9 Modern Strict Liability 9 Modern Strict Liability

9.1 Animals 9.1 Animals

9.1.1 Rhodes v. MacHugh 9.1.1 Rhodes v. MacHugh

[No. 32509-1-III.

Division Three.

November 3, 2015.]

Jay H. Rhodes, Appellant, v. Rodney MacHugh, Respondent.

*105 David A. Williams, for appellant.

Barry J. Goehler (of Law Office of Barry J. Goehler), for respondent.

Siddoway, C. J.

¶ 1 — Comments to § 23 of the Restatement (Third) of Torts, which deals with strict liability imposed on the owners of abnormally dangerous animals, observe that the common law has been satisfied overall with the generalization that livestock are not excessively dangerous, but *106“[i]n the future, courts might wish to give consideration to particular genders ... of a species that involve danger levels uncommon for the species itself.” Restatement (Third) of Torts: Liability for Physical and Emotional Harm § 23 cmt. e (Am. Law Inst. 2010) (emphasis added). In this case, Jay Rhodes asks us to hold the owner of a ram (a male sheep) strictly liable for harm caused by the ram on account of the ram’s gender-based dangerousness, rather than any abnormal dangerousness of which the owner was aware.

¶2 Mr. Rhodes is a particularly sympathetic plaintiff and appellant, both in the circumstances he presents and the forthrightness of his argument on appeal. But we conclude that existing Washington common law strikes the appropriate balance in imposing limited strict liability on the owners of domestic animals and otherwise imposing a duty of care commensurate with the character of their animals. We affirm the summary judgment dismissal of Mr. Rhodes’s complaint.

FACTS AND PROCEDURAL BACKGROUND

¶3 Jay Rhodes and Rodney MacHugh are longtime friends and neighbors. Both men live in Richland and have farmed for decades. Mr. Rhodes has raised cows, horses, and occasionally pigs and goats, but he described the summer of 2012 as “my first excursion with sheep. And an unfortunate one.” Clerk’s Papers (CP) at 21. Mr. MacHugh has bred sheep for over 30 years. Because Mr. MacHugh’s land is prone to flooding, Mr. Rhodes has allowed Mr. MacHugh to keep some of his livestock on Mr. Rhodes’s property.

¶4 In the summer of 2012, Mr. MacHugh and Mr. Rhodes went to a livestock yard in Lewiston, Idaho, where Mr. MacHugh purchased a ram to replace his existing ram, which he described as “in really old shape.” CP at 26. The replacement ram was eight or nine months old1 and *107weighed in the neighborhood of 150 pounds. It showed no vicious tendencies. The men took it directly to Mr. Rhodes’s property where, for the following month, it caused no problems. In the weeks before Mr. MacHugh put the ram in with ewes, Mr. Rhodes described it as “real friendly. He’d come up to me several times when I was changing water, and I’d pet him.” CP at 22.

¶5 On August 20, 2012, Mr. Rhodes went into his yard to turn on his sprinklers. By that time, Mr. MacHugh had put several ewes in the pasture with the ram. Mr. Rhodes walked past them and toward the five-foot sprinklers in the pasture. Just as he touched the valve at the top of the sprinklers, the ram butted him from behind, knocking him to the ground. According to Mr. Rhodes, the ram continued to “jump up in the air and then he’d hit me with his head,” knocking him out “a couple of times,” for as much as 30 minutes. CP at 23. Fortunately, a neighbor who stopped by to bring Mr. Rhodes some cantaloupes saw what was going on. Although Mr. Rhodes told her not to come into the pasture, she began throwing her cantaloupes at the ram, which was sufficiently distracted that Mr. Rhodes was able to crawl to the gate. She helped him out and slammed the gate on the charging ram. Mr. Rhodes, then 82 years old, suffered a concussion, five broken ribs, and a broken sternum and shoulder. He was hospitalized for 16 days.

¶6 Mr. Rhodes filed this action in an effort to recover for his injuries. He did not contend that the ram was abnormally dangerous, and he refused to accuse his friend of negligence, testifying, “I don’t think Mr. MacHugh thought there was anything wrong” with the ram. CP at 23. For his part, Mr. MacHugh admitted that he had owned as many as three “mean” rams over the years, but that “on my place, if they’re the least bit mean, they go real quick.” CP at 27. He testified that he had selected this ram because it was the “friendliest” of three that the seller had raised on a bottle after their mother died. CP at 26.

¶7 Because Mr. Rhodes relied exclusively on a theory of strict liability that he asked the court to extend to the *108owners of all rams, not just those known to be abnormally dangerous, the parties presented the legal issue to the trial court on summary judgment. Mr. MacHugh’s motion for summary judgment dismissing the claim was granted. Mr. Rhodes appeals.

ANALYSIS

¶8 The sole issue on appeal is whether summary judgment in favor of Mr. MacHugh was proper because he is not strictly liable for harm caused by a ram he did not know to be abnormally dangerous. No material facts are in dispute, and we, like the trial court, are presented with a pure question of law that we review de novo. Triplett v. Dep’t of Soc. & Health Servs., 166 Wn. App. 423, 427, 268 P.3d 1027 (2012).

¶9 For more than a century, the rule in Washington regarding liability for harm caused by a domestic animal2 has been:

“The owner or keeper of a domestic animal not naturally inclined to commit mischief, while bound to exercise ordinary care to prevent injury being done by it to another, is not liable for such injury if the animal be rightfully in the place when the mischief is done, unless it is affirmatively shown, not only that the animal was vicious, but that the owner or keeper had knowledge of the fact. When such scienter exists, the owner or keeper is accountable for all the injury such animal may do, without proof of any negligence or fault in the keeping, and regardless of his endeavors to so keep the animal as to prevent the mischief.”

Lynch v. Kineth, 36 Wash. 368, 370-71, 78 P. 923 (1904) (emphasis omitted) (quoting 2 Cyc. Animals 368-69 (1901)). More recently, see Johnston v. Ohls, 76 Wn.2d 398, 400, 457 *109P.2d 194 (1969); and Sligar v. Odell, 156 Wn. App. 720, 732, 233 P.3d 914 (2010); and see also 16 David K. DeWolf & Keller W. Allen, Washington Practice: Tort Law and Practice § 3:6, at 133 (4th ed. 2013), noting that “[s]trict liability for injuries caused by individual animals known to be abnormally dangerous is still the general rule,” but “when the animal is not an abnormally dangerous specimen of its class, negligence in controlling the animal must be proven.”

¶10 Washington cases are consistent with the Restatement (Second) of Torts (Am. Law Inst. 1977). In Arnold v. Laird, 94 Wn.2d 867, 871, 621 P.2d 138 (1980), our Supreme Court noted that the Restatement (Second) “recognizes two separate causes of action” against the owner of a domestic animal that causes injury. Under § 509, strict liability applies where the animal “has known dangerous propensities abnormal to its class.” Arnold, 94 Wn.2d