Case Explained: CSX TRANSPORTATION, INC v. ZAYO GROUP, LLC

Court: United States Court of Appeals for the Seventh Circuit Filed: 2026-08-07 The seventh-circuit affirmed the district court’s dismissal of CSX Transportation, Inc.’s claims against Zayo Group, LLC regarding unauthorized fiber optic cable installations under Indiana railroad easements. The court held that under Indiana law, a railroad easement does not necessarily include the right to exclude third parties from installing infrastructure in the air above or ground below the tracks if such installations do not interfere with railroad operations, nor does it include the right to charge licensing fees for such installations. Applying the principle that an easement’s scope is defined by its specific purpose—transportation of goods via a rail line—the court reasoned that rights to the subsurface and airspace remain with the servient estate owner unless they impede the railroad’s operations. Additionally, the court ruled that Zayo’s cable installations did not constitute “continuing trespasses” under Indiana law; because the installations were permanent upon completion and any future maintenance was predictable, the statute of limitations began to run at the time of each initial installation rather than continuing until removal. Consequently, claims regarding installations occurring before November 2019 (for criminal trespass and licensing theft) and November 2015 (for civil trespass and rent) are time-barred. The practical consequence is that CSX cannot recover damages for these past unauthorized installations or assert a property right to exclude utilities from the airspace and subsurface of its easements absent operational interference, leaving such rights with the underlying landowners. Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.