Y. David Scharf Quoted on Amtrak Bid to Take Over DC Union Station in Eminent Domain Case

Partner Y. David Scharf has been quoted in the press recently regarding Amtrak's bid to use eminent domain to take over Washington Union Station. Amtrak currently subleases roughly 13% of the building from Union Station Investco, which is owned by Morrison Cohen client Rexmark.

During arguments on November 28 over the railroad service's effort to take full control of the property, David stated that Amtrak is “not retail, commercial, call it what you want. They're not in the business of doing anything except getting the trains in and out.”

U.S. District Judge Amit Mehta questioned whether Amtrak’s plans are consistent with Congress's intent under a 1981 law that requires the station to be managed with “maximum reliance” on the private sector. Since historically Amtrak “hasn't turned a profit” and is not in the business of retail, Judge Mehta asked, “Shouldn't I be concerned that Amtrak is going to need federal assistance to sustain and maintain the station?”

Another core question is whether Amtrak can claim that “just compensation” for the Union Station property is $250 million, an amount three times lower than Rexmark's appraisal.

In addition to David, Partners Brett Dockwell, Kristin T. Roy and Latisha V. Thompson, Of Counsel Jarrod Neal Bernstein and Associates Amber R. Will and Mahnoor Misbah are representing Rexmark.

This historic case has been covered by the Washington Examiner and Wall Street Journal, among others. Read the most recent Examiner article here. Wall Street Journal subscribers can read the most recent article here.