Opinion ID: 1254037
Heading Depth: 1
Heading Rank: 1

Heading: Condemned land. We will first consider the Burrell condemned strip.

Text: A. Case law is clear that condemnation of land for railroad right of way creates an easement, and once the easement is abandoned the land reverts to the then owner of the servient estate, subject to statutory provisions. Chadek v. Alberhasky, 253 Iowa 32, 111 N.W.2d 297 (1961); Vandewater v. Chicago, R.I. & P. Ry., 170 Iowa 687, 153 N.W. 190 (1915); Hastings v. B. & M. R.R., 38 Iowa 316 (1874). Since the adoption of the Iowa Code of 1873, an Iowa statute has provided in one form or another as follows: If a railway, or any part thereof, shall not be used or operated for a period of eight years, or if, its construction having been commenced, work on the same has ceased and has not been in good faith resumed for eight years, the right of way, including the roadbed, shall revert to the persons who, at the time of the reversion, are owners of the tract from which such right of way was taken. Iowa Code § 473.2 (1975). This statute governs railroad rights of way acquired by condemnation, since they constitute easements for right of way. When the condemned strip has not been used or operated as a railway for eight years, it reverts to the then owners of the land out of which it was taken. Turner v. Unknown Claimants, 207 N.W.2d 544, 545 (Iowa 1973); see also SMB Investments v. Iowa-Illinois Gas & Electric Co., 329 N.W.2d 635, 637 (Iowa 1983). B. Defendants contend that a federal act, the Railroad Revitalization and Regulatory Reform Act of 1976 (the 4-R Act), preempts Iowa section 473.2. Section 10906 of the 4-R Act requires ICC to make a dual determination. It must determine whether abandonment is proper and, if so, whether the railroad's property is suitable for other public use. If the property is so usable, ICC may order the property to be sold, leased, exchanged, or otherwise disposed of on conditions directed by ICC, including a prohibition on other disposal by the railroad for a period of not more than 180 days.... Defendants contend that by virtue of section 10906 ICC can determine the railroad right of way may be sold to a public agency and can thus preserve the easement free of section 473.2. This contention involves interpretation of section 10906 and also constitutional implications. As to interpretation, section 10906 unquestionably permits a sale of the strip by the railroad. Such easements are commercial in nature and are thus alienable. 5 Restatement, Property § 491, Comment b (1936). While this is true, the interest of the railroad was acquired when the predecessor to section 473.2 of the Iowa Code was in effect, and is measured by that statute. At all times the railroad's interest has been subject to reversion upon nonuse for railroad purposes for a specified period of time. We are unable to find anything in section 10906 of the 4-R Act which purports to transform that interest of the railroad into a greater interest or to permit the railroad, by alienation, to elevate that interest to an easement free of the Iowa abandonment statute. We think section 10906 simply means that ICC can prohibit the railroad for 180 days from disposing for private uses whatever interest the railroad has in the right of way under the property law of the state where the land lies. The United States Supreme Court stated in Hayfield N.R.R. v. Chicago & N.W. Transportation Co., 467 U.S. ___, 104 S.Ct. 2610, 81 L.Ed.2d 527 (1984), [N]othing in the [4-R Act] expressly refers to federal preemption with respect to the disposition of abandoned rail property. Id. 467 U.S. at ___, 104 S.Ct. at 2617, 81 L.Ed.2d at 536. We hold that the 4-R Act does not preempt Iowa title law. As to constitutional implications, when the right of way was condemned across the Burrell farm the interest the railroad obtained was subject to reversion under the predecessor to section 473.2, and the Burrells received compensation on that basis. The owners of the farm have never been compensated for an easement for purposes other than railroad uses, subject to reversion on nonuse for railroad purposes. While we do not decide the constitutional problem that defendants' contention raises because of our conclusion on interpretation, we note that a real question exists. See Ruckelshaus v. Monsanto Co., 467 U.S. ___, 104 S.Ct. 2862, 81 L.Ed.2d 815 (1984); Webb's Fabulous Pharmacies, Inc. v. Beckwith, 449 U.S. 155, 101 S.Ct. 446, 66 L.Ed.2d 358 (1980). We hold specifically that section 10906 does not preempt section 473.2 of the Iowa Code. C. Defendants also contend that the easement was not abandoned; it merely changed from an easement for railroad purposes, a form of public transportation, to other forms of public transportation such as hiking and biking. They rely on State v. Washington Wildlife Preservation, Inc. v. State, 329 N.W.2d 543 (Minn. 1983), cert. denied, ___ U.S. ____, 103 S.Ct. 3540, 77 L.Ed.2d 1390 (1983). The court was there concerned with fourteen deeds executed in 1884 and 1885. The court sought to determine the nature of the interest conveyed, and concluded that if an easement was conveyed it was not merely for railroad purposes. The court stated: Use of the right-of-way as a recreational trail is consistent with the purpose for which the easement was originally acquired, public travel, and it imposes no additional burden on the servient estates. Id. at 545. Additionally, the court held that the easement