 148, ECF No. 26 [hereinafter Am. Compl.]; 16 U.S.C. § 1247(d).
The plaintiffs allege that they own the parcels of land on which the railroad corridor was
built in fee simple and that the railroads held only easements to use the corridor for railroad
purposes. They argue that when the rail corridor was converted to use for a recreational trail,
ownership of the parcels of land should have reverted back to them. They claim that the issuance
of the CITU resulted in a Fifth Amendment taking of their reversionary interests, triggering their
entitlement to compensation under the reasoning of Preseault v. United States (Preseault II), 100
F.3d 1525 (Fed. Cir. 1996), and related cases.
The government, on the other hand, contends that under Washington state law the
original source deeds conveyed fee simple interests in the land to the railroads. As such, it
argues, the plaintiffs had no property interests to be taken when the CITU was issued. See
Pressly v. United States, 174 F.4th 1368, 1373 (Fed. Cir. 2026) (“If, however, the railroad
company holds fee simple title to the land over which the railroad operated, no taking can occur
because no third party holds underlying fee simple title that would otherwise become
unencumbered upon the railroad’s abandonment of operations.” (footnote omitted)).
The case is before the Court on the parties’ cross-motions for partial summary judgment
as to title and the government’s takings liability. For the reasons set forth below, the Court agrees
with the government that under state law the railroad deeds at issue in this case conveyed the
land underlying the rail corridor to the railroads in fee simple. Therefore, there was no taking
when the CITU issued, and the government is entitled to summary judgment as to those claims.
On the other hand, as to those claims based on federal land grants and adverse
possession, and for which there are no material facts in dispute, the plaintiffs are entitled to
judgment as a matter of law. Therefore, both the plaintiffs’ motion for summary judgment, Pls.’
Mot. Summ. J., ECF No. 37 [hereinafter Pls.’ Mot.], and the government’s motion for summary
judgment, Def.’s Cross-Mot. Summ. J., ECF No. 44 [hereinafter Def.’s Mot.], are
GRANTED-IN-PART and DENIED-IN-PART.
BACKGROUND
I. Statutory Background
A. The Transportation Act
The Transportation Act of 1920 conferred exclusive jurisdiction on the Interstate
Commerce Commission (“ICC”), now the STB, over the abandonment of railroads in the
nation’s interstate rail network. Pub. L. No. 66-152, § 402, 41 Stat. 456, 477–78 (codified as
amended at 49 U.S.C. § 10903). Rail carriers must file an application with the STB if they wish
to either abandon or discontinue a railroad line. 49 U.S.C. § 10903(a). Abandoning a rail line
removes it from the rail network, and the railroad no longer has an obligation to provide
transportation on that line. Id. § 10904(g); Preseault v. ICC (Preseault I), 494 U.S. 1, 5 n.3
(1990). Discontinuance allows a railroad to cease operating a line indefinitely while preserving
the rail corridor for reactivation of operations in the future. Preseault I, 494 U.S. at 5 n.3. The
STB may only approve a railroad’s application if it finds that “the present or future public
convenience and necessity require or permit the abandonment or discontinuance.” 49 U.S.C.
§ 10903(d).
B. The National Trails System Act
In 1983, Congress amended the National Trails System Act (“Trails Act”) to give the ICC
(and now the STB) the authority to “railbank” lines instead of abandoning or discontinuing them.
National Trails System Act Amendments of 1983, Pub. L. No. 98-11, Title II, 97 Stat. 42
(codified as amended at 16 U.S.C. §§ 1241–51); 16 U.S.C. § 1247(d); 49 C.F.R. § 1152.29.
Under the statute, qualified public or private agencies may comment on abandonment or
discontinuance applications to express interest in sponsoring a public trail in the rail corridor. 16
U.S.C. § 1247(d). If the railroad agrees to negotiate an interim trail use agreement with the
interested sponsor, the STB issues a CITU. 49 C.F.R. § 1152.29(c)(1). 1
1
If the railroad originally applied for an exemption of its rail carrier obligations under 49 U.S.C.
§ 10502, rather than full abandonment, the STB issues a Notice of Interim Trail Use or
2
The CITU allows the railroad to discontinue rail service and salvage material “consistent
with interim trail use” while preserving the corridor for potential reactivation of railroad service
in the future. Id. § 1152.29(c)(1)(i). The railroad and trail sponsor have one year from the date of
the CITU to execute an interim trail use agreement, subject to extensions. Id. § 1152.29(c)(1)(ii).
