Sunday, March 24, 2013

People Express Airlines, Inc. v. Consolidated Rail Corp. case brief

People Express Airlines, Inc. v. Consolidated Rail Corp. case brief summary
100 N.J. 246, 495 A.2d 108 (1985)

SYNOPSIS: Defendants appealed the order of the Superior Court, Appellate Division (New Jersey) which reversed a grant of summary judgment in favor of defendant railroad where plaintiff alleged defendants' negligent conduct resulted in economic losses unaccompanied by property damage or personal injury.

OVERVIEW: Plaintiff's airline business was evacuated for 12 hours because of a fire allegedly resulting from defendants' negligence. Plaintiff claimed damages for economic losses resulting from the evacuation.

The court affirmed the lower court's reversal of summary judgment, holding that a defendant who has breached defendant's duty of care to avoid the risk of economic injury to particularly foreseeable plaintiffs may be held liable for actual economic losses that are proximately caused by defendant's breach of duty.

-The court specifically rejected the holding and principle that economic losses were not recoverable in tort absent property damage or personal injury. The court indicated the recovery of economic damages was well-grounded in traditional tort principles and flowed from well-established exceptional cases that were philosophically compatible with this decision.

OUTCOME: The court modified and affirmed, holding that a defendant's negligent conduct that interferes with a plaintiff's business resulting in purely economic losses, unaccompanied by property damage or personal injury, is compensable in tort; the case was remanded for proceedings consistent with the court's opinion.

Interested in learning how to get the top grades in your law school classes? Want to learn how to study smarter than your competition? Interested in transferring to a high ranked school?


No comments:

Post a Comment

The Evolution of Legal Marketing: From Billboards to Digital Leads Over the last couple of decades, the face of legal marketing has changed a l...