Stewart, Wald & Smith files new Lakeshore Trail lawsuit in Muskegon

Stewart, Wald & Smith has filed a new federal Rails-to-Trails lawsuit on behalf of additional Lakeshore Trail landowners in Muskegon, after recovering more than $755,000 in an earlier case for 25 property owners. The firm is also holding free meetings this month to explain who may still be eligible for compensation.

Why it matters: - The new case could open the door to compensation for additional landowners whose property interests may have been affected when a former railroad corridor became the Lakeshore Trail. - Rails-to-Trails disputes can hinge on whether the railroad held only a use right, not full ownership, under the land. - If the conversion triggered a federal taking, adjoining owners may have a Fifth Amendment claim for just compensation.

What happened: - Stewart, Wald & Smith filed Ghezzi v. United States, Case No. 26-680L, in the U.S. Court of Federal Claims. - The lawsuit covers additional landowners along the Lakeshore Trail in Muskegon. - The firm said this is its third lawsuit involving the Lakeshore Trail corridor. - Earlier this year, Stewart, Wald & Smith recovered $755,902 for 25 landowners in 1950 Lakeshore Drive, LLC, et. al. v. United States, Case No. 22-902L. - The earlier settlement compensated those owners for the federal taking tied to the trail conversion.

The details: - The lawsuit seeks payment from the United States government for property owners who may have lost valuable property rights. - The former railroad corridor was converted into a public recreational trail. - Whether a property qualifies depends on its ownership history and records. - Stewart, Wald & Smith says many people assume railroads owned the land under their tracks, but in many places the railroad only held a right to use the land for railroad operations. - When rail service ends, those rights can end too, and ownership may revert to adjoining property owners. - The firm says property owners who believe their land adjoins the Lakeshore Trail corridor may still be eligible to join the new case. - The firm is hosting three complimentary informational meetings for nearby property owners. - The meetings are set for Wednesday, August 19, 2026 at 6:00 p.m., and Thursday, August 20, 2026 at 9:00 a.m. and 5:00 p.m. - All meetings will be held at the Boys & Girls Club of the Muskegon Lakeshore Conference Room, 900 W. Western Ave., Muskegon, MI 49441. - The sessions will cover the new lawsuit, how Rails-to-Trails cases work, questions from property owners, and who may be eligible for just compensation. - Stewart, Wald & Smith is a national law firm devoted exclusively to Rails-to-Trails litigation. - The firm says it has represented thousands of landowners for more than twenty years and recovered more than $415 million in compensation. - More information is available at the firm’s website or by calling (314) 720-0220. - The release also lists contact information for Jacqueline Tebbe at Stewart Wald and Smith, LLC, including the same phone number. - The release includes social media links for LinkedIn, Instagram, Facebook, YouTube and X.

Between the lines: - The firm is signaling more claims may follow if additional Lakeshore Trail owners decide to review their property records. - The earlier settlement suggests the corridor has already produced measurable payouts for some affected owners. - Rails-to-Trails cases often turn on old title documents, easements and how the original railroad rights were written.

What's next: - Property owners who think their land borders the Lakeshore Trail can attend one of the meetings or contact Stewart, Wald & Smith promptly. - The newly filed case will proceed in the U.S. Court of Federal Claims. - More claims may be added if eligible landowners come forward.

The bottom line: - Stewart, Wald & Smith is trying to expand compensation claims tied to the Lakeshore Trail conversion, with a new federal case and outreach meetings aimed at nearby property owners.