If no agreement is reached, the line may be abandoned. Id. § 1152.29(c)(1)(i).
II. The Railroads’ Acquisition of the Rail Corridor at Issue in this Case
In the late 1800s and early 1900s three separate railroad carriers acquired ownership
interests in the land on which the corridor at issue in this case was built. They were Seattle &
West Coast Railway (“Seattle & West Coast”), Seattle Lake Shore & Eastern Railway (“Seattle
Lake Shore”), and Northern Pacific Railway (“Northern Pacific”). See Def.’s Mot. at 4.
Most of the property that formed the rail corridor was conveyed to the railroads in deeds
executed by individual landowners. See Def.’s Exs. 3–29, ECF Nos. 44-3 to 44-29; Pls.’ Exs. F–
FF, ECF Nos. 37-16 to 37-42; see generally Am. Joint Stipulations of Fact, ECF No. 36-1
[hereinafter Joint Stipulations]. The railroads acquired the remaining parcels by adverse
possession or through federal land grants. See Joint Stipulations at 1–2, 11–12, 29, 31.
Seattle & West Coast secured ownership interests in the land first in 1887. Def.’s Exs. 3–
15. In 1888, Seattle & West Coast was acquired by Seattle Lake Shore, which began building the
Snohomish County segment of the rail corridor that year. Def.’s Ex. 30, at 5–6, ECF No. 44-30. 2
Seattle Lake Shore continued to purchase ownership interests in the land for the rail corridor
through 1893. Def.’s Exs. 16–22.
In 1896, Seattle Lake Shore entered foreclosure proceedings, and it eventually became
the Seattle division of Northern Pacific. Def.’s Ex. 30, at 6. Northern Pacific executed the
remaining deeds at issue in this case between 1903 and 1918. Def.’s Exs. 23–29.
In 1996, Northern Pacific became part of BNSF Railway Company as a result of a series
of mergers. Def.’s Ex. 30, at 6. In 2009, the Port of Seattle acquired the rail corridor, and GNP
RLY, Inc. (“GNP”) obtained a freight rail easement over it. Id. at 1. Soon afterward, Snohomish
County purchased the physical assets of the corridor from the Port of Seattle. Id.
III. The Issuance of the CITU in this Case
On October 17, 2023, after other portions of the rail corridor had been railbanked,
Snohomish County filed an application with the STB to abandon the portion of the corridor at
issue in this case. Def.’s Ex. 1, at 1–2, ECF No. 44-1. In its application, the County requested
Abandonment (“NITU”), which carries slightly different terms than a CITU. See 49 C.F.R.
§ 1152.29(d).
2
See also Dan Bolyard, The Seattle, Lake Shore & Eastern, Big Bend Railroad History (Nov. 20,
2017), http://www.bigbendrailroadhistory.com/2017/11/the-seattle-lake-shore-eastern.html
(quoting Louis Tuck Renz, The History of the Northern Pacific Railroad (1980)).
3
that the corridor be converted into an interim recreational trail, which it offered to sponsor. Id.
GNP, in turn, consented to negotiating an interim trail use agreement with the County. Id. at 4.
On July 11, 2024, the STB approved the County’s application and issued a CITU. Id. at
1. About six weeks later, on August 22, 2024, the County notified the STB that it had executed a
trail use agreement with GNP. Def.’s Ex. 31, at 1, ECF No. 44-31.
IV. This Lawsuit
The plaintiffs filed this action on July 12, 2024, the day after the STB issued the CITU.
Compl., ECF No. 1. The plaintiffs have since amended their complaint four times to make
corrections and add claimants. See ECF Nos. 4, 10, 15, 17, 24, 26.
In their fourth and final amended complaint, the plaintiffs allege that at the time the CITU
was issued, GNP owned an easement for railroad purposes through their properties. They further
allege that “but for operation of the Trails Act, the plaintiffs would have the exclusive right to
physical ownership, possession, and use of their property free of any easement for recreational
trail use or future railroad use.” Am. Compl. ¶ 149. They claim that, “[b]y operation of the Trails
Act, the United States took the Plaintiffs’ property, and it is Constitutionally obligated to pay just
compensation.” Id. ¶ 150.
