Last week, the Thirteenth Court of Appeals ruled in favor of Texas Central and its newly-formed affiliate ITL, stating that both entities are railroad companies and interurban electric railways under Texas law.
The lawsuit originated in the 87th District Court in Leon County when Barbara and Jim Miles filed suit against Texas Central in an effort to block a survey of his land. However, according to attorney Blake Beckham, the bigger issue has always been about eminent domain.
In February of 2019, District Judge Deborah Evans ruled that Texas Central Railway and Integrated Texas Logistics were not a railroad or interurban electric rail, meaning they do not have eminent domain authority.
This new ruling concludes that the trial court erred by granting Miles’ motion for summary judgment and denying Texas Central’s motion for partial summary judgment.
“This decision is rooted in state law that allows survey access and use of eminent domain by railroads, pipelines, electrical lines and other industries that provide for the public good and a strong economy,” said Carlos Aguilar, CEO of Texas Central. “This decision confirms our status as an operating railroad and allows us to continue moving forward with our permitting process and all of our other design, engineering and land acquisition efforts.”
Texas Central is the company undertaking the development, design, construction, finance, and operation of the proposed high-speed passenger train line that would connect Dallas and Houston via a 90-minute commute.
Currently, the proposed route would cut through the rural Texas counties of Ellis, Navarro, Freestone, Leon, Madison, and Grimes.
According to a press release issued by Texans Against High Speed Rail, while the ruling was not the outcome the Miles expected, they will be appealing the ruling to the Texas Supreme Court.
Blake Beckham, the Miles’ attorney and Special Litigation Counsel to Texans Against HSR (TAHSR), said, “If ever there was a ruling that created ‘the Wild, Wild, West’ of eminent domain authority, this is it. This ruling creates a dangerous precedent that would allow anybody with $300 and a computer to immediately obtain the extraordinary power of eminent domain by simply filing papers with the Texas Secretary of State self-declaring to be a railroad. This is not and cannot be the law in Texas.”
Kyle Workman, Chairman and President of TAHSR, said, “We are disappointed the Court of Appeals treated these fundamental private property rights, cherished by all Texans, with such disregard. This project’s cost estimate is now at $30B, the company has laid off the majority of its staff and still does not have the plans, permits or funds to move forward, so this project is far from shovel-ready as they claim. Jim and Barbara Miles are still in this fight, and we are standing with them, as should all Texans who value private property rights.”
“Texas Central confirms that it will always respect Texas landowners’ rights and will follow due process,” continued CEO Aguilar. “Today’s ruling supports the enormous amount of work Texas Central has done to date. Texas has the capacity, drive and population growth needed to make the Texas High-Speed Train successful and it’s that momentum that is pushing the nation’s first high-speed train forward.”
