National Steel Service Center, Inc. v. Gibbons

319 N.W.2d 269, 31 A.L.R. 4th 650, 1982 Iowa Sup. LEXIS 1389
CourtSupreme Court of Iowa
DecidedMay 19, 1982
Docket66801
StatusPublished
Cited by12 cases

This text of 319 N.W.2d 269 (National Steel Service Center, Inc. v. Gibbons) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Steel Service Center, Inc. v. Gibbons, 319 N.W.2d 269, 31 A.L.R. 4th 650, 1982 Iowa Sup. LEXIS 1389 (iowa 1982).

Opinions

McCORMICK, Justice.

The United States Court of Appeals for the Eighth Circuit has certified the following question to us: “Does the theory of strict liability for abnormally dangerous activities apply to a common carrier under the circumstances of this case?” We answer the question affirmatively.

The court of appeals recited the facts it deemed relevant to the certified question:

This is a civil action brought by National Steel Service Center, Inc., (National Steel) against William Gibbons, the bankruptcy trustee of the Chicago, Rock Island and Pacific Railroad Company (Rock Island) for damages resulting from a train accident on September 1, 1975. On that date, the Rock Island operated a train along its right-of-way which consisted in part of eleven tank cars loaded with propane gas. The train derailed and four tank cars exploded, resulting in extensive damage to a warehouse owned by National Steel. National Steel sought recovery under theories of res ipsa loquitur, specific negligence, and strict liability.
At trial, the jury ruled in favor of the defendant on the res ipsa loquitur claim. The district court directed a verdict for the defendant on the specific negligence theory. The court entered a directed verdict for the plaintiff on the strict liability claim. In a special interrogatory, the jury found that National Steel suffered $443,623 in damages as a result of the explosion, and judgment was entered accordingly.

[270]*270The certification was in response to a motion by the Rock Island asking the court of appeals to certify to this court the question of whether the theory of strict liability was properly applied in the federal action.

The parties agree that this court has previously adopted the doctrine of strict liability for abnormally dangerous activities in blasting cases. The leading case is Watson v. Mississippi River Power Company, 174 Iowa 23, 156 N.W. 188 (1916). The court’s adherence to the doctrine has been mentioned in other cases. See Davis v. L. & W. Construction Company, 176 N.W.2d 223, 224 — 25 (Iowa 1970); Lubin v. Iowa City, 257 Iowa 383, 389, 131 N.W.2d 765, 769 (1964); Monroe v. Razor Construction Co., 252 Iowa 1249, 1251-52, 110 N.W.2d 250, 252 (1961); Pumphrey v. J. A. Jones. Construction Company, 250 Iowa 559, 561, 94 N.W.2d 737, 738 (1959). In Davis, the court said the rule is that “if one engages in an activity on his own land of such hazardous nature as to involve risk of harm to the person, land or chattels of neighboring parties, he is liable for the consequences proximately resulting therefrom without regard to degree of care, scientific manner in done, purpose or motive.” 176 N.W .2d at 225. The doctrine stems from the famous English case of Rylands v. Fletcher, 3 H. & C. 774 (1865), rev’d L.R. 1 Ex. 265 (1866), aff’d L.R. 3 H.L. 330 (1868). See Lubin, 257 Iowa at 386-90, 131 N.W.2d at 768; W. Prosser, The Law of Torts § 78 (4th ed. 1971).

The doctrine is incorporated in Restatement (Second) of Torts § 519 (1977):

(1) One who carries on an abnormally dangerous activity is subject to liability for harm to the person, land or chattels of another resulting from the activity, although he has exercised the utmost care to prevent the harm.
(2) This strict liability is limited to the kind of harm, the possibility of which makes the activity abnormally dangerous.

The reason for the rule is explained in Comment d:

The liability arises out of the abnormal danger of the activity itself, and the risk that it creates, of harm to those in the vicinity. It is founded upon a policy of the law that imposes upon anyone who for his own purposes creates an abnormal risk of harm to his neighbors, the responsibility of relieving against that harm when it does in fact occur. The defendant’s enterprise, in other words, is required to pay its way by compensating for the harm it causes, because of its special, abnormal and dangerous character.

Factors for determining whether an activity is abnormally dangerous are delineated in § 520.

Rock Island appears to concede that the strict liability doctrine would apply in this case if it were not a common carrier. It does not deny, for example, that transporting liquified propane gas is an abnormally dangerous activity within the strict liability rule. Therefore we pass that issue. We note, however, that transporting gasoline has been recognized as uniquely hazardous. See Siegler v. Kuhlman, 81 Wash.2d 448, 454, 502 P.2d 1181,1184 (1972), cert, denied, 411 U.S. 983, 93 S.Ct. 2275, 36 L.Ed.2d 959 (1973). The explosive propensity of propane gas has also been demonstrated. See Farmers Butane Gas Co. v. Walker, 489 S.W.2d 949, 951-52 (Tex.Civ.App.1973).

The determinative issue presented by the certified question is whether this court will adopt the common carrier exception to the strict liability rule. In making that choice we are confronted with two lines of authority.

One line holds that a common carrier that is required to carry abnormally dangerous cargo offered to it for carriage should not be held strictly liable. The leading case for this view is Actiesselskabet Ingrid v. Central Railroad Co., 216 F. 72 (2nd Cir.), cert. denied, 238 U.S. 615, 35 S.Ct. 284, 59 L.Ed. 1490 (1914):

We think there can be no doubt, so far as a common carrier is concerned, that such danger as necessarily results .to others from the performance of its duty, without negligence, must be borne by them as an unavoidable incident of the lawful per-[271]*271formanee of legitimate business .... It certainly would be an extraordinary doctrine for courts of justice to promulgate to say that a common carrier is under legal obligation to transport dynamite and is an insurer against any damage which may result in the course of transportation, even though it has been guilty of no negligence which occasioned the explosion which caused the injury. It is impossible to find any adequate reason for such a principle.

Id. at 78; see Town of East Troy v. Soo Line Railroad Co., 409 F.Supp. 326 (E.D. Wis.1976); Christ Church Parish v. Cadet Chemical Corp., 25 Conn.Supp. 191,199 A.2d 707 (1964); Pope v. Edward M. Rude Carrier Corp., 138 W.Va. 218, 75 S.E.2d 584 (1953).

The second line of authority, shorter but more recent, does not recognize the common carrier exception. The leading case for this view is Chavez v. Southern Pacific Transportation Co., 413 F.Supp. 1203 (E.D.Cal.

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319 N.W.2d 269, 31 A.L.R. 4th 650, 1982 Iowa Sup. LEXIS 1389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-steel-service-center-inc-v-gibbons-iowa-1982.