was not abandoned since merely a change of transportation mode was involved: It has long been held that the holder of an easement is not limited to the particular method of use in vogue when the easement was acquired, and that other methods of use in aid of the general purpose for which the easement was acquired are permissible. Id. at 546. Washington Wildlife differs substantially from the case at bar. In this case the easement was for railroad purposes. It was created by condemnation, a statutory creature, and not by deed, which is in essence a contract. Being a creature of statute, the interest created is controlled by statute, including section 2015 of the Code of 1897, now section 473.2 of the 1975 Code, relating to reversion for nonuser for railroad purposes. In contrast, the Minnesota Supreme Court specifically stated that none of the deeds were limited to railroad uses: Significantly, however, none of the deeds expressly limit the easement to railroad purposes, provide that the interest conveyed terminates if use for railroad purposes ceases, or provide that the easement would exist only for so long as the right-of-way was used for railroad purposes. While the grantors were undoubtedly aware that a railroad would be constructed on the land, none of the deeds limit the use to railroad purposes. Id. at 546. We hold that Washington Wildfile is not applicable here. See Chadek v. Alberhasky, 253 Iowa 32, 111 N.W.2d 297 (1961); Schnabel v. County of DuPage, 101 Ill.App. 553, 428 N.E.2d 671 (1981); Pollnow v. State Dep't of Natural Resources, 88 Wis.2d 350, 276 N.W.2d 738 (1979). D. Defendants also contend that the Iowa Stale Uses and Reversions Act terminated the reversion. Iowa Code § 614.24 (1975). No verified claim was filed under that act. Section 614.24 provides: No action based upon any claim arising or existing by reason of the provisions of any deed or conveyance or contract or will reserving or providing for any reversion, reverted interests or use restrictions in and to the land therein described shall be maintained either at law or in equity in any court to recover real estate in this state or to recover or establish any interest therein or claim thereto, legal or equitable, against the holder of the record title to such real estate in possession after twenty-one years from the recording of such deed of conveyance or contract or after twenty-one years from the admission of said will to probate unless the claimant shall, by himself, or by his attorney or agent, or if he is a minor or under legal disability, by his guardian, trustee, or either parent or next friend, shall file a verified claim with the recorder of the county wherein said real estate is located within said twenty-one year period. In the event said deed was recorded or will was admitted to probate more than twenty years prior to July 4, 1965, then said claim may be filed on or before one year after July 4, 1965. Such claims shall set forth the nature thereof, also the time and manner in which such interest was acquired. For the purposes of this section, the claimant shall be any person or persons claiming any interest in and to said land or in and to such reversion, reverter interest or use restriction, whether the same is a present interest or an interest which would come into existence if the happening or contingency provided in said deed or will were to happen at once. Said claimant further shall include any member of a class of persons entitled to or claiming such rights or interests. (Emphasis added.) We observe that the statute only addresses claims arising from a deed, conveyance, contract, or will, whereas the McKinley's claim arises pursuant to statute. Moreover, the reversion for nonuser provided by section 473.2 of the Code does not involve the policy of the stale uses and reversions act. A railroad right of way is open and obvious. The reverter statute in section 473.2 has also been open and obvious since 1873. Section 473.2 itself charges all persons with notice that an unused railroad right of way may be subject to reversion after eight years. That section of the Iowa Code is entirely different from a reverter clause tucked away in a deed, conveyance, contract, or will. We hold that section 614.24 does not apply to reverters under section 473.2. We note that section 614.24 was amended in the Code of 1981. The abandonment here took place no later than December 31, 1979, whereas the amendment to section 614.24 became effective July 1, 1980. Similarly, section 473.2 was amended and moved to section 327G.77 in the Code of 1981. The abandonment occurred before this change also was made. These amendments do not apply here. Legislative enactments, including these, normally operate prospectively. City of Monticello v. Adams, 200 N.W.2d 522 (Iowa 1971); see Byker v. Rice, 360 N.W.2d 572 (Iowa Ct. App.1984). Moreover, we hold that subsequent amendments do not alter our interpretation of sections 614.24 and 473.2 before the changes were made. As a result of these conclusions, the condemned strip will go to the persons who are the owners of the Burrell farm on January 1, 1988, unless the use of the strip for railroad purposes resumes before then. In the meantime the Linn County Conservation Board has the use and possession of the strip; the railroad could convey the remainder of its eight years to the extent that no greater burden is placed on the servient estate. Chadek v. Alberhasky, 253 Iowa 32, 111 N.W.2d 297 (1961).