In a unanimous ruling published Jan. 7, a three-judge panel in California’s First Appellate District overturned a lower court decision that had blocked Mendocino Railway from using eminent domain to acquire a 20-acre undeveloped property near Willits. The parcel is seen as critical to expanding rail operations between Willits and Fort Bragg.

The landowner, John Meyer, has opposed selling the property and plans to appeal the ruling to the California Supreme Court, according to his attorney. The case has been closely watched because it hinges on whether Mendocino Railway qualifies as a public utility—a requirement for exercising eminent domain.

A trial court previously ruled that the company functioned primarily as a tourism business, centered on scenic Skunk Train excursions, and therefore did not serve a sufficient public purpose. The appellate court disagreed, finding that public utility status depends on whether services are offered to the public, not how much revenue comes from tourism.

authorize the third-party, or “adverse,” abandonment of an approximately 40-mile stub-ended rail line