KINGSTON – A decision by
State Supreme Court Justice Richard Mott upheld the enforceability of
Ulster County’s notice of default of the lease against Catskill
Mountain Railroad.
The county had stated that default was based on the group’s failure to rehabilitate and maintain track, to properly calculate rent payments, and to keep full and proper records of its gross revenue. The judge also denied Catskill Mountain Railroad’s motion for summary judgment regarding its failure to obtain owner liability protection insurance coverage.
Judge Mott found the railroad group “conceded the breach of its obligations to rehabilitate track and to maintain to Class 1 standard and to maintain the track free of brush and debris.”
The court’s ruling also rejected Catskill Mountain Railroad’s
attempt to impose on the county an obligation to repair track supporting
structures, to help the group obtain federal funds, including FEMA money,
or to help it secure other grants.
In his decision, Judge Mott dismissed the railroad group’s claim that the county breached an implied duty of good faith and fair dealing under the lease.
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