Taylor-Edwards Warehouse & Transfer Co., of Spokane, Inc., a Washington Corporation v. Burlington Northern, Inc., a Foreign Corporation

This case concerns the interpretation to be given a provision in a lease that obligates Burlington Northern, the lessor, to “maintain, operate, and make available for use” by Taylor-Edwards, the lessee, a section of spur track adjoining the warehouse leased by Taylor-Edwards from Burlington Northern. The district court ruled that the lease does not require Burlington Northern to maintain access by rail from a main line to the warehouse, since maintaining access would require the railroad to reconstruct a bridge that has fallen into disrepair. We conclude that the lease requires Burlington Northern to provide rail access to the warehouse spur, and that Burlington Northern has presented no valid defense to the obligation. Accordingly, we reverse.

On February 29, 1956, Taylor-Edwards Warehouse & Transfer Co. of Spokane (Taylor-Edwards) agreed to lease a building owned by Great Northern Railway, Burlington Northern’s predecessor, for use as a warehouse. The lease covered a period of 20 years, and Taylor-Edwards was given an option to extend the lease for another 20 years. Drafted by the railroad, the lease agreement imposed numerous obligations and restrictions on Taylor-Edwards as…