9th Circ. Told Wash. Port's Tax Claim Against Rail Co. Bogus

Law360 (July 14, 2020, 2:31 PM EDT) -- A Washington state-based port improperly threatened a $1 million tax assessment against a rail company in a dispute over a breach of a maintenance contract, the company told the Ninth Circuit, urging it to reverse a lower court's dismissal.

The Port of Benton, which contracted Tri-City Railroad Co. LLC to conduct maintenance on certain railways, threatened to impose a tax levy of more than $1 million unless the rail company terminated its contract with the local port, the company claimed. That issue, as well as others in the case involving disputes over issues of material fact, were properly argued under the...

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