TEXAS CENTRAL APPEALS GRIMES COUNTY SURVEY INJUNCTION

Jewett, Texas – Grimes County officials have released a statement regarding the county’s lawsuit against Texas Central Partners, in which Judge Albert McCaig permanently enjoined Texas Central or its agents from conducting surveys that would alter or damage county rights-of-way, and Texas Central has now appealed this ruling. The summary judgment by Judge McCaig was issued in April and prohibits Texas Central from performing the types of surveys needed to progress the high-speed rail project forward to construction. Although Texas Central attempted to downplay the significance of the ruling, the company’s appeal indicates they need this ruling to be overturned in order to proceed with their proposed Dallas Houston HSR plan.

Following a press conference held by Grimes County Judge Ben Leman on May 9, Texas Central attempted to spin the ruling by claiming that the company was still able to perform surveys, just not ones that alter or damage county rights-of-way.

In addition to his statement following the Grimes County summary judgment ruling (found here), Judge Leman added, “If determining property lines and elevation were the only things needed to construct a high-speed rail across our county rights-of-way, the company could be in the clear to move forward with surveys. However, information that can only be obtained through surveys that alter or damage county rights-of-way is required to determine foundation material type and design, among other critical construction decisions. Additionally, Grimes County requires proof of eminent domain authority prior to issuing a permit for high-speed rail construction on county rights-of-way. The county’s understanding of Judge McCaig’s ruling is that if Texas Central had the power of eminent domain, the court could not have enjoined the company from conducting the activities prohibited by the court’s permanent injunction. Having failed to provide proof of eminent domain authority to Judge McCaig, we feel confident that Texas Central will be unable to satisfy Grimes County’s regulation requiring proof of eminent domain authority. This regulation has also been passed in seven other counties along the affected corridor. Without proof of eminent domain authority, Grimes County and these other counties will not issue an HSR construction permit to Texas Central.”

Kyle Workman, President of Texans Against High-Speed Rail, weighed in on the appeal saying, “Texans Against High-Speed Rail has a long enough history with Texas Central to quickly recognize their spin and switch tactics. On one hand, they dismiss the severity of the ruling, pointing fingers at county officials. On the other, they quietly appeal because they cannot progress their project with this injunction in place. They have just enough marketing money to spin any negative news about their project to protect investor confidence; yet, they have secured little, if any, of the now 16 billion dollars (and growing) estimated construction costs. This project is nowhere near shovel ready; it doesn’t meet any of the America First requirements set forth by the Trump administration, and our state leaders have said they want nothing to do with helping to advance this project. It’s becoming more clear every day that Japan’s HSR export dreams are turning into a financial, legal and regulatory nightmare.”

Media representatives are encouraged to reach out to Texas Central for the spin on their appeal of this ruling. Texans Against High-Speed Rail, a group of average, everyday landowners attempting to protect property rights of all Texans, works to hold Texas Central to their claims while uncovering information vital to public review to prevent irreversible property value loss and eminent domain abuse.

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ABBOTT HAS OPPORTUNITY TO STEER CLEAR OF TRANS-TEXAS CORRIDOR REDUX

Jewett, Texas – Two bills requiring additional security and precluding state funds for private high-speed rail are heading to the desk of Texas Governor Greg Abbott, who is expected to sign the bills in keeping with his fiscal conservatism and to set a higher standard for HSR safety and security. Authored by Senator Brian Birdwell and House companion bill authored by Representative Leighton Schubert, SB 975 (HB 2169) sailed through the Senate and House as it relates to requiring highspeed rail providers to have increased security above and beyond what the current promoter of the Dallas Houston HSR has in its plans. SB 977 (HB2172), Senator Charles Schwertner (et al) and Representative Trent Ashby (et al) faced only slight opposition from Dallas and Houston area Democrats but ultimately made its way to passage when the vastly conservative Legislature supported precluding state funds from being spent on private high-speed rail projects.

It is important to note that both SB 975 and SB 977 were opposed by Texas Central company officials in public hearings in the Senate Transportation Committee. Their position on SB 977 was especially ironic since company officials have been publicly stating for the last several years that no state funds would be needed for their private project. However, once company officials and their twenty-plus lobbyists realized the majority of legislators supported these common-sense bills, company officials changed their position(s) during subsequent committee hearings. Texas Central’s official position was neutral on HB 2172, yet still opposed the companion to SB 975 (HB 2169). And on the day before the floor vote in the House for both bills, in keeping with the status quo of saying one thing then changing it later, the company disseminated information capitulating their opposition to avoid the perception of a devastating loss under the dome.

