**Railroad Loses Bid to Block Town’s Land Claim**
The D.C. Circuit upheld the Surface Transportation Board’s refusal to declare federal law supreme over a Massachusetts town’s right-of-first-refusal claim on forest land the Grafton & Upton Railroad wants for new track. The court ruled that ICCTA preemption does not block the town’s state-court suit to enforce its Chapter 61 rights.
Grafton bought the Hopedale parcel intending to build rail facilities. Massachusetts’ Chapter 61 gives towns a right of first refusal when classified forest land is sold. After Hopedale sued in state court to unwind the sale, Grafton asked the STB for a declaratory order that federal rail law wipes out the town’s claim. The Board declined, and Grafton appealed.
The D.C. Circuit agreed with the Board. It held that the town’s lawsuit does not attempt to regulate rail operations or unreasonably burden interstate commerce; it merely seeks to determine who owns the land. Because ownership disputes are traditionally state matters and do not directly regulate rail transportation, ICCTA does not preempt them. The decision leaves Grafton to litigate title in Massachusetts courts before it can build.
For short-line operators eyeing land deals, the ruling means state property rules still matter even on rail projects. Railroads cannot assume federal preemption will automatically kill local land claims.
**Bottom Line:** State land-law fights can still derail rail projects until title is settled.
https://www.courtlistener.com/opinion/10870700/grafton-upton-railroad-company-v-stb/
What land-purchase surprises have you faced on rail or trucking projects?