Ladd v. United States

In 1903 the railroad acquired a right-of-way for a 100-foot wide, 76-mile long, strip across Arizona land near the Mexican border. After operating for about 100 years, the railroad initiated proceedings to abandon the railway with the Department of Transportation’s Surface Transportation Board, which issued a Notice of Interim Trail or Abandonment (NITU) in 2006 authorizing conversion to a public trail under the National Trails System Act Amendments of 1983, 16 U.S.C. 1247(d). The landowners sued, alleging that issuance of the NITU constituted a compensable taking. The claims court dismissed, reasoning that the government had not physically invaded the property. The Federal Circuit reversed and held that the takings claim accrued when the 2006 NITU issued. During discovery on remand, the government produced a NITU affecting the property that had issued in 1998. There was no indication that the NITU was published; the landowners submitted declarations that they were not aware of the 1998 NITU. The claims court held that the limitations period began in 1998 and that the claims were time-barred. The Federal Circuit reversed. In these circumstances, the government’s interest in bright-line legal rules must yield to the landowners’ right to receive actual or constructive notice that their claims have accrued.

Ladd v. United States