The U.S. Court of Appeals for the Federal Circuit has upheld a lower court's decision dismissing a property claim by 233rd Street Partnership, L.P. The ruling, issued on October 20, 2026, confirmed that the partnership does not hold any ownership interest in a rail corridor that was converted into a trail. This decision affects the partnership's ability to seek compensation for what it claimed was a federal taking of its property under the Fifth Amendment.
The case, numbered 25-1849, centers around a dispute involving the ownership of a rail corridor adjacent to property owned by 233rd Street Partnership in the Bronx, New York. The ruling is significant as it clarifies how property rights are interpreted in relation to historical deeds and easements, particularly under New York state law.
Background
233rd Street Partnership owns property located at 170 West 233rd Street, Bronx, New York, which is bordered by an inactive rail corridor. The corridor, measuring 0.77 miles, has not been in use since 1990. The property and the rail corridor were originally owned by John Bogardus in the early 1870s. In 1872, the New York and Boston Railroad Company acquired a permanent easement through condemnation proceedings, followed by a warranty deed that transferred the rail corridor to the railroad.
CSX Transportation, Inc., the successor to the New York and Boston Railroad, operated the rail corridor until its discontinuance in 1990. Following the discontinuation, the City of New York purchased the corridor from CSX in December 2022 and sought permission from the U.S. Surface Transportation Board to convert it into a trail. The Board approved this request in May 2023, leading to a Notice of Interim Trail Use.
In August 2023, 233rd Street Partnership filed a claim in the Court of Federal Claims, alleging that the federal government had taken its property without compensation. The government argued that the partnership lacked any property interest in the rail corridor, leading to a summary judgment in favor of the government.
The Ruling
The Federal Circuit agreed with the lower court's decision, affirming that 233rd Street Partnership failed to demonstrate any ownership interest in the property in question. Judge Bryson, writing for the court, stated, "The May 1872 deed unambiguously granted the New York and Boston Railroad a fee simple interest in the rail corridor." The court emphasized that the partnership did not dispute the legality of the deed but instead speculated about its intent.
The court found that the deed clearly conveyed all rights and interests to the railroad, which meant that 233rd Street Partnership had no basis for its Fifth Amendment taking claim. The court noted, "If 233rd Street Partnership does not have a property interest in the rail corridor, it cannot bring a Fifth Amendment taking claim." This ruling effectively dismissed the partnership's arguments regarding the interpretation of the deed and the earlier condemnation proceedings.
Impact
This ruling has significant implications for property rights and claims under the Fifth Amendment. It reinforces the principle that clear and unambiguous language in property deeds is determinative of ownership interests. The decision may deter similar claims from other property owners who believe they have rights to land adjacent to federally controlled corridors or properties.
Moreover, the ruling clarifies the legal boundaries regarding what constitutes a taking under the Fifth Amendment. It underscores the importance of establishing ownership before pursuing compensation claims against the government. As a result, this case may serve as a reference point for future disputes involving property rights and federal takings.
What's Next
Details were not available in the court filing regarding any potential appeal from 233rd Street Partnership. There is no indication of a related case pending that would affect this ruling.