People Express Airlines, Inc. v. Consolidated Rail Corporation

495 A.2d 107 (1985)

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Nature of the Case

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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. Losses 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.