On September 15, 2025, the plaintiffs filed their motion for partial summary judgment as
to liability and title. Pls.’ Mot., ECF No. 37. The government subsequently filed a cross-motion
for partial summary judgment and opposition to the plaintiffs’ motion. Def.’s Mot., ECF No. 44.
Neither party requested oral argument, and the Court has concluded that such argument is not
necessary.
DISCUSSION
I. Takings Clause Liability in Trails Act Cases
The Takings Clause of the Fifth Amendment provides that “private property may not be
taken for public use, without just compensation.” U.S. Const. amend. V. In Preseault II, the en
banc Federal Circuit articulated a three-part analytical framework for determining whether the
conversion of a railroad corridor to a public trail under the National Trails System Act
constituted a compensable taking under the Fifth Amendment. 100 F.3d at 1533.
Under that framework, the court first determines the nature of the railroad’s ownership
interests in the rail corridor at the time the CITU was issued. Specifically, it must determine
whether the railroad possessed “only easements” or if it obtained fee simple estates. Id. If the
court finds that the railroad owns the property in fee simple, there is no taking. Id. (“Clearly, if
the Railroad obtained fee simple title to the land over which it was to operate, and that title
inures, as it would, to its successors, the Preseaults today would have no right or interest in those
parcels and could have no claim related to those parcels for a taking.”).
On the other hand, where the court concludes that the railroad acquired only easements, it
must decide whether the terms of the easements limited the property to use for railroad purposes
or whether they included future use as public recreational trails. Id. If the court finds that the
4
railroad’s easements were broad enough to encompass recreational trails, it must determine
whether the easements terminated prior to the alleged taking so that the property owners at that
time held title in fee simple unencumbered by the easements. Id.
II. Summary Judgment Standard
Summary judgment is appropriate where “there is no genuine dispute as to any material
fact and the movant is entitled to judgment as a matter of law.” RCFC 56(a). It is the moving
party’s burden to demonstrate that there are no genuine disputes with respect to the material
facts. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). Therefore, “the inferences to be drawn
from the underlying facts . . . must be viewed in the light most favorable to the party opposing
the motion.” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986)
(alteration in original) (quoting United States v. Diebold, Inc., 369 U.S. 654, 655 (1962)).
“Where the record taken as a whole could not lead a rational trier of fact to find for the
non-moving party, there is no ‘genuine issue for trial.’” Id. (quoting First Nat’l Bank of Ariz. v.
Cities Serv. Co., 391 U.S. 253, 288 (1968)).
In this case, the parties have stipulated to the material facts with respect to the claims of
the vast majority of the plaintiffs. See Joint Stipulations. 3 Specifically, the parties agreed that
these plaintiffs owned their properties on July 11, 2024 (the date the STB issued its CITU) and
that the properties are adjacent to the railroad corridor at issue. Id. They have also agreed
regarding which original railroad source conveyance applies to the applicable stretch of railroad
corridor adjacent to each plaintiff’s properties. Id. In addition, the parties agree that the interests
the railroads acquired through the land grants and by adverse possession were easements limited
to railroad purposes and did not contemplate use of the land for public trails. See Def.’s Mot. at 1
n.1.
The parties’ primary disagreements are centered on the nature of the property interests
the original source deeds conferred on the railroad carriers. The government contends that the
deeds conveyed fee simple interests to the railroads. The plaintiffs allege that the railroads
received only easements to use the property for railroad purposes.
The existence and nature of the property interests at stake in a Fifth Amendment takings
case are determined by applying state law. Rogers v. United States, 814 F.3d 1299, 1305 (Fed.
Cir. 2015) (citing Preseault II, 100 F.3d at 1543); see also Pressly, 174 F.4th at 1374 (“The
acquisition of property rights is governed by the law of the state in which the property sits.”).
When interpreting state law, this Court is bound to follow the precedent of the state’s highest
court, which in this case is the Washington Supreme Court. See MicroStrategy, Inc. v. Bus.
Objects, S.A., 429 F.3d 1344, 1359 (Fed. Cir. 2005) (citing Derungs v. Wal-Mart Stores, Inc.,
3
There remain facts in dispute regarding the claims of ten plaintiffs who collectively assert
ownership of sixteen parcels (hereinafter the “Disputed Claims”). The majority of the factual
disputes concern whether the parcels at issue are adjacent to the rail corridor. Others concern, for
example, whether the claimant actually owned the land at issue on the date the CITU was issued.
