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  • People Express Airlines, Inc. v. Consolidate…People Express Airlines, Inc. v. Consolidated Rail Corp.
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People Express Airlines, Inc. v. Consolidated Rail Corp.

New Jersey Supreme Court
495 A.2d 107 (1985)



People Express Airlines, Inc. (People Express) (plaintiff) is a commercial airline that conducts business out of the North Terminal at Newark International Airport. On July 22, 1981, ethylene oxide, a hazardous chemical, leaked out of a tank car operated by Consolidated Rail Corp. (Consolidated) (defendant). The chemical started a fire in the North Terminal and prevented People Express from using the premises for twelve hours. People Express suffered no physical or property damage from the fire, but its business operations were delayed, resulting in economic losses. People Express brought suit against Consolidated for interference with prospective advantage. The trial court granted Consolidated summary judgment, holding that economic loss wasn't recoverable absent property damage or personal injury. The Appellate Division reversed, and the New Jersey Supreme Court granted Consolidated's petition for appeal.

Rule of Law


Holding and Reasoning (Handler, J.)

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