Gaines-Tabb v. ICI Explosives, USA, Inc.

160 F.3d 613, 1998 Colo. J. C.A.R. 6258, 1998 U.S. App. LEXIS 28228, 1998 WL 778298
CourtCourt of Appeals for the Tenth Circuit
DecidedNovember 9, 1998
Docket96-6410
StatusPublished
Cited by143 cases

This text of 160 F.3d 613 (Gaines-Tabb v. ICI Explosives, USA, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gaines-Tabb v. ICI Explosives, USA, Inc., 160 F.3d 613, 1998 Colo. J. C.A.R. 6258, 1998 U.S. App. LEXIS 28228, 1998 WL 778298 (10th Cir. 1998).

Opinion

EBEL, Circuit Judge.

Individuals injured by the April 19, 1995, bombing of the Alfred P. Murrah Federal Building (“Murrah Building”) in Oklahoma City, Oklahoma, filed suit against the manufacturers of the ammonium nitrate allegedly used to create the bomb. The plaintiffs’ complaint set forth theories of negligence, negligence per se, negligent entrustment, negligent infliction of emotional distress, intentional infliction of emotional distress, manufacturers’ products liability, ultrahazar-dous or abnormally dangerous activity, and fraud and deceit. The district court dismissed the complaint for failure to state a claim upon which relief may be granted, and the plaintiffs appealed. We affirm.

Specifically, we hold that: plaintiffs cannot state a claim for negligence or negligence per se because they cannot show, as a matter of law, that defendants’ conduct was the proximate cause of their injuries; they cannot state a claim for negligence per se under one of the state statutes at issue because ammonium nitrate is not an “explosive” covered by the statute; they cannot state a claim for manufacturers’ products liability because there is no adequate allegation that the product at issue was unreasonably dangerous due either to a defective design or a failure to warn; and their remaining claims are waived for failure to argue them on appeal.

*619 BACKGROUND

On April 19, 1995, a massive bomb exploded in Oklahoma City and destroyed the Mur-rah Building, causing the deaths of 168 people and injuries to hundreds of others. On May 10, 1995, plaintiffs filed this diversity action, on behalf of themselves and all persons who incurred personal injuries during, or may claim loss of consortium or wrongful death resulting from, the bombing, against ICI Explosives (“ICI”), ICI’s parent company, Imperial Chemical Industries, PLC, and another of Imperial Chemical’s subsidiaries, ICI Canada. 1

ICI manufactures ammonium nitrate (“AN”). Plaintiffs allege that AN can be either “explosive grade” or “fertilizer grade.” According to plaintiffs, “explosive-grade” AN is of low density and high porosity so it will absorb sufficient amounts of fuel or diesel oil to allow detonation of the AN, while “fertilizer-grade” AN is of high density and low porosity and so is unable to absorb sufficient amounts of fuel or diesel oil to allow detonation.

Plaintiffs allege that ICI sold explosive-grade AN mislabeled as fertilizer-grade AN to Farmland Industries, who in turn sold it to Mid-Kansas Cooperative Association in McPherson, Kansas. Plaintiffs submit that a “Mike Havens” purchased a total of eighty 50-pound bags of the mislabeled AN from Mid-Kansas. According to plaintiffs, “Mike Havens” was an alias used either by Timothy McVeigh or Terry Nichols, the two men tried for the bombing. Plaintiffs further allege that the perpetrators of the Oklahoma City bombing used the 4000 pounds of explosive-grade AN purchased from Mid-Kansas, mixed with fuel oil or diesel oil, to demolish the Murrah Building.

Plaintiffs’ Third Amended Complaint presented theories of negligence, negligence per se, negligent entrustment, negligent infliction of emotional distress, intentional infliction of emotional distress, manufacturers’ products liability, strict liability for ultrahazardous or abnormally dangerous activity, and fraud and deceit. In an extensive opinion, the district court granted ICI’s motion to dismiss the complaint for failure to state a claim upon which relief could be granted. See Gaines-Tabb v. ICI Explosives USA, Inc., 995 F.Supp. 1304 (W.D.Okla. July 2, 1996). Imperial Chemical and ICI Canada subsequently moved to join ICI’s motion to dismiss. Plaintiffs did not oppose Imperial Chemi-eal/ICI Canada’s motion to join. The district court granted the motion and dismissed the action as to all defendants. Plaintiffs appeal.

ANALYSIS

We review de novo a Federal Rule of Civil Procedure 12(b)(6) dismissal for failure to state a claim upon which relief may be granted, accepting as true all the well-pleaded facts of the complaint and construing them in the light most favorable to the plaintiff. See Bauchman v. West High School, 132 F.3d 542, 550 (10th Cir.1997), cert. denied, — U.S. -, 118 S.Ct. 2370, 141 L.Ed.2d 738 (1998). We will uphold a Rule 12(b)(6) dismissal only if “it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957). Plaintiffs may not rely on arguments extending beyond the allegations of the complaint to overcome pleading deficiencies; rather, the “complaint itself’ must show that plaintiffs are entitled to relief. Bauchman, 132 F.3d at 550.

In a diversity case a federal court must apply the choice of law rules of the forum state. See Klaxon Co. v. Stentor Electric Mfg. Co., 313 U.S. 487, 496, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941). In torts cases, Oklahoma applies the “most significant relationship” test stated in § 145 of the Restatement (Second) of Conflict of Laws. See Beard v. Viene, 826 P.2d 990, 995 (Okla.1992); *620 Brickner v. Gooden, 525 P.2d 632, 637 (Okla.1974). Under this test, we conclude that Oklahoma courts would apply Oklahoma law to the claims in this case.

I. Negligence

Plaintiffs allege that ICI was negligent in making explosive-grade AN available to the perpetrators of the Murrah Building bombing. Under Oklahoma law, the three essential elements of a claim of negligence are: “(1) a duty owed by the defendant to protect the plaintiff from injury, (2) a failure to properly perform that duty, and (3) the plaintiffs injury being proximately caused by the defendant’s breach.” Lockhart v. Loosen, 943 P.2d 1074, 1079 (Okla.1997). The district court held that ICI did not have a duty to protect plaintiffs and that ICI’s actions or inactions were not the proximate cause of plaintiffs’ injuries. Although causation is generally a question of fact, “the question becomes an issue of law when there is no evidence from which a jury could reasonably find the required proximate, causal nexus between the careless act and the resulting injuries,” Henry v. Merck and Co., 877 F.2d 1489, 1495 (10th Cir.1989). Because we determine that there is a failure of causation as a matter of law, we need not discuss whether under Oklahoma law defendants owed plaintiffs a duty of care.

“[W]hether the complained of negligence is the proximate cause of the plaintiffs injury is dependent upon the harm (for which compensation is being sought) being the result of both the natural and probable consequences of the primary negligence.” Lockhart,

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Bluebook (online)
160 F.3d 613, 1998 Colo. J. C.A.R. 6258, 1998 U.S. App. LEXIS 28228, 1998 WL 778298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gaines-tabb-v-ici-explosives-usa-inc-ca10-1998.