My father's layout uses 9 different sections, with 3 controllers able to control a train anywhere. This is all done with simple SPDT switches, no rotary ones involved. Each control panel has a switch for each section, and each section has an order of priority for each controller (for example controller 3 can only control section 1 if neither of the other controllers has it). This works very well in practise - I can supply more details on the wiring plan if wanted...
Mike D
Mike D