See Joint Stipulations. In light of this Court’s conclusion that the plaintiffs with Disputed Claims
lacked a property interest in the parcels that are the subject of the Disputed Claims, the factual
disputes identified in the Joint Stipulation are immaterial and need not be resolved.
5
374 F.3d 428, 433 (6th Cir. 2004)). Lower state court decisions should be given “careful
attention,” but they are not binding on this Court. Id. (first citing Litton Indus. Prods., Inc. v.
Solid State Sys., Corp., 755 F.2d 158, 165 (Fed. Cir. 1985); and then citing In re Byrd, 357 F.3d
433, 438 (4th Cir. 2004)).
For the reasons set forth below, the Court finds that, under Washington state law, the
railroads owned the parcels of land that were conveyed by deed in fee simple. Therefore, the
government is entitled to judgment with respect to its takings liability as to those parcels.
III. The Interpretation of Railroad Deeds Under the Law of the State of Washington:
Brown v. State
Under Washington state law governing the interpretation of deeds, “the intent of the
parties is of paramount importance.” Brown v. State, 924 P.2d 908, 911 (Wash. 1996).
Determining that intent is a mixed question of law and fact. Roeder Co. v. Burlington N., 716
P.2d 855, 859 (Wash. 1986). The “legal rules of deed interpretation,” in other words, “determine
how the underlying facts reflect the intent of the parties.” King Cnty. v. Rasmussen, 299 F.3d
1077, 1084 (9th Cir. 2002).
In its seminal 1996 decision in Brown v. State, the Washington Supreme Court
commented on the “considerable disarray” among its decisions in the twentieth century regarding
whether a railroad deed conveyed a fee simple interest or only an easement. 924 P.2d at 911; see
also Kershaw Sunnyside Ranches v. Yakima Interurban Lines Ass’n, 126 P.3d 16, 22 (Wash.
2006) (“Throughout the 20th century, railroad deeds posed a recurring problem for courts,
prompting our court to opine that ‘[t]he authorities are in hopeless conflict’ and, in large part,
‘cannot be reconciled.’” (alteration in original) (quoting Swan v. O’Leary, 225 P.2d 199 (Wash.
1950)). In Brown, the court endeavored to address the “disarray” by surveying its past precedent,
resolving apparent conflicts, and identifying relevant factors to be considered when ascertaining
the parties’ intent.
The Brown court began by emphasizing the critical importance of determining and
enforcing the parties’ intent when construing a deed. See 924 P.2d at 911–12. In addition, it
established a general rule regarding deeds that were in the “statutory form.” Id. at 912. 4
4
Washington state law prescribes specific language for use in certain deeds. For example, it
provides that “warranty deeds” will contain the following language:
The grantor (here insert the name or names and place of residence,) for and in
consideration of (here insert consideration), in hand paid, convey and warrant to
(here insert the grantee’s name or names), the following described real estate (here
insert description), situated in the county of . . ., [state of Washington]. Dated
this . . . day of . . . , [year] . . . .
1886 Wash. Sess. Laws 177–78, § 3 (codified at Wash. Rev. Code § 64.04.030). The state statute
further provides that every deed that is “in substance” in this statutory form “shall be deemed and
held a conveyance in fee simple to the grantee.” Id. at 178, § 3; see also id. § 4 (codified at Wash.
6
Specifically, it held that “where the original parties utilized the statutory warranty form deed and
the granting clauses convey definite strips of land,” the court “must find that the grantors
intended to convey fee simple title unless additional language in the deeds clearly and expressly
limits or qualifies the interest conveyed.” Id. (first citing King Cnty v. Hanson Inv. Co., 208 P.2d
113 (Wash. 1949); and then citing Wright v. Olsen, 257 P.2d 782 (Wash. 1953)).
