The railroad delivered coal to the utility

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The contract provided that, after the railroad delivered coal to the utility, if the railroad was prevented by force majeure from reloading its empty cars with iron ore for a specified steel mill, the railroad could charge a higher rate applicable to shipments with no backhauling. The steel mill shut down and eventually closed for good, at which point the railroad began charging the higher rate. The utility contended that the railroad waived its right to the higher rate by not exercising the right when the steel mill first shut down, and that the railroad did not make a good faith effort to obtain backhauling of other commodities.

Reference no: EM132223766

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