Bay Colony R.R. Corp. v. Town of Yarmouth

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The town of Yarmouth entered into a transportation contract with the Bay Colony Railroad Corporation whereby Bay Colony was to transport solid waste from the town’s waste transfer station to a facility in Rochester. The town later notified Bay Colony that it would terminate Bay Colony’s lease of certain rail lines, which meant that Bay Colony would no longer be able to transport the town’s waste by rail. A provision in the contract provided that, in the event the lease of the rail line was terminated, the town would permit Bay Colony to continue to transport the waste by “other modes of transportation.” Bay Colony notified the town that it would continue to transport waste by truck rather than rail. The town, however, began transporting its waste with the railroad operating company that was awarded the rail lease. A jury found that the town had committed a breach of the contract. The Supreme Judicial Court affirmed, holding (1) the town’s affirmative defense that it was barred by Mass. Gen. Laws ch. 160, 70A from allowing Bay Colony to transport its waste by truck failed as a matter of law; (2) a permit issued to the town by the Department of Environmental Protection did not render Bay Colony legally unable to perform the contract after it lost its rail lease; and (3) the contract remained in effect at the time of the town’s breach. View "Bay Colony R.R. Corp. v. Town of Yarmouth" on Justia Law