(The Associated Press circulated the following article on June 20.)
WASHINGTON — The U.S. Supreme Court Monday refused to review whether a lower court properly overturned a $140 million class-action settlement between several telecommunications firms and landowners adjacent to railroad right-of-ways purchased by the companies.
The telecommunications companies purchased railroad right-of-way across the country beginning in the 1980s to expand fiber-optic networks. Adjacent landowners, arguing the railroads in some instances only held rights across private land, have brought lawsuits to be compensated by the telecommunications companies.
In this case, the companies settling include a unit of Sprint Corp.; a unit of Level 3 Communications Inc.; a unit of Leucadia National Corp.; and a unit of Qwest Communications International Inc.
The companies reached a settlement with numerous parties covering right-of-way across the country in September 2002.
“The agreement seeks to end the decades-long dispute over the laying of fiber-optic cables in 48 states,” the companies said, adding the deal provided fair compensation to property owners.
Several landowners objected and fought the settlement in court. After several changes, a U.S. District Court judge in July 2003 approved a settlement.
Again, some landowners objected. On appeal the 7th U.S. Circuit Court of Appeals, Chicago, rejected the lower court’s approval of the settlement class, ruling the class-action settlement was improperly approved by the federal trial court.
The case is Sprint v. Smith, 04-1381.