The Brown court identified a number of factors relevant to determining whether the
language of the deed “clearly and expressly limit[ed] or qualif[ied] the interest conveyed,” and
therefore indicated an intent to convey something less than a fee simple estate. Those are:
(1) whether the deed conveyed a strip of land, and did not contain additional
language relating to the use or purpose to which the land was to be put, or in other
ways limiting the estate conveyed; (2) whether the deed conveyed a strip of land
and limited its use to a specific purpose; (3) whether the deed conveyed a right of
way over a tract of land, rather than a strip thereof; (4) whether the deed granted
only the privilege of constructing, operating, or maintaining a railroad over the
land; (5) whether the deed contained a clause providing that if the railroad ceased
to operate, the land conveyed would revert to the grantor; (6) whether the
consideration expressed was substantial or nominal; and (7) whether the
conveyance did or did not contain a habendum clause, and many other
considerations suggested by the language of the particular deed.
Id. at 912 (citing Swan, 225 P.2d at 200). In addition to these factors, the Brown court stated, the
court should consider “the circumstances surrounding the deed’s execution and the subsequent
conduct of the parties.” Id. (citing Scott v. Wallitner, 299 P.2d 204 (Wash. 1956)).
The court in Brown observed that in past decisions it had “given special significance to
the words ‘right of way’ in railroad deeds.” Id. (citing Roeder, 716 P.2d at 855). In Roeder, for
example, one of the deeds provided that the grantor “conveys and warrants unto Bellingham and
Northern Railway Company . . . for all railroad and other right of way purposes, certain tracts
and parcels of land . . . .” Roeder, 716 P.2d at 857 (alterations in original). In that case, the
Brown court explained, it found the deed granted an easement “based on the specifically
declared purpose that the grant was a right of way for railroad purposes, and [the fact that] there
was no persuasive evidence of intent to the contrary.” Brown, 924 P.2d at 912 (citing Roeder,
716 P.2d at 857–58). The result in Roeder, the Brown court further explained, was consistent
with the decisions in the majority of cases involving the interpretation of railroad deeds, which
held that “the use of the term ‘right of way’ as a limitation or to specify the purpose of the grant
generally creates only an easement” and that “[c]onversely, where there is no language in the
deed relating to the purpose of the grant or limiting the estate conveyed, and it conveys a definite
strip of land, the deed will be construed to convey fee simple title.” Id. at 913 (collecting cases).
The deeds before the court in Brown conveyed strips of land and were in the statutory
warranty form. Id. The court observed that there was no question that the railroad had acquired
Rev. Code § 64.04.040) (providing a form for “bargain and sale deeds” and stating that every
deed that is “in substance” in that form conveys an estate in fee simple).
7
the property for railroad purposes. Id. It stressed, however, that “[i]dentifying the purpose of the
conveyance . . . [did] not resolve the issue at hand because a railroad can own rights of way in
fee simple or as easements.” Id.
The court concluded that construing the deeds before it to convey fee simple title rather
than easements “more accurately reflects the intent of the parties, given the form of the deeds
and the fact they convey[ed] ‘fee simple title’ to definite strips of land given without any
limitation or qualification.” Id. at 915. “In the absence of language in the deeds expressly and
clearly limiting the estate conveyed,” the court explained, “the deeds fall squarely within the rule
that where there is no language in a deed relating to the purpose of the grant or limiting the estate
conveyed, and it conveys a definite strip of land, it will be construed to convey fee simple title.”
Id.
The Washington Supreme Court has since indicated that it considers Brown to have resolved
previous conflicts in the law governing the interpretation of railroad deeds. See Kershaw, 126
P.3d at 21, n.5 (observing that “[t]he analytical approach espoused in Brown, while often fact
determinative, has largely reconciled the conflicting presumptions and case law”). Indeed, in
2005, the state supreme court declined a request by a judge on the Court of Federal Claims that it
provide an opinion regarding, among other things, how the phrase “right of way” should be
interpreted in railroad deeds in light of Brown. See Schroeder v. United States, 66 Fed. Cl. 508,
510 (2005) (requesting certification); Beres v. United States, 92 Fed. Cl. 737, 746 (2010)
(explaining that the court’s request for certification of legal questions had been denied). Citing
Brown and Ray v. King County, 86 P.3d 183 (Wash. Ct. App. 2004), as discussed below, the
Washington Supreme Court explained that it was denying the certification request because, in its
view, “the questions posed by the federal court are not ‘question[s] of state law . . . which [have]
not been clearly determined.’” Certification from the United States Court of Federal Claims in
Clifford F. Schroeder, et al. v. United States, No. 77619-9 (Wash. Oct. 7, 2005) (alterations in
original) (quoting Wash. Rules of App. Proc. 16.16(a)).
