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

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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