Boston and Maine Corporation v. Massachusetts Bay Transportation Authority

Environmental Cleanup decision in B&M v. MBTA

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B&M owned and operated the MBTA Commuter Rail Maintenance Facility, selling it to the MBTA in 1976. B&M continued to operate the facility under bankruptcy protection until 1983 when B&M was discharged from bankruptcy. The discharge stating that B&M was free and clear of all claims.

Also in 1983, Massachusetts enacted 21E, its environmental clean-up law.

In 2004, 21 years after B&M was discharged from bankruptcy, the MBTA brought an environmental cleanup claim against B&M for the environmental contamination that occurred during its ownership.

The District Court had ruled in favor of the MBTA. The First Circuit ruled in favor of B&M, so B&M is entitled to an order enjoining the MBTA from pursuing claims for investigation or remediation costs for contamination at the Facility occurring before June 30, 1983.

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Published In: Bankruptcy Updates, Environmental Updates, Residential Real Estate Updates

Reference Info:Decision | Federal, 1st Circuit, Massachusetts | United States