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MCI WorldCom Communications, Inc. v. METRA Commuter Rail Division of the Regional Transportation Authority

Case Date: 03/10/2003
Court: 2nd District Appellate
Docket No: 2-01-1438 Rel

No. 2--01--1438

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

MCI WORLDCOM COMMUNICATIONS, INC., 

          Plaintiff-Appellant,

v.

METRA COMMUTER RAIL DIVISION OF
THE REGIONAL TRANSPORTATION
AUTHORITY, CMC HEARTLAND PARTNERS,
and UNKNOWN OWNERS,

          Defendants-Appellees.

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) 		Appeal from the Circuit
Court of Lake County.


No. 00--ED--30




Honorable
Henry C. Tonigan III,
Judge, Presiding.

JUSTICE BOWMAN delivered the opinion of the court:

Plaintiff, MCI WorldCom Communications, Inc. (WorldCom),appeals the judgment of the circuit court of Lake County in favorof defendants, METRA Commuter Rail Division of the RegionalTransportation Authority (METRA) and CMC Heartland Partners (CMC),denying its petition seeking to condemn METRA-owned property. WorldCom challenges the court's findings and its interpretation ofthe Telephone Company Act (Act) (220 ILCS 65/4 (West 2000)).

On December 22, 2000, WorldCom filed its complaint seeking toacquire a permanent easement for the construction, operation, andmaintenance of an underground fiber optics telecommunications lineunder a railroad crossing (crossing parcel) intersecting withOsterman Avenue in Deerfield. On January 31, 2001, defendantsfiled a traverse and moved to dismiss the complaint. After anevidentiary hearing, the court granted the traverse and dismissed the complaint.

The following facts were established at the hearing. Thecrossing parcel was originally owned by the Chicago Milwaukee & St.Paul Railway Company (Milwaukee Road). After Milwaukee Road wentbankrupt and its residual assets were transferred to CMC RealEstate Corporation, the Regional Transportation Authority (RTA)condemned a portion of Milwaukee Road's assets, including thecrossing parcel. CMC Real Estate and the RTA entered into twoagreements regarding the crossing parcel. In the stipulationagreement, the RTA acquired the crossing parcel and simultaneouslydeeded the property to METRA. The second agreement, titled the"Fiber Optics Agreement," granted CMC Real Estate the right toreceive two-thirds of the income received by METRA for fiber opticeasements. The "Fiber Optics Agreement" further provided that CMCReal Estate would act as METRA's agent in negotiating the fiberoptics easement. In 1989, CMC Real Estate transferred its interestin the "Fiber Optics Agreement" to the Chicago MilwaukeeCorporation, and Chicago Milwaukee Corporation, in turn,transferred its interest to CMC.

The acquisition of the easement under the crossing parcel waspart of a project to connect the WorldCom network with an Ameritechfacility in Deerfield. WorldCom claims that the easement isnecessary to complete the project. The dispute arose when DonaldWheeler, WorldCom's senior real estate and permit manager, informed Jim Konstantelous of CMC that WorldCom intended to acquire theeasement under the crossing parcel. After WorldCom made a finaloffer of $20,000 and CMC demanded no less than $100,000, thenegotiations broke off. Subsequently, WorldCom brought suit tocondemn the crossing parcel.

After the hearing, the court determined that METRA owns thecrossing parcel in fee simple and that METRA's status as agovernmental entity prohibits WorldCom from exercising its power ofeminent domain. WorldCom now appeals, asserting that (1) the Actgrants WorldCom the power to condemn METRA property, (2) the courterred by finding that METRA owns the property in fee simple, and(3) METRA's actions amount to a violation of the FederalTelecommunications Act of 1996 (FTA) (47 U.S.C.