The United States Court of Appeals for the Seventh Circuit ruled on August 7, 2026, that CSX Transportation, Inc. does not have the right to exclude Zayo Group, LLC from installing fiber optic cables under its railroad tracks. This ruling impacts CSX's ability to control utility installations on its easements and could affect similar disputes in the future.
CSX Transportation operates extensive railroad lines across Indiana and other states. The company claimed that Zayo Group, a telecommunications provider, installed fiber optic cables beneath CSX's tracks without permission. CSX argued that this violated its property rights under Indiana law, which it believed included the right to exclude third parties from the air above and ground below its tracks. The case was filed in the Southern District of Indiana and later appealed to the Seventh Circuit under docket number 25-1670.
The dispute arose when CSX alleged that Zayo did not pay the required licensing fees or undergo necessary safety reviews before installing its cables. CSX initially filed a lawsuit in November 2021, claiming multiple counts against Zayo, including criminal trespass and civil trespass. However, the district court dismissed several claims, ruling that CSX did not have standing to assert these property rights. The court also held that many of CSX's claims were barred by the statute of limitations.
In its appeal, CSX maintained that its easements included the right to exclude Zayo's installations and to charge for licensing those installations. However, the Seventh Circuit, led by Judge Pryor, affirmed the district court's decision. The court stated, "Neither property right asserted by CSX is necessarily included in the scope of its railroad easements under Indiana law." This ruling indicates that CSX's easements do not automatically grant it the authority to control utility installations that do not disrupt its operations.
The court's ruling clarified the scope of railroad easements in Indiana, emphasizing that these rights are limited to the operational needs of the railroad. The judges noted that CSX's easements do not include the right to exclude third parties from using the air above or the ground below its tracks, as long as those uses do not interfere with CSX's operations.
This decision has significant implications for CSX and other railroads in Indiana. It sets a precedent regarding the limitations of railroad easements and the rights of utility companies to install infrastructure without the railroad's consent. The ruling suggests that railroads may need to negotiate with utility companies rather than assert blanket rights over their easements.
Looking ahead, CSX may consider its options for appeal or further legal action. However, details on whether CSX plans to pursue an appeal were not available in the court filing. The case highlights the ongoing tensions between utility companies and railroads regarding the use of land and infrastructure.