Union Pacific Railroad's long-term coal-hauling contract with electric utility WEPCO provided that if the railroad is prevented

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Union Pacific Railroad's long-term coal-hauling contract with electric utility WEPCO provided that if the railroad is prevented by "an event of Force Majeure" from reloading empty coal cars (after it has delivered coal to WEPCO) with iron ore destined for Geneva, Utah, it can charge the higher rate that the contract makes applicable to shipments that do not involve backhauling. The iron ore that the railroad's freight trains would have picked up in Minnesota was intended for a steel mill in Utah. The steel company was bankrupt in 1999 when the parties signed the contract. In November 2001 the steel mill shut down and closed for good in February 2004. Thereafter, the railroad wrote WEPCO to declare "an event of Force Majeure," and that henceforth it would be charging WEPCO the higher rate applicable to shipments without a backhaul. WEPCO sued the railroad for breach of the force majeure provision in the contract, contending that the railroad waited over two plus years to increase rates. The railroad contends that the clause should be interpreted as written. Decide. [Wisconsin Electric Power Co. v. Union Pacific Railroad Co., 557 F.3d 504 (7th Cir.)]
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Andersons Business Law and the Legal Environment

ISBN: 978-1305575080

23rd edition

Authors: David P. Twomey, Marianne M. Jennings, Stephanie M Greene

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