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Expert Analysis

Calif. Land Grant Case May Change Railroad Rights Of Way

Law360, New York ( January 23, 2015, 10:51 AM EST) -- A California appellate court has held that a railroad cannot charge rent to a petroleum pipeline on rights of way where the title claimed by the railroad is derived from 19th-century land grants by Congress, which were intended to encourage the building of transcontinental railroads. The decision in Union Pacific Railroad Co. v. Santa Fe Pacific Pipelines Inc. , 231 Cal. App. 4th 134, 180 Cal. Rptr. 3d 173 (2014) (petition for Cal. Supreme Court review denied Jan. 21, 2015), has potentially far-reaching implications for both railroads and their tenants in the West. . . .

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