Property owners sue federal government over railway corridor compensation
Published 1:39 pm Friday, January 24, 2025
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Town of Tryon, local landowners among plaintiffs
FOOTHILLS—Roughly 150 plaintiffs have recently filed a lawsuit against the federal government asking for compensation for property taken along the historic rail corridor for the proposed Saluda Grade Trail. The law firm Lewis Rice, headquartered in St. Louis, is representing the plaintiffs in the suit.
The 31.5-mile stretch of railroad between Inman, S.C., and Zirconia, N.C., was once a bustling route, but the railroad ceased operations in 2001 and has remained unused for over two decades.
In August 2023, a trio of nonprofit organizations, Conserving Carolina, Upstate Forever, and PAL, announced plans to purchase the Saluda Grade from Norfolk Southern to transform the abandoned line into the Saluda Grade Trail. The organizations went on to form the Saluda Grade Trails Conservancy, which is now under contract to purchase the rail line. The situation escalated when the federal government authorized the abandonment of the railway by Norfolk Southern late last year, which led to the affected property owners filing suit.
Lewis Rice argues that the sale triggered the Takings Clause of the U.S. Constitution’s 5th Amendment. Lindsay Brinton, a lawyer with the firm, explained in a statement that the federal government’s approval for this conversion violated landowners’ rights, preempting a state law that grants property owners the right to seek compensation when their property is taken for public use.
Brinton emphasized that the affected landowners are entitled to clear their properties of any easements from the railroad, as the federal government’s actions allowed Norfolk Southern to sell their right-of-way for non-railroad purposes. The claimants range from individuals to entire municipalities, including the Town of Tryon. Tryon Town Manager Jim Fatland advocated for Tryon to join the lawsuit after Helene caused substantial damage to the town’s infrastructure. The town owns four properties along the rail line.
Fatland highlighted the benefit of the trail, as well as the benefit of the lawsuit for the town.
“If we get some compensation off of it, it’s money that’s going to come into the town coffers,” Fatland said. “It will be reinvested for things that will benefit Tryon, such as funding for public restrooms and other amenities for residents and visitors alike.”
Fatland reiterated that the Town of Tryon supports the Saluda Grade Trail, but joining the suit is necessary to be compensated.
“If you don’t file a lawsuit, the federal government doesn’t have to pay the property owners,” he said.
Not all property owners along the corridor favor the new trail project. Some have expressed concerns about the impact of the trail, including concerns about safety, cleanliness, and potential disturbances that could arise from increased foot traffic.
The goal of the Saluda Grade Trail Conservancy is to create a pedestrian-friendly pathway, preserving the natural landscape while encouraging outdoor activity. Kieran Roe, executive director of Conserving Carolina, emphasized the lawsuit has no effect on their work.
“We dealt with something similar working on the Ecusta Trail,” said Roe. “Lawsuits like this are standard procedure when dealing with a railbanking project. It has no effect on our work, and we are not part of the legal process.
“We’re excited to be moving forward on the acquisition from Norfolk Southern. We want to see justice for the property owners play out, and we’re glad some involved in the lawsuit support the project.”
As the legal proceedings unfold, the outcome could shape not only the Saluda Grade’s future but also landowners’ expectations and rights along the corridor.