Southern Pacific Transportation Co. v. United States

462 F. Supp. 1193, 1978 U.S. Dist. LEXIS 14141
District Court, E.D. California·Decided November 28, 1978·No. Civ. R-77-0180·Published·Cited by 18 cases

Opinion

OPINION

MacBRIDE, Chief Judge.

The question presently before this court is whether federal or state law provides the rule of decision governing the application of contributory or comparative negligence standards to this action under the Federal Tort Claims Act, 28 U.S.C. §§ 1346(b), 2671 et seq. The factual background in which the question arises can be stated briefly. On April 28,1973,18 DODX boxcars owned by the United States and laden with bombs being transported from Nevada to Port Chicago, California, by Southern Pacific Transportation Company (Southern Pacific) under contract with the Department of the Navy, exploded in the Antelope trainyard of Southern Pacific near Roseville, California. The explosions caused major damage to the trainyard and the surrounding area. As a result, Southern Pacific instituted this action under the Federal Tort Claims Act (FTCA) to recover, inter alia, for damage to the trainyard, railcars and lading in the railcars, loss of freight revenues, loss of use of Southern Pacific property and capital, and sums paid in settlement of third-party claims. All third-party suits arising from the explosions have been settled, so that the only claims remaining are the primary action by Southern Pacific for its damages and the counterclaim by the United States for loss of the boxcars and bombs.

The FTCA provides a statutory choice of law rule governing this action. Section 1346(b) provides:

the district courts . . . shall have exclusive jurisdiction of civil actions on claims against the United States, for money damages, ... for injury or loss of property, or personal injury or death caused by the negligent or wrong *1196 ful act or omission of any employee of the Government while acting within the scope of his office or employment, under circumstances where the United States, if a private person, would be liable to the claimant in accordance with the law of the place where the act or omission occurred.

28 U.S.C. § 1346(b). As the Supreme Court held in Richards v. United States, 369 U.S. 1, 82 S.Ct. 585, 7 L.Ed.2d 492 (1962), this section requires application of the whole law, including the choice of law rules, of the place where the act or omission occurred. In the usual case, the negligent act or omission and the resulting injury occur in a single state, and there is generally no dispute as to the applicable law. In this instance, however, negligent acts and omissions are alleged to have occurred in Nevada and California, and, to a significantly lesser extent, in other states, so that the selection of the state whose whole law is to apply is far more complicated. Superimposed on the selection of the applicable state law is the question whether federal law preempts some or all of the issues presented.

Section 2674 of the FTCA provides in part that the United States is to be liable “in the same manner and to the same extent as a private individual under like circumstances.” If federal law were deemed to preempt state law in the context of a suit between private parties arising from an explosion in a railcar, then the argument is that federal law should also preempt otherwise applicable state law in this instance in order that the directive of the Act, that the United States be liable in the same manner and to the same extent as a private person in like circumstances, may be fulfilled.

Southern Pacific contends that federal law preempts state law in this instance because, it states:

Numerous aspects of the Roseville interstate shipment were governed by federal interstate commerce statutes and regulations. The Interstate Commerce Act regulates, inter alia, the common carrier’s duty to furnish transportation and establish through routes (49 U.S.C. § 1(4)), the carrier’s duty to establish just and reasonable rates (49 U.S.C. § 1(5)), the carrier’s duty to make reasonable classifications of property for transportation with reference to which rates and tariffs may be prescribed (49 U.S.C. § 1(6)), the carrier’s duty to furnish car service (49 U.S.C. § 1(11)), its duty to establish rules and regulations for car service (49 U.S.C. § 1(13), (14)), and the carrier’s duty to refrain from discrimination in rates, interchange, and facilities (49 U.S.C. § 3). The Act prescribes the consequences of a carrier’s violating regulations (49 U.S.C. § 10) and provides that the Commission is empowered to determine the lawfulness of carrier’s rates and, on its own initiative, establish reasonable through routes and joint practices (49 U.S.C. § 15). The Act imposes liability on carriers for loss of freight and also prescribes limitations of liability (49 U.S.C. §§ 20(11), 101). The Act extensively regulates the form, content, terms, and conditions of bills of lading (49 U.S.C. §§ 81-124), . . . . Finally, the Act regulates safety appliances (49 U.S.C. § 26) and regulates the transportation of hazardous material (49 U.S.C. §§ 1801-1812). The regulations of the Interstate Commerce Commission and its offices regulate innumerable details of an interstate explosives shipment. The hazardous materials regulations (49 CFR §§ 102, 107, 170 et seq.) govern rulemaking procedures and petitions for . rulemaking, compliance orders and penalties, labeling, packaging, placarding, preparation of explosives for shipment, handling, loading, and inspection requirements.

Southern Pacific’s brief, filed September 18, 1978, at 7-8. Certain of the statutes and regulations described, along with other federal laws and regulations, undeniably governed significant aspects of the relationship between Southern Pacific as common carrier and the United States as shipper. 1 *1197 Southern Pacific contends that, since the rights and duties of the parties had a federal source, federal law must govern all phases of this litigation.

Free access — add to your briefcase to read the full text and ask questions with AI

Southern Pacific Transportation Co. v. United States, 462 F. Supp. 1193, 1978 U.S. Dist. LEXIS 14141 (E.D. Cal. 1978).

462 F. Supp. 1193 (Southern Pacific Transportation Co. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Zimmerman Ex Rel. Zimmerman v. United States
171 F. Supp. 2d 281 (S.D. New York, 2001)
Cheromiah v. United States
55 F. Supp. 2d 1295 (D. New Mexico, 1999)
Young v. United States
149 F.R.D. 199 (S.D. California, 1993)
Drucker v. O'Brien's Moving and Storage Inc.
745 F. Supp. 616 (D. Nevada, 1990)
Santini v. Consolidated Rail Corp.
505 N.E.2d 832 (Indiana Court of Appeals, 1987)
In Re" Agent Orange" Product Liability Litigation
580 F. Supp. 690 (E.D. New York, 1984)
Salvador Caban v. United States
728 F.2d 68 (Second Circuit, 1984)
National Steel Service Center v. Gibbons
693 F.2d 817 (Eighth Circuit, 1982)
Bilderback v. United States
558 F. Supp. 903 (D. Oregon, 1982)
Silkwood v. Kerr-Mcgee Corporation
667 F.2d 908 (Tenth Circuit, 1982)
Silkwood v. Kerr-McGee Corp.
667 F.2d 908 (Tenth Circuit, 1981)
Kenneth Richardson v. The United States of America
645 F.2d 731 (Ninth Circuit, 1981)
Moon v. United States
512 F. Supp. 140 (D. Nevada, 1981)
Southern Pacific Transportation Co. v. United States
471 F. Supp. 1186 (E.D. California, 1979)