Kyle Workman, President of Texans Against High-Speed Rail: “We are a humble group of landowners who are standing up to protect our land, our neighbors and our state. We are thankful that the entire Texas Legislature shares our concern about the negative effects the Dallas Houston HSR could have on our state. These bills don’t discriminate and don’t hinder their opportunity to move this project along as a free-market, private venture. And while we highly doubt they can construct this project without proof of eminent domain or state funds, should they proceed, tax dollars, landowners and communities will be much better protected from this Japanese funded boondoggle.”

Representative Leighton Schubert, HB 2169 author: “We live in a time when we must be practical and realistic about threats to our society, particularly threats to public transportation. This is a common-sense measure that requires that any future high-speed rail operation, if built, ensures the safety of passengers and employees, as well as the communities in and around the rail routes.”

Senator Brian Birdwell, SB 975 author: “While I maintain my steadfast opposition to the Dallas-to-Houston high-speed rail project―both for the landowners who will be harmed by it in the short term and for the Texas taxpayers who will likely be asked to subsidize it in the long term―I am proud of the legislature for passing my SB 975 to ensure the public safety and security of all those on and around any future high-speed rail line in Texas.”

Senator Charles Schwertner, SB 977 author: “Despite their insistence that this high-speed rail will be built entirely with private funding, Texas Central nonetheless fought efforts to hold them to that promise at every turn. By prohibiting the state from spending public funds on a private high-speed rail project, SB 977 will finally require Texas Central to put their money where their mouth is and guarantee that state taxpayers are never asked to subsidize, bail out, or otherwise financially support this ill-conceived high-speed rail project.”

Representative Trent Ashby, HB 2172 author: “While I hope this boondoggle never materializes, I felt it was important to go ahead and codify that no state dollars will be appropriated for the construction and operation of this proposed high speed rail project. The passage of Senate Bill 977 will bind this private company to their claim that they do not need state funding for this project.”

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TEXAS CENTRAL SERVES INJUNCTION LAWSUIT IN KENDALL COUNTY, 250 MILES FROM HARRIS COUNTY WHERE THE PROPERTY IS LOCATED

Jewett, Texas – Following Judge Halbach’s denial of Texas Central’s motion for summary judgment “in its entirety” in the injunction lawsuit against landowner Calvin House, Texas Central attempted to spin the ruling and downplay its significance. In its December 20 press release, Texas Central said that it is looking forward to its day in court, where “we will show in a full trial that state law, established for more than a century, clearly gives railroad companies the right to conduct land surveys without interference.” Trial is scheduled for July 3, 2017.

What Texas Central didn’t say was that it already had its day in court at a hearing in September 2016, when it “passed” on its request for a temporary injunction after Judge Halbach made comments indicating that the request would be denied. Texas Central also left out the fact that Mr. House agreed to go to a “full trial” in November 2016, and that it declined his offer and filed its unsuccessful motion for summary judgment instead. Texas Central ended its statement with the following promise: “Meanwhile, we will continue to work with landowners in a direct and respectful manner as the project moves ahead as planned.”

Unfortunately for Texas Central, actions speak louder than words. Immediately following the release of its statement on December 20, Texas Central began attempts to serve yet another injunction lawsuit against a Harris County landowner. Texas Central filed the lawsuit back in June 2016 in Kendall County near San Antonio, where the landowner lives. In the suit, Texas Central claims harm is “imminent” and “immediate” and that “without examination and survey of the Property, the proposed high-speed rail line project will be indefinitely suspended….” Yet, Texas Central let the case sit idle for months, until October 21 when it requested the necessary papers from the court to serve the lawsuit. Coincidentally, this was just two days after Texas Central filed its motion for summary judgment against Mr. House in Harris County. Texas Central’s fallback plan was in place. If it lost on summary judgment in Harris County, it could move forward with service immediately in Kendall County, 250 miles from the court where it had just lost. Texas Central followed through with its plan and served its lawsuit on January 3.

Blake Beckham, special litigation counsel for Texans Against HSR, said, “After giving up at the temporary injunction hearing and then losing outright on summary judgment in Harris County, it appears that Texas Central now wants to go halfway across Texas to try its identical losing arguments out on a new judge. They’re desperately looking for an easy win against an unsuspecting landowner, hoping that some court, somewhere, will say that this under-funded startup is an actual railroad with eminent domain power in Texas. This is some of the most egregious forum shopping I have experienced in my 30 years of practice.”

Texans Against HSR President Kyle Workman said, “After Judge Halbach’s ruling, we asked Texas Central to stop its harassment of Texas landowners. And what did they do? They served another lawsuit 250 miles away, hoping nobody would find out about it. This is not what I would call working with landowners in a direct and respectful manner. It is deceitful and outright bullying, and it needs to stop.”

Texas Central has sued over 40 landowners in at least six counties to gain access to private property. In each and every lawsuit, Texas Central has claimed it is a railroad with eminent domain authority. Texas Central has also been repeating this claim to landowners for more than a year in an effort to obtain surveys and option contracts. However, no Texas court has ruled in Texas Central’s favor, nor has any court ordered an injunction against a landowner to allow Texas Central access to private property.

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TEXAS CENTRAL IS NOT A RAILROAD, NO EMINENT DOMAIN MAJOR HSR OPPOSITION VICTORY

Texas Central Railroad & Infrastructure’s motion to be declared a railroad with eminent domain authority denied by Harris County judge.

Jewett, Texas – Last Friday, landowner Calvin House and Texans Against High-Speed Rail delivered another devastating blow to Texas Central’s ill-advised Dallas Houston High-Speed Rail project. In Harris County – on Texas Central’s homecourt where it has sued more than 20 landowners – the Court denied Texas Central’s motion for summary judgment “in its entirety.”

In doing so, the Court ruled against Texas Central on its claim that it is a railroad with eminent domain authority and the right to survey private property. As it stands, Texas Central has no legal right to enter onto private property, nor does it have the right to force landowners to sell their property under the threat of eminent domain. In short, everything Texas Central has been telling landowners for the past year has been completely false. Hopefully now, after having lost twice in its own backyard, Texas Central will finally realize that – in Texas – merely saying you’re a railroad doesn’t mean that you are a railroad.

Landowner Calvin House said he is pleased with the ruling, but the whole experience has taken a toll on both his family and his business. “Texas Central came to my property six different times asking for a survey. Every time they told me they had eminent domain. Then, they sued me, and I had to hire a lawyer. Now I see why they never could show me a piece of paper saying they had eminent domain like condemning authorities are required to do. It’s because they never had it to begin with. I’m glad the court ruled in my favor, but I sure didn’t like being harassed for months, sued, and forced into court.”

Our legal team, led by Blake Beckham, Patrick McShan and Alec Pedigo of The Beckham Group, along with Glenn Sodd, Jason Sodd, and Jody McSpadden of the Dawson Sodd law firm, worked countless hours to protect Mr. House’s and all Texans’ private property rights.

Beckham said, “Texas Central picked Harris County, the court, and the landowner. They brought in every bit of legal firepower money could buy. And they lost. Again. This is a landmark victory for all Texas landowners. The ruling makes it crystal clear that Texas Central is not a railroad and does not have eminent domain authority. With no legal authority, no money, and no approval to construct, the project is on a train to nowhere.”

Kyle Workman, president of Texans Against High-Speed Rail, said, “We are not surprised by this decisive ruling, given that Texas Central has never produced proper documentation of eminent domain authority. They knew this issue was before the courts, but that hasn’t stopped them from bullying their way onto property while misrepresenting themselves as a railroad with the power of eminent domain. We call for Texas Central to immediately cease their underhanded tactics to gain access to private property, as they have no right to demand access or coerce option contracts with private property owners.”

Texans Against High-Speed Rail Chairman and Grimes County Judge Ben Leman commented, “Look, this ruling is a smoking gun. This company has been threatening and suing landowners, sending harassing letters, trespassing, and pushing option contracts with the threat of eminent domain for over a year, and they have been doing so without any proof of eminent domain. This is not only egregious, but counter to the way we operate in this great state. The Japanese should reconsider where they implement their train, because in Texas we respect private property rights and will not tolerate this type of behavior.”

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