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People Express Airlines, Inc. v. Consolidated Rail Corp.
Citation:
100 N.J. 246, 495 A.2d 107 (1985)Facts
BASF Wyandotte Company (BASF) manufactured ethylene oxide that was transported in railway cars. Due to a rail yard accident at Consolidated Railway Corp. (Conrail), ethylene oxide escaped from one of the cars and ignited into a chemical fire. Due to the extreme flammability of ethylene oxide and possibility of an expolosion, a one-mile radius around the facility was evacuated for twelve hours, including the North terminal at the Newark airport. People Express Airways (People Express), a business operated out of the North terminal at the Newark airport, was forced to close down operations for that twelve-hour period.
People Express sued BASF and Conrail for economic losses, claiming that their negligent acts were the cause of its economic injury. The trial court granted summary judgment for the defendants on grounds that one is not liable for negligent acts that merely cause economic harm. The plaintiffs appealed and the Court of Appeals reversed. The defendants appealed.
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