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MMLU / On May 10, 1955, a rancher, owner of a 300-acre cattle ranch in Texas, conveyed…

Problem

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question

On May 10, 1955, a rancher, owner of a 300-acre cattle ranch in Texas, conveyed a 20-acre strip across the property as follows:"To the railroad, its successors and assigns, to have and to hold so long as the same shall be used for railroad purposes. "In 1972, the rancher made the followingconveyance:"To my daughter and her husband and their heirs, as much of the 300-acre cattle ranch as is not described in my deed to the railroad dated May, 10, 1955. "The following year, the rancher, a widower, died intestate, survived by the daughter and a son. In 2000, the railroad decided to discontinue operating its trains over the strip conveyed in 1955. By 2004, the growth of a nearby town had made the 300-acre cattle ranch valuable as a potential site for homes or for an industrial park. However, as of January 1, 2005, the governing body of the county (in which the ranch sits) took appropriate action, in accordance with Texas statutes, to zone the 300-acre cattle ranch as single-family residential property with a minimum lot size of one acre. The ordinance provided that the exclusion of ranching operations and industrial development was necessary to protect the health of county residents by limiting the extent of waste disposal and preventing pollution of air and the nearby river, the county's major water supply. The state's power authority has now taken appropriate action to condemn half of the 300-acre cattle ranch, which will be flooded as a result of construction of a dam for a proposed hydroelectric facility. The 150 acres taken includes the 20-acre strip described in the deed to the railroad. Is the railroad entitled to any compensation from the state's power authority?

choices

  1. Yes, because if all the leased land is condemned for the full balance of the lease term, the lessee is entitled to compensation for the taking of the leasehold estate.
  2. Yes, because the holder of an easement benefit is entitled to compensation for the value lost.
  3. No, because by discontinuing its operation of trains, the railroad's determinable, feeterminated.
  4. No, because the holder of an easement is not entitled to compensation when the servient tenement is extinguished by condemnation.

subject

professional_law

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