Landowners in railroad eminent domain case appeal to Georgia Supreme Court

Since the controversy began two years ago, it has pitted a politically connected railroad against longtime property owners, some whose families have ties to their land dating to slavery. The legal battle also tests the limits of eminent domain powers in Georgia and has the potential to set precedent for how railroads as public utilities are able to condemn property to expand their businesses.

Eminent domain is when a government or utility forces a private property owner to sell some or all of their land for public use. The Fifth Amendment to the U.S. Constitution protects against abuse of eminent domain and requires “just compensation” for seized property. Georgia law requires a court’s determination that a project serves a “public use,” adding that economic development alone is not enough.

Institute for Justice Attorney Betsy Sanz, who represents the 15 landowners in the rail spur’s path, said this is an overreaching business venture.

“The Georgia Supreme Court must make it clear that a private company cannot use the state’s eminent domain power to take people’s land for the benefit of a few private companies that don’t serve the public,” Sanz said in a Monday statement.

The landowners have been joined in the appeal by a grassroots group of their neighbors.

The Hanson Spur would connect at least five private companies, including quarries and pulp mills, to the broader CSX rail network. Sandersville Railroad has reached agreements to buy at least half the 18 parcels it seeks to condemn, and said its spur will boost tax revenues, pump $1.5 million annually into the area economy and create a dozen new jobs with average salaries of $90,000.

Ben Tarbutton III, the railroad’s president, said the IJ’s arguments have been repeatedly rejected “based on Georgia law, which makes it clear that railroads are public utilities and land used for the functioning of railroads and opening channels of trade are legitimate public purposes.”

“That said, we would welcome the opportunity to return to the negotiating table with the remaining families,” he said in a written statement. “Their willingness to sell the 2 to 7 percent of their land necessary for the Hanson Spur could make a positive difference for 100 percent of Hancock County.”

The Southern Poverty Law Center is another party trying to stop the condemnation on behalf of No Railroad in Our Community Coalition, a group of Hancock County residents whose land isn’t in the spur’s path but who oppose the project.

The Georgia Public Service Commission last April approved Sandersville Railroad’s eminent domain plan, which was upheld last month in Fulton County Superior Court. In anticipation of an appeal, the judge stayed his ruling from going into immediate effect.

A pending case in Hancock County Superior Court is evaluating the value of the remaining parcels the railroad looks to condemn, which would determine the sales prices.