PORT AUTHORITY OF NY AND NJ v. Arcadian Corp.

991 F. Supp. 390, 1997 U.S. Dist. LEXIS 22499
CourtDistrict Court, D. New Jersey
DecidedDecember 19, 1997
Docket96-CIV. 1635(WGB)
StatusPublished
Cited by11 cases

This text of 991 F. Supp. 390 (PORT AUTHORITY OF NY AND NJ v. Arcadian Corp.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PORT AUTHORITY OF NY AND NJ v. Arcadian Corp., 991 F. Supp. 390, 1997 U.S. Dist. LEXIS 22499 (D.N.J. 1997).

Opinion

OPINION

BASSLER, District Judge.

On February 26,1993, terrorists detonated an explosive device (the “Device”) under the World Trade Center, killing six, injuring many, and causing massive property damage. Alleging that the terrorists used Defendants’ fertilizer products to construct the Device, Plaintiff Port Authority of New York and New Jersey, the owner of the World Trade Center, seeks to recover damages from Defendants on theories of negligence and products liability.

Defendants now move to dismiss for failure to state a claim pursuant to Fed.R.Civ.P. 12(b)(6). The Court’s jurisdiction is pursuant to 28 U.S.C. § 1332 (diversity). For the following reasons, the Court grants Defendants’ motion.

I. BACKGROUND

A. The Parties

1. Plaintiff

Plaintiff is a body corporate and politic created and regulated by agreement between New York and New Jersey. (Amended Complaint ¶ Í.)

2. Defendant Arcadian Corporation (“Arcadian”)

Arcadian is incorporated in Delaware, with its principal place of business in Memphis, *396 Tennessee. (Id. ¶2.) Plaintiff alleges that Arcadian is in ■ the business of designing, manufacturing, marketing, distributing, and/or selling nitrogen chemicals and fertilizers, including urea prills 1 that are used as fertilizer.. (Id.) Arcadian allegedly designed, manufactured, marketed, distributed, and/or sold the urea prills used by the terrorists to construct the Device. (Id. ¶ 17.)

3. Defendant Dyno Nobel, Inc., f/k/a Ireco, Inc. (“Dyno”)

Dyno’s state of incorporation is Delaware and its principal place of business is Salt Lake City, Utah. (Id. ¶4.) Plaintiff alleges that Dyno is engaged in the business of designing, manufacturing, marketing, distributing, and/or selling ammonium nitrate slurry and nitroglycerin-based explosives, as well as agricultural chemicals and fertilizers, including ammonium nitrate prills used as fertilizer. (Id.) Dyno allegedly designed, manufactured, marketed, distributed, and/or sold the ammonium nitrate allegédly used by the terrorists to construct the Device. (Id.)

4. Defendant Hydro Agri North America, Inc. (“HANA”)

HANA is incorporated in the state of Florida, with its principal place of business in Tampa, Florida. (Id. If 5.) Plaintiff alleges that HANA’s business is the designing, manufacturing, marketing, distributing, and/or selling of agricultural chemicals and fertilizers, including ammonium nitrate prills used as fertilizer. (Id.) Hanna allegedly manufactured, designed, marketed, distributed, and/or sold the ammonium nitrate used to construct the Device. (Id.)

B. The Construction of the Device

In order to construct the Device, the terrorists allegedly purchased Defendants’ ammonium nitrate and urea. (Id. ¶ 24, 27.) The terrorists purchased these products in New Jersey. (Id. ¶ 18.) The terrorists allegedly purchased these products in prill form for use as fertilizer. (Id. ¶¶2, 4, 5, 23, 26.) Plaintiff alleges that Defendants’ products were rendered explosive by mixing them with other substances such as fuel oil, “sensitizing substances,” water, and/or nitric acid. (Id. ¶¶ 22, 23, 26.) The terrorists allegedly added fuel oil or other sensitizing substances to the ammonium nitrate, (id. ¶ 23,) and nitric acid and water to the urea. (Id. ¶ 26.) Notably, Plaintiff never alleges that Defendants’ products were explosivé in and of themselves without alteration or combination with these other substances.

Plaintiff alleges that the assembly of the Device then occurred in New Jersey by New Jersey residents. (Id. ¶¶ 19-20.) After the required assembly, the terrorists allegedly transported the Device from New Jersey to the World Trade Center using a vehicle rented in New Jersey. (Id. ¶ 21.)

Plaintiff also alleges that Defendants knew or should have known of the explosive capability of their products. (Id. ¶¶25, 28). Plaintiff asserts that two infamous explosions occurred in the United States involving fertilizer. Fifty years ago, two ships, the S.S. Grandcamp and the S.S. High Flyer, are alleged to have been destroyed while docked at Texas City, Texas by explosions when fire spread to their ammonium nitrate cargoes. (Id. ¶ 39.) In addition to the loss of the two ships, 468 people died in that tragic event. (Id.)

The second incident occurring in this country was an alleged act of terrorism involving the use of a fertilizer bomb. In 1970, anti-Vietnam War protesters used ammonium nitrate" to bomb the Mathematics Research Building at the University of Wisconsin. (Id. ¶ 40.) The explosion caused deaths, injuries, and property damage.

Plaintiff alleges that in response to the University of Wisconsin bombing, several states introduced legislation that would have required ammonium fertilizers to be desensitized to reduce if not eliminate the risk that the fertilizer could be turned into an explosive. (Id. ¶ 41.) Plaintiff alleges that this legislation received substantial publicity without and within the fertilizer industry. (Id.) After alleged resistance by various fer *397 tilizer manufacturers, however, the legislation failed. (Id.)

Plaintiff also alleges that the use of fertilizer as an explosive was not simply a national problem, but an international one. In the early 1970s, Plaintiff alleges that there were terrorist bombings in Northern Ireland and the Republic of Ireland involving devices made from fertilizer. ■ (Id. ¶ 46.) Additionally, explosives made from nitrated urea prills were allegedly used by terrorists in the Middle East, South America, and Pakistan. Finally, the Shining Path terrorists allegedly extensively used ammonium nitrate fertilizer prills in explosive charges. (Id. ¶¶ 54-56.)

Plaintiff alleges that the widespread use of ammonium nitrate and urea in international terrorism has led to its regulation and ban elsewhere. (Id. ¶¶ 45,46, 56.) As a result of the use of fertilizer bombs in Northern Ireland and the Republic of Ireland, those countries allegedly limited the amount of nitrate that could be used in fertilizer products and required the addition of calcium, sulfates, and other substances to reduce their detona-bility. (Id. ¶ 46.) As a result of the Shining Path terrorists’ activities, Peru is alleged to have imposed an outright ban on the sale of urea and ammonium nitrate fertilizers in 1992.

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991 F. Supp. 390, 1997 U.S. Dist. LEXIS 22499, Counsel Stack Legal Research, https://law.counselstack.com/opinion/port-authority-of-ny-and-nj-v-arcadian-corp-njd-1997.