Dozens of Carolinians are suing the federal government because of the Saluda Grade
Jan 17, 2025
CAMPOBELLO, S.C. (WSPA) - Dozens of plaintiffs across North Carolina and South Carolina are suing the federal government over unpaid compensation for the taking of property along the Saluda Grade rail corridor.
Lewis Rice, a law firm based in St. Louis, told 7NEWS exclusively that the firm has around 150 clients who enlisted its help to get fair compensation for that taking.
The properties in question lie along a 31.5-mile stretch of railroad track between Inman, S.C. and Zirconia, N.C., also known as the Saluda Grade, made possible by a centuries-old easement.
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"The train would stop here and they’d give free wine to the passengers on the train and so we became the 'Friendliest Town of the South'," said Jim Fatland, the Town Manager for the Town of Tryon.
The Saluda Grade was created during the 19th century according to Fatland, as part of a larger national route. The corridor's current owner, Norfolk Southern, ceased operations along the Saluda Grade in 2001, rendering it unused for more than two decades.
"Until recently, [Norfolk Southern] actually decided to abandon it, go through the procedures and negotiate a sales price," said Fatland.
In August, Conserving Carolina, a non-profit land trust based in Hendersonville, announced that it, and two other non-profits, planned to purchase the Saluda Grade rail corridor from Norfolk Southern with the intention of turning the abandoned line into a walking trail.
"So, it wasn't until the railroad sought approval to abandon its line and the trail sponsors, the Saluda Grade Rail Trail Conservancy, requested the federal government's authority to convert this line," said Lindsay Brinton, a lawyer with Lewis Rice. "That, then the federal government issued its order authorizing the conversion - at the same time taking these landowners' state law, property rights- [that we] filed the case."
Brinton explained that the sale of the rail corridor triggered the Takings Clause under the U.S. Constitution's 5th Amendment, forcing affected property owners to bring an inverse condemnation claim for compensation by suing the Federal Government.
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"A portion of their property was taken, so under state law, they should have their land free and clear of any easements on their property," said Brinton. "So, they shouldn’t have a railroad easement, [and] they shouldn’t have a trail easement and now because of a federal law, the federal law pre-empted their state law property rights and instead allows Norfolk Southern to sell this right-of-way for non-railroad purpose and so that’s the 'taking' here. A federal law is pre-empting a state law."
Lewis Rice's clients range from individual property owners in South Carolina to entire municipalities in North Carolina.
Fatland said he convinced Tyron's town council to join the suit because he believed the town could benefit from any possible additional income after Hurricane Helene swept through last fall.
In addition, Fatland expressed his support for the Saluda Grade Rail Project.
"If we get some compensation off of it, it’s money that’s going to come into the town coffers," said Fatland.
Adding any money from the lawsuit would go towards installing public restrooms in downtown Tryon as well as other amenities.
Parcel of land along the Saluda Grade rail corridor in downtown Tryon.
"I see it as an opportunity for the town and the community," said Fatland. "Rather than trains coming through here, it's going to be runners; people on bikes."
Tryon owns four parcels of land along the rail corridor. Not every property owner along the rail corridor is completely on board with the rails-to-trails project.
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Gregory Clay is also suing the federal government for compensation. His land is in Campobello.
Clay said he wanted to build his future retirement home on the land because of the natural landscaping around him. Now he has reservations about it because of the trail project.
"As long as it's taken care of correctly and it serves both the property owners and the greater good, then I’m all for it," said Clay. "But, if it becomes a burden on the adjacent property owners, then that’s a whole other issue."
Part of Gregory Clay's land in Campobello is situated next to the Saluda Grade.
He said he attended a community meeting, hosted by the project's sponsors last fall. He left with answers regarding trail management that didn't satisfy him.
"The issue with me is the safety and security, the cleanliness of the land behind me," said Clay. "I don’t want it to detract from what I have here."
7NEWS spoke with Conserving Carolina, the lead non-profit in charge of the trail project's North Carolina portion and Play Advocate Live Well (PAL), the lead non-profit in charge of the trail project's South Carolina portion, to learn more about the plan.
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A third non-profit based in Greenville, Upstate Forever, is also part of the coalition spearheading the Saluda Grade purchase.
"You know, we’re doing this because there are many, many people in the community who are very excited about this opportunity," said Kieran Roe, Executive Director of Conserving Carolina. "I remember well, those meetings that were well attended and I would say 95% positive feedback from those that came to those meetings."
Roe explained the project's purpose is to create a pedestrian-friendly pathway across state lines, as well as to help preserve the natural landscape that already exists.
"We're gonna keep it preserved as a natural corridor, except for this narrow pathway where there is already developed infrastructure, the rest of that corridor will stay natural, conserved," said Roe. "It's gonna create an opportunity for people to get outside, enjoy nature [and] enjoy healthy exercise."
Laura Ringo, the Executive Director of PAL, said it has been in close contact with "local police" about the plans. The future trail will have specific entry points large enough for first responders to fit onto the trail.
"We’re excited to work hand-in-hand with property owners to make this the best project possible for everyone, so if there are concerns along the way we will work through those together," said Ringo.
Ringo said it hopes to finalize the sale of the rail line by July.
The Lewis Rice law firm told 7NEWS it expects to resolve the lawsuits by the end of spring. It is still actively going through the applications, but said it will eventually add most eligible claims to the lawsuit filed in December.
Brinton said it is not a class-action lawsuit. A copy of that lawsuit is below.
Anne F. Day V. United States of AmericaDownload