A system and method is disclosed in which circuitry of a first controller of a first node on a first path within a transport network receives a first signal indicating a failure within the first path from a second controller. The first node is an end node of the first path. A first client signal failure clear signal is received from a second node upstream of the first node on the first path. The first client signal failure clear signal indicates that a non-restorable fault has been resolved such that the first path can be considered for carrying data traffic. The non-restorable fault is a failure at the source. Subsequent to receiving the first signal indicating the failure within the first path, a backward defect indication clear signal is transmitted to the second node, the backward defect indication clear signal indicating an absence of a failure in the first path.