Indiana Harbor Belt Railroad Co. v. American Cyanamid Co.

1990

Venue: Ct. App. 7th Cir.

Facts: A tank car of acrylonitrile spills 25% of its contents. This costs the RR Co $981K to clean up-- there were evacuations, and it's toxic and explody.

Posture: Summary judgment for plaintiff. A procedural thicket of cross-appeals.

Issue: Should the shipper of a hazardous chemical by rail be strictly liable for the consequences of a spill en route?

Holding: No. Reversed.

Rule: For strict liability, here are some prongs:
  1. The probability of harm must be great
  2. The harm that would ensue if the risk came true could be great
  3. Due care in the activity can't prevent such harm
  4. The activity isn't a matter of common usage
  5. The activity is inappropriate for the place where it happened
  6. The value of the activity to the community doesn't offset the risk

Reasoning: This case isn't like the prongs. The accident could have been prevented with due care. There aren't really feasible other locations for it. This is a matter of common usage, and there is utility to the community (finding otherwise would impose burdens on many other substances).

Dicta: "Expected accident cost:" loss expectancy discounted by probability. This is posner, by the way.