IV. Application of the Brown Framework to the Deeds in this Case
A. The Northern Pacific Deeds
There are six source deeds that conveyed interests in the rail corridor to Northern Pacific.
They are: the Eby Deed, the Ford Deed, the Henry Deed found at Bk. 25 p. 512 (“Henry Deed
1”), the Henry Deed found at Bk. 110 p. 509 (“Henry Deed 2”), the Shadinger Deed found at Bk.
80 p. 296 (“1903 Shadinger Deed”), and the Shadinger Deed found at Bk. 109 p. 28 (“1907
Shadinger Deed”). 5
5
See Eby Deed (Pls.’ Ex. Y, ECF No. 37-35; Def.’s Ex. 29, ECF No. 44-29), the Ford Deed
(Pls.’ Ex. Z, ECF No. 37-36; Def.’s Ex. 24, ECF No. 44-24), Henry Deed 1 (Pls.’ Ex. AA, ECF
No. 37-37; Def.’s Ex. 27, ECF No. 44-27), the Henry Deed 2 (Pls’ Ex. BB, ECF No. 37-38;
Def.’s Ex. 28, ECF No. 44-28), the 1903 Shadinger Deed (Pls.’ Ex. CC, ECF No. 37-39; Def.’s
Ex. 26, ECF No. 44-25), and the 1907 Shadinger Deed (Pls.’ Ex. R, ECF No. 37-28; Def.’s Ex.
25, ECF No. 44-26).
8
For the reasons set forth below, the Court finds that the Northern Pacific deeds conveyed
fee simple interests to the railroad. Therefore, the government is entitled to judgment as matter of
law with respect to the takings claims of those plaintiffs who assert property interests based on
the Northern Pacific deeds.
1. The “Settlement Deeds”
The plaintiffs refer to the Eby Deed, the Ford Deed, the Henry Deed 1, the Henry Deed 2,
and the 1903 Shadinger Deed as the “Settlement Deeds” because each contains language
releasing the railroad from liability for any claims by the grantor based on damages caused by
the railroad. Pls.’ Mot. at 29. The plaintiffs use the Eby Deed as an exemplar for these so-called
“settlement deeds.” Id. 6 It states as follows:
The Grantor, John S. Eby, a widower, of Snohomish, Washington for and in
consideration of seven hundred twenty-five dollars ($725.00) in hand paid, conveys
and warrants to the Northern Pacific Railway Company, a Wisconsin corporation
the following described real estate:
That portion of the property of the grantor []being the north nine hundred forty-five
and five tenths (945.5) feet, more or less of the south eleven hundred forty-three
and five tenths (1143.5) feet of the north half of the southwest quarter (N ½ of SW
¼ ) of section thirty-one (31) in township twenty-eight (28) North of range six (6)
east of the Willamette Meridian, west of the present right of way of said Railway
company lying between lines parallel with and distant respectively one hundred
(100) and one hundred fifty (150) feet westerly from the center line of the present
main track of said railway company, as the same is now constructed and operated
over and across said section; also that portion of said N ½ of SW ¼ lying between
lines parallel with and distant respectively one hundred fifty (150) and two hundred
(200) feet westerly from said above named main track center line and between a
line parallel with and distant one hundred ninety-eight (198) feet northerly from the
south line of said government subdivision and a line drawn at right angles to said
main track center line at a point distant twenty-one hundred thirty four and eight
tenths (2134.8) feet northerly from its point of intersection with the south line of
said section 31, containing in all two (2) acres, more or less, situated in the County
of Snohomish and State of Washington said consideration also being in full
settlement of all claims and demands for damage sustained by reason of the
location, construction maintenance and operation of said railroad on, over and
across said described land.
Pls.’ Ex. Y; Def.’s Ex. 29.
6
As noted, the plaintiffs treat the Eby deed as an appropriate exemplar for all of the Settlement
Deeds. However, unlike the Eby and other Settlement Deeds, the Henry Deed 1 does not follow
the statutory form. See Pls.’ Ex. AA; Def.’s Ex. 27. Therefore, the Court separately examines the
Henry Deed 1 below.
