Rails-to-Trails Litigation
Protecting property rights in South Dakota and beyond
Understanding a unique property rights issue
When railroads turn into trails, landowners deserve fairness
Most landowners assume that when a railroad abandons its tracks, the land beneath them will return to the adjoining property owners. But under the federal Trails Act, these corridors are often “railbanked” and converted into recreational trails instead. While trails are popular with the public, this process often denies landowners their rightful property use. George Nelson is one of only a handful of attorneys in the nation who litigates these complex cases, working to ensure landowners are compensated when their property is taken for public trails.
What is rails-to-trails litigation?
How railbanking affects private property
Rails-to-Trails litigation arises when a railroad abandons service on a line but the land does not revert to adjacent property owners as expected. Instead, the federal government authorizes its use as a trail under the National Trails System Act. This interrupts the normal reversion of land rights and effectively takes a strip of land from private landowners. While this benefits the public, it leaves owners with diminished rights and no automatic compensation. Litigation is often the only way to secure payment for the land taken, and these claims are typically pursued in the U.S. Court of Federal Claims.
Why landowners are entitled to compensation
The constitutional foundation for these claims
Most rail corridors were created as easements, not outright ownership by the railroad. Under state property law, once the railroad stops operating, those easements end, and the land should return to the property owners. When the Trails Act blocks that reversion and preserves the land for trail use, it constitutes a “taking” under the Fifth Amendment of the U.S. Constitution. Courts have repeatedly ruled that landowners must be compensated at fair market value for this government action. George Nelson helps landowners assert these rights and secure the financial recovery they are owed.
Our experience in these cases
Representing landowners across South Dakota
George Nelson is actively representing groups of South Dakota landowners affected by rail-to-trail conversions, including a case involving a 24-mile corridor in south-central South Dakota. These matters require reviewing decades of land records, deeds, and easements to determine ownership rights. George’s unique experience in property law and federal claims gives him the insight needed to challenge the government effectively. He works with landowners individually and in groups, sometimes joining broader actions across multiple states, ensuring that this niche area of litigation is accessible to those affected in South Dakota and beyond.
The legal process for landowners
From notification to federal litigation
Pursuing a rails-to-trails claim involves a highly specialized legal process. Landowners often receive little or confusing notice about a planned trail conversion, leaving them uncertain about their rights. George guides clients through every step:
Deed & easement analysis
Reviewing land titles and railroad deeds to determine whether a valid claim exists.
Notice of Interim Trail Use (NITU)
Identifying whether a federal order has been issued that triggers compensation rights.
Filing claims
Preparing and filing cases in the U.S. Court of Federal Claims, where these lawsuits must be heard.
Evidence & valuation
Working with appraisers to establish fair market value for the land taken.
Collective representation
Organizing groups of landowners to strengthen claims and share resources.
This process is highly time-sensitive, and missing deadlines can mean forfeiting your right to compensation.
Challenges landowners face
Why you need experienced representation
Many landowners don’t realize they are entitled to compensation until it’s too late. Notices from the government or trail groups are often technical and unclear, and by the time landowners act, deadlines may have passed. Even when claims are filed, the Department of Justice vigorously defends these cases, requiring experienced counsel who understands both federal law and property rights. George provides the clarity and advocacy landowners need to stand up against government overreach and secure what they are owed for their property.
Rails-to-Trails cases explained
Common questions from landowners
I heard an old railroad near my property might become a trail. What should I do?
If you receive notice of a possible trail conversion, act quickly. Once a Notice of Interim Trail Use is issued, you have a limited time to file a claim. George can review your property documents to determine if you are entitled to compensation and explain your options.
How is compensation calculated?
Compensation is based on the fair market value of the land taken. Appraisers evaluate the strip of land through your property and determine its worth. Each landowner is compensated individually, often based on the size and location of their property along the corridor.
Does it cost me anything upfront to join a lawsuit?
In most cases, no. These cases are typically handled on contingency, meaning you don’t pay unless compensation is secured. In many situations, the government may also be required to pay legal fees as part of a settlement or judgment.
I don’t live near Rapid City. Can George still represent me?
Yes. These cases are filed in federal court, which allows George to represent landowners statewide and often beyond South Dakota. Communication is easily handled by phone or email, and travel is arranged as needed to meet with clients.
The railroad or trail group offered me money. Should I accept?
Not without legal advice. Initial offers may undervalue your rights, leaving you with far less than the land is worth. George will review any proposed agreements to ensure you are not signing away valuable claims.
Stand up for your property rights
Protecting landowners from uncompensated takings
Land is one of your most valuable assets, and when the government takes it for public use, you deserve just compensation. Rails-to-Trails litigation is a niche but important area of law, and George Nelson is committed to representing landowners whose rights are at risk. Contact our office today for a consultation to discuss whether you qualify for a claim. Whether you live in Rapid City, rural South Dakota, or another state, we are prepared to help protect your property rights.
