A legal battle has erupted over alleged environmental negligence, as two prominent railway companies accuse a major real estate developer of causing significant damage to their property. On January 30, 2026, Norfolk Southern Railway Company and North Carolina Railroad Company filed a complaint in the United States District Court for the Middle District of North Carolina against D.R. Horton, Inc. and SFTEN, LLC.
The plaintiffs allege that the defendants’ construction activities at the Collins Ridge development in Hillsborough, Orange County, North Carolina have led to severe stormwater management issues that threaten the integrity of critical rail infrastructure. According to the complaint, D.R. Horton and SFTEN began construction on Collins Ridge in 2019, transforming a once-wooded area into a sprawling residential subdivision covering approximately 100 acres with plans for up to 950 dwellings. The railway companies claim that this development has drastically altered natural drainage patterns due to extensive land-clearing and grading operations which removed permeable surfaces like trees and vegetation.
Norfolk Southern Railway Company (NS) operates freight rail service over a corridor owned by North Carolina Railroad Company (NCRR), which runs adjacent to Collins Ridge. The plaintiffs argue that the defendants installed inadequate stormwater controls during construction, including a retention pond that collects runoff from both completed and active construction areas. This pond allegedly discharges turbid water directly towards the rail corridor, leading to repeated flooding events that compromise the stability of railroad ballast and track structures.
The plaintiffs contend that these actions constitute negligence under North Carolina’s reasonable use doctrine, which prohibits unreasonable interference with surface water flow causing harm to neighboring properties. They also accuse D.R. Horton and SFTEN of trespass for allowing water and sediment from Collins Ridge to invade their property without consent, as well as creating a private nuisance by interfering with their use and enjoyment of the rail corridor.
As a result of these alleged violations, Norfolk Southern Railway Company was forced to undertake emergency repairs following a washout caused by runoff from Collins Ridge during heavy rainfall in July 2025. The plaintiffs seek compensatory damages exceeding $75,000 for costs incurred due to emergency response efforts such as installing pumps and culverts along with inspection expenses related to repairing damaged tracks. Additionally they request injunctive relief requiring defendants implement effective long-term solutions addressing excess stormwater runoff preventing further harm or operational disruptions affecting interstate commerce through this vital transportation route.
Representing Norfolk Southern Railway Company are attorneys William W Stewart Jr., Ethan W Carpenter from Gordon Stewart Spradlin PLLC while Joseph A Ponzi represents North Carolina Railroad Company via Brooks Pierce McLendon Humphrey & Leonard LLP before Judge overseeing Case ID:1:26-CV-110
Source: 126cv00110_Norfolk_Southern_Railway_Company_v_DR_Horton_Inc_Complaint_Middle_District_North_Carolina.pdf
