Knoxville Landowners Reach Nearly $350,000 Settlement in the SoKno Trail Case

KNOXVILLE, TN, UNITED STATES, October 29, 2026 /EINPresswire.com/ — Stewart, Wald & Smith, LLC announced that it has successfully settled a federal lawsuit on behalf of seven Knoxville landowners whose properties adjoin the railroad corridor planned for the South Knoxville, or SoKno, Trail. The total settlement for the seven landowners is nearly $350,000.

The settlement, reached in October 2026, resolves Alliance Place, LLC, et al. v. United States, Case No. 25-2088L, one of three lawsuits concerning the corridor. The two related cases remain pending in the United States Court of Federal Claims: Roach, et al. v. United States, Case No. 25-576, and Willis, et al. v. United States, Case No. 26-1045L.

The cases arise from the planned conversion of approximately 3.8 miles of the Knoxville & Holston River Railroad corridor into a recreational trail. The route connects the Chapman Highway area with Ijams Nature Center. On March 28, 2025, the United States Surface Transportation Board issued a Notice of Interim Trail Use or Abandonment for the corridor, allowing the railroad and the City of Knoxville to implement interim trail use while preserving the corridor for possible future rail service.

The landowners’ claims concern the Fifth Amendment’s requirement of just compensation when private property is taken for public use. Under the federal railbanking process, a corridor may be preserved for possible future railroad service and used as a trail in the interim. Depending on the property rights involved, landowners may have a claim when that process prevents the land underlying the railroad’s easement from reverting to their ownership.

The lawsuits seek compensation from the United States; they do not seek to stop the trail. The Alliance Place settlement resolves the claims in that case and does not determine the outcome of the two remaining lawsuits. Property rights and potential compensation depend on the facts of each property and claim.

“As communities pursue new recreational trails, it is important to remember that the Constitution protects private property rights,” said Michael J. Smith, attorney at Stewart, Wald & Smith. “These cases are not about stopping trails—they are about ensuring that landowners receive the compensation guaranteed by the Fifth Amendment when their property rights are affected.”

–Why are these lawsuits being filed?–

Under the federal National Trails System Act, a railroad corridor that otherwise could have been abandoned may instead be converted to interim trail use while preserving the corridor for possible future railroad service. In many cases, adjoining landowners contend that, absent the federal Trails Act, railroad easements would have terminated under state property law and the land underlying the railroad would have reverted to them. When the federal government authorizes interim trail use instead, those owners may have a claim for compensation under the Fifth Amendment.

The United States Court of Federal Claims has exclusive jurisdiction over these constitutional takings claims against the federal government.

–Continuing Interest in the SoKno Trail–

The firm continues to investigate additional claims on behalf of property owners whose land adjoins the former Knoxville & Holston River Railroad corridor. Because ownership and property rights vary from parcel to parcel, each property requires individual legal analysis. The firm continues to investigate potential claims on behalf of owners of property adjoining the corridor and believes there are over 60 landowners who could potentially be compensated along this 3.8-mile rail corridor. Landowners who would like to discuss their property may contact Stewart, Wald & Smith at (314) 720-0220 or visit www.swslegal.com.

–About Stewart, Wald & Smith–

Stewart, Wald & Smith, LLC is a national law firm representing landowners in Fifth Amendment rails-to-trails cases throughout the United States. The firm has represented thousands of property owners in claims arising under the National Trails System Act and has recovered millions of dollars in compensation for landowners whose property rights have been affected by rail-to-trail conversions.

Jacqueline Tebbe
Stewart Wald and Smith, LLC
+1 314-720-0220
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