PEOPLE EXPRESS AIRLINES, INC. V. CONSOLIDATED RAIL CORPORATION
495 A.2d 107 (1985)
NATURE OF THE CASE: Consolidated (D) appealed an order which reversed a grant of summary
judgment in favor of D where People (P) alleged D's negligent conduct resulted in economic
losses unaccompanied by property damage or personal injury.
FACTS: A tank car was punctured during a 'coupling' operation which ignited in the
freight yard of Consolidated Rail Corporation (D). Consequently, the evacuation area
included the North Terminal building of the Newark International Airport, where People's
Express Airline's (P) was based. P's employees were prohibited from using the terminal for
twelve hours. P contends that it suffered business-interruption losses as a result of the
evacuation. Loses were incurred from canceled scheduled flights, lost reservations, and
certain fixed operating expenses. No physical damage and no personal injury to P resulted
from the fire. The trial court granted summary judgment for D. The Appellate Division
reversed. This question is certified for consideration by the Supreme Court.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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