9
The Eby Deed, as well as the Ford Deed, the Henry Deed 2, and the 1903 Shadinger
Deed, closely track the statutory warranty form. See supra note 4. Under Brown, therefore,
absent language that “clearly and expressly limit[ed] or qualifie[d] the interest conveyed” the
Court must find that the grantors intended to convey fee simple interests to Northern Pacific. 924
P.2d at 912.
The Court finds that there is no language in these deeds that limited or qualified the
interest conveyed to Northern Pacific, much less language that did so either “clearly” or
“expressly.” The deeds conveyed the strips of land they identified and did not include language
“relating to the use or purpose to which the land was to be put, or in other ways limiting the
estate conveyed.” Id. The deeds did not include reverter clauses. And there are no indications in
other language within the deeds to suggest that the intent was to convey easements only to the
railroads.
In that regard, the Court is not persuaded by the plaintiffs’ argument that—under the
Washington Court of Appeals’ decision in Hanson Industries, Inc. v. County of Spokane, 58 P.3d
910 (Wash. Ct. App. 2002)—the liability release provisions in the Northern Pacific deeds
establish that the property interests being conveyed are easements. Pls.’ Mot. at 29–30. In
Hanson, the liability release provision in the railroad deed was only one factor among many that
led the court to conclude that it conveyed an easement. See 58 P.3d at 916–18. Moreover, the
deeds in Hanson, unlike the Eby Deed, the Ford Deed, the Henry Deed 2, and the 1903
Shadinger Deed were not in the statutory warranty form and therefore were not presumed to have
conveyed fee simple estates. Id. at 916. Hanson does not purport to find, as Brown requires, that
the liability release provision alone supplies a clear and express limitation or qualification of the
interest conveyed in the deeds at issue there.
For these reasons, the plaintiffs’ reliance on Hanson is misplaced. The Eby Deed, the
Ford Deed, the Henry Deed 1, and the 1903 Shadinger Deed conveyed fee simple interests to the
railroad. Therefore, the plaintiffs have no takings claims with respect to the parcels of land
conveyed in those deeds.
2. 1907 Shadinger Deed
The language of the 1907 Shadinger Deed is considered separately from the other
Northern Pacific deeds, because, unlike those deeds, the 1907 Shadinger deed includes the term
“right of way” in the description of the property being conveyed. Pls.’ Ex. R; Def.’s Ex. 26. It
states as follows:
The Grantors, John H. Shadinger and Hattie E. Shadinger, his wife, for and in
consideration of the sum of One ($1.00) Dollar to them in hand paid, convey and
warrant to the Northern Pacific Railroad Company, a corporation, the following
described real estate to wit:
A certain triangular tract of land, being that portion of Lot Four (4) Section Eighteen
(18) Township Twenty eight (28) N.R. Six (6) east of W.M. bounded on the north
westerly side by the east boundary line of the right of way of the Northern Pacific
Railway, and on the northeasterly side by the south boundary line of the right of
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way of the St. Paul, Minneapolis [and] Manitoba Railway and on the south side by
the section line between sections 18 and 19 in Township 28 N.R. 6 E.W.M.
containing one acre more or less. Subject right of way heretofore deeded Feb.
26-1906 Filed March 19, 1906 Recorded in Vol. 94 of Deeds page 47, to the Seattle
Tacoma Power Company.
Also a right of way two rods wide beginning at a point on the west boundary line
of the right of way of the Northern Pacific Railway where the same is intersected
by the south boundary line of the right of way of the St. Paul Minneapolis [and]
Manitoba Railway through Lot Four (4) Section Eighteen (18) Township 28, N.R.6
E.W.M. and running parallel with and adjacent to said right of way through said
tract in a westerly direction to the township line between township Twenty eight
(28) N.R. 5 E.W.M. and township Twenty-eight (28) N.R. 6 E.W.M., all of the
above described real estate being located in the County of Snohomish, State of
Washington.
Pls.’ Ex. R (emphasis added); Def.’s Ex. 26 (emphasis added).
The language of the 1907 Shadinger Deed follows the statutory form for warranty deeds.
See supra note 4. Therefore, under Washington law, the Court presumes that the parties intended
that a fee simple interest be conveyed. Kershaw, 126 P.3d at 24. The Court finds, moreover, that
there is no language in the deed that “clearly and expressly limits or qualifies the interest
conveyed.” Brown, 924 P.2d at 912. The reference to a “right of way two rods wide” in the
descriptive clause is not enough to establish the grantor’s intent to convey an easement. Pls.’ Ex.
