In 1998, the governor of New York, George Pataki, formulated a $185 million plan to update...

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In 1998, the governor of New York, George Pataki,formulated a $185 million plan to update old Amtrak trains. Thepurpose of such a project was to make the old trains faster thanthe more current Amtrak trains. Such a reconstruction would allowfor a high speed rail system between Albany and New York City.Unfortunately, Amtrak produced only one train, and though millionsof dollars poured into the company to fund the project, auditingshowed that the company showed little spending on the trains.Problems stemmed in part from the lack of engineering expertise ofthe Steel company that was picked to work on the trains. Also, thestate’s Department of Transportation was not experienced in overseeing projects of this type, so little oversight was given toAmtrak. Furthermore, unforeseen problems arose such as aircondition malfunctions and the removal of asbestos from traincabins. After the plan seemed as though it would never besuccessful and Amtrak was extremely low on money due to normaloperations, the company tried to settle with the state to escapethe project. However, the state filed a lawsuit against Amtrak.Amtrak’s defense was that both parties made a unilateral mistakebecause neither party foresaw the problems or extra costsassociated with the project that made it unrealistic. How do youthink the court decided?

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The court will be surely acknowledge the mistake at the part of Amtrak but will surely not penalize it with hefty fines or disbarment as the Department of Transport had not maintained the clarity regarding the    See Answer
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