Parochial Bus Systems, Inc. v. Board of Education
Parochial Bus Systems, Inc. (Parochial) contracted with the Board of Education of the City of New York (Board) to transport students. During a wildcat strike, Parochial ceased services, citing safety concerns due to violence and picketing. The Board, however, maintained that Parochial could have provided service with police protection and found alternative transportation. Parochial sought payment under a "Cessation of Service" clause, which the Board denied, also raising an affirmative defense regarding non-compliance with Education Law § 3813. The Special Term initially dismissed the defense and denied summary judgment, but the appellate court modified this, finding that Parochial did not substantially comply with its contractual obligations to "attempt" service, despite police protection offers. Ultimately, the court granted the Board's motion, dismissing both Parochial's and co-plaintiff Local 100's complaints.