R; Def.’s Ex. 26. The reference is not in the granting clause and was not used to define the
purpose of the grant. Cf. Kershaw, 126 P.3d at 23 (holding that language presumptively created
an easement where it granted the railroad a strip of land “to be used . . . as a right of way for a
railway forever, together with the perpetual right to construct, maintain and operate a railway or
railways over and across the same” (emphasis added)). And as Brown held, where, as here,
“there is no language in [the] deed relating to the purpose of the grant or limiting the estate
conveyed, and it conveys a definite strip of land, [the deed] will be construed to convey fee
simple title.” 924 P.2d at 915; see also id. (“While the manifest purpose of the deeds is to convey
land for railroad lines, railroads have never been prohibited from holding rights of way in fee
simple.” (citing Morsbach v. Thurston Cnty., 278 P. 686, 690 (Wash. 1929))).
The Court recognizes that the amount of consideration the railroad provided in exchange
for the conveyance, one dollar, appears to be a nominal sum. Under Brown that factor makes it
more likely that an easement is being conveyed. But as the Ninth Circuit observed in King
County v. Rasmussen, “[t]he Washington courts in recent years have not given much weight to
the amount of consideration in determining the intent of the parties.” 299 F.3d at 1084 n.8. This
is particularly so where, as here, “the record does not establish the consideration typically paid
for easements as opposed to fee simple estates.” Id. (observing also that “the lack of monetary
consideration here reveals little about the [grantors’] intent” because “[b]oth an easement and a
fee simple would have had monetary value, but the [grantors] declined to require any payment”).
The Court finds, therefore, that the apparently nominal amount of consideration reflected
in the deed is not enough to overcome the presumption of a fee simple conveyance given to
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warranty form deeds. The plaintiffs therefore have no takings claims with respect to the parcels
of land conveyed in the 1907 Shadinger Deed.
3. Henry Deed 1
Both the plaintiffs and the government grouped the Henry Deed 1 together for
consideration with the other deeds conveying property to Northern Pacific. See Pls.’ Mot. at 28
n.35; Def.’s Mot. at 13. But unlike the other deeds, the Henry Deed 1 is not in statutory form. It
states as follows:
It Is Hereby Mutually Agreed by and between Robert Henry, plaintiff above named,
and the Northern Pacific Railway Co., the defendant above named, that the
defendant will pay to the plaintiff, Robert Henry, the sum of eight hundred dollars
in full settlement of all damages claimed by the plaintiff in his complaint in the
above entitled action.
It is further agreed that in consideration of said payment the said plaintiff shall deed
to said defendant, Northern Pacific Railway Co., a strip of land thirty feet in width
running parallel with the right of way of defendant’s railway, and along the East
side of plaintiff’s land in Section 18, Twp 28 N R 6 East W.M., as described in said
complaint, free from all incumbrances and taxes which may have accrued.
It is further agreed and stipulated herein that said payment of eight hundred dollars
be made within sixty days from this date and it is further agreed and stipulated
herein that the above entitled action be continued for sixty days from date and that
upon the payment of said $800 to the plaintiff that said action be dismissed without
costs to either party.
It is further agreed that said consideration of eight hundred dollars shall be in full
of all claims of plaintiff against defendant for damages to date, and the said
Northern Pacific Ry Co., upon payment of said amount of $800, shall be fully
released and discharged from all liability for loss or damage against the defendant,
either by reason of the claim of the plaintiff in his complaint or otherwise.
Pls.’ Ex. AA; Def.’s Ex. 27.
Because the Henry Deed 1 is not in the statutory warranty form it is not subject to the
presumption that it conveys a fee simple estate as are the five other Northern Pacific deeds.
Nonetheless, in the Court’s view, the Brown factors support finding a conveyance of fee simple
title for the Henry Deed 1. Application of factors one, two, and four are consistent with a fee
simple conveyance because the deed contains no language relating to the purpose of the grant or
limiting the use of the land. Factor three favors the conveyance of a fee simple because the deed
references “a strip of land” in the granting clause, not a right of way. Factors five and seven
favor fee simple because there is no clause pr