Massachusetts Highway Department v. Smith

In conjunction with a taking by the Massachusetts Highway Department (MHD) of property belonging to the *615defendant (trust) for the construction of the Central Artery/ Tunnel project in East Boston, the parties entered into an agreement containing an indemnification clause. Under the agreement, the trust3 was to indemnify MHD for all costs and liability “arising by reason of” the release of oil; the bringing of oil; or the use, generation, or disposal of oil on the property during the trust’s ownership of the property. When the trust refused to indemnify MHD for certain costs and liability…