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Remedies Keyed to Tabb, 8th
People Express Airlines, Inc. v. Consolidated Rail Corp.
Citation:
495 A.2d 107 (1985)Facts
On July 22, 1981, ethylene oxide manufactured by BASF escaped from a tank car owned by Union Car and leased to BASF during a coupling operation in Conrail’s Port Newark freight yard. The chemical ignited, causing a fire. Defendants were allegedly aware of ethylene oxide’s volatile properties and had emergency response plans. Municipal authorities evacuated the area within a one-mile radius, including Newark International Airport’s North Terminal where People Express conducted its operations. The evacuation lasted twelve hours, during which People Express could not operate, resulting in cancelled flights, lost reservations, and continued fixed operating expenses. No physical damage to property or personal injury occurred. People Express sued for negligently-caused economic losses, and defendants moved for summary judgment arguing that purely economic losses unaccompanied by physical harm were not recoverable in tort.
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