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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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