Pan Am Loses Indemnity Claims In $8M Tar Spat

Law360, New York (August 26, 2010, 5:12 PM EDT) -- A federal judge has tossed the bulk of Pan Am Railways Inc.'s third-party allegations against the city of Bangor, Maine, in a $7.6 million tar cleanup feud, adopting the recommendation of a magistrate judge who said an indemnity agreement between the parties was void.

Magistrate Judge Margaret J. Kravchuk was right to find that Bangor's signed promise to cover the railroad company for underlying indemnity claims from Frontier Communications Corp. never took effect because the Bangor City Council never ratified it, Judge George Z. Singal ruled...
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