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Supreme Court confirms that Texas Central is a railroad

Hope it’s not too little, too late.

The Texas Supreme Court on Friday gave the go-ahead to beleaguered plan to build a bullet train connecting Houston and Dallas, ruling that companies behind the project have the power to acquire private property through eminent domain. .

In a 5-3 ruling issued Friday, the high court said that Texas Central Railroad and Texas Logistics could indeed be considered as an “interurban electric railway companies” under state law, even though they have yet to build a railroad, and may never do so.

The decision culminates a years-long legal battle, launched by landowners along the bullet train’s route shortly after project was proposed. One of them, Leon County rancher James Fredrick Miles, filed suit in 2016, after Texas Central sought to survey the roughly 600 acres he owns along its “preferred” route—land which would be bisected if the bullet train is built.

The case turned on what it means to be a “railroad company” or “interurban electric railway company,” which have eminent domain authority under the state Transportation Code.

On HoustonChronicle.com: Critics say the idea of a Houston-Dallas bullet train could be over

Miles, along with other property owners argued that Texas Central didn’t qualify because it wasn’t operating a railroad and may never do so. Texas Central has yet to build any tracks or train stations, or acquire the Japanese Shinkansen railcars called for in the project proposal.

The project’s proponents, however, argued that this line of reasoning yielded a chicken-and-egg problem that would make it impossible to ever build a rail line.

A trial court sided with Miles. A court of appeals in 2020 overturned that ruling, leading Miles to petition the Texas Supreme Court for review. Friday’s ruling affirms the appellate court’s ruling.

See here for the previous update, and here for the majority opinion; there were two concurrences and two dissents, and you can find all of those documents here. As the story notes, this ruling comes at a time of turmoil for Texas Central. It’s not clear if this will finally enable them to move forward with construction, or if the only beneficiary will be whatever tries to resurrect the idea of a privately-run high speed railroad following their downfall. But in the end, they were indeed a railroad. That has to mean something.

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