Contractually entitled to charge the higher rate

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Reference no: EM132223819

The court held that the railroad was contractually entitled to charge the higher rate. The railroad's failure to immediately invoke its right to the higher rate did not waive the right, there was no detrimental reliance by the utility on the lack of prompt notice, and the utility enjoyed the benefit of the lower rate to which it was not contractually entitled. Further, the railroad's duty of good faith did not include a duty to explore the possibility of re-configuring its operations and obtaining railcars optimized to carry other shippers' commodities.

Reference no: EM132223819

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