Martha L. Butler v. James L. Burrow, Et Al.

This appeal arises from an action for trespass, injunctive relief, and to quiet title pursuant to a theory of common law adverse possession. The multiple parties are adjoining neighbors and/or affiliated businesses. The centerpiece of this litigation concerns the ownership of a strip of railroad property that is 66 feet wide and comprises 2.9 acres. The railroad removed the track and abandoned the property in 1977, after which all that remained was a berm on which the former track lay. After the track was removed, one of the neighboring owners erected a fence along the center of the entire length of the railroad property. Since that time, the neighboring property owners considered the fence to be the new property line and used the 33 feet of the property on their side of the fence as their respective property. However, the neighboring property owners never paid taxes on the abandoned railroad property. In 2015, one of the three defendants acquired the abandoned property by quitclaim deed from the railroad and removed the fence and leveled the berm in order to install a road to serve a residential development planned for an adjacent 42-acre tract. Thereafter, the owners of two separate adjoining properties filed suit against the three affiliated defendants seeking an injunction and to recover damages caused by flood water that had been diverted onto the plaintiffs’ property due to the removal of the berm. The plaintiffs also asserted claims for trespass and to quiet title to the 33 feet of the former railroad property that adjoined their property. The defendants filed counterclaims alleging that the temporary injunction halted development of the road and caused them to suffer damages. Following a bench trial, the court ruled that the plaintiffs acquired half of the abandoned railroad property through adverse possession. The court also awarded damages against the defendants for removing the fence the plaintiffs used to contain their cattle and for flood damage that resulted from the removal of the berm. The court also ordered the defendants to replace the berm. The defendants appealed. We have determined that Tenn. Code Ann. § 28-2-110(a) bars the plaintiffs’ claim of adverse possession because it is undisputed that they did not pay taxes assessed on the railroad property for more than 20 years. Therefore, we reverse the trial court’s determination that the plaintiffs own half of the railroad property and hold that the defendant who acquired the property from the railroad by quitclaim deed in 2015 is the rightful owner of the entire 2.9-acre tract. We also reverse the award of damages to the plaintiffs for replacement of the fence and restoration of the entire berm; however, we affirm the trial court’s determination that the defendants are jointly and severally liable for diverting water onto the plaintiffs’ property by removing the railroad berm, and remand this claim for the trial court to award damages and/or determine the appropriate measures the defendants should take to remedy the flooding caused by the removal of the berm. Further, the defendants claim for damages resulting from the temporary injunction is remanded to the trial court for further proceedings consistent with this opinion.