United States v. Union Pacific Railroad

MEMORANDUM AND ORDER

This case arises out of the “Storrie Fire” that occurred on August 17, 2000 and resulted in damages to approximately 52,000 acres of National Forest System (“NFS”) land in the Plumas and Lassen National Forests before it was suppressed. This matter is before the court on four motions for partial summary judgment, three brought by defendant Union Pacific Railroad Company (“defendant” or “UP”) and one brought by plaintiff United States of America (“plaintiff”). In general, the motions ask the court to adjudicate core legal issues regarding the proper measures of alleged natural resource damages in this action and to issue specific orders defining the application of those measures. Because the motions raise overlapping issues, the court considers them jointly herein.

At issue are the following key questions: (1) whether diminution of market value of the subject real property is the proper, over-arching measure of plaintiffs natural resource damages in this case; (2) if diminution in market value is not the proper standard, whether plaintiff may recover as separate and distinct injuries alleged timber damages, of over $121 million, reforestation costs, between…