Port Authority Of New York & New Jersey v. Arcadian Corp.

189 F.3d 305 (3rd Cir. 1999)

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Nature of the Case

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Facts

P is the owner of the World Trade Center in New York City. On February 26, 1993, a bomb, fabricated by terrorists out of ammonium nitrate, urea, and nitric acid, exploded in an underground parking garage at the World Trade Center, causing six deaths, many injuries and massive property damage. The ammonium nitrate, urea, and nitric acid used in the bomb were allegedly sold in New Jersey, and the bomb was allegedly assembled in New Jersey by New Jersey residents. Ds are alleged to have manufactured, designed, marketed, distributed and/or sold the ammonium nitrate or urea used by the terrorists. The ammonium nitrate prills can be rendered explosive by the addition of fuel oil or other sensitizing substances; the urea prills can be rendered explosive by the addition of nitric acid and water (forming urea nitrate). The terrorists are alleged to have rendered the prills explosive by adding these substances. The prills are not explosive in and of themselves. P alleges that Ds had the means to reduce the danger of their products. Ps sued Ds for negligence, strict liability, and that Ds 'failed to provide guidelines, instructions, and/or warnings to their distributors, retailers, dealers or other suppliers to confirm that buyers in the general and unrestricted public market have legitimate and lawful purposes for use of Ds' products.' Ds filed a Motion to Dismiss pursuant to Fed. R. Civ. P. 12(b)(6). The motion was granted, and the Complaint was dismissed with prejudice. Because the District Court found as a matter of law that there was no duty and no proximate causation, there was nothing for a jury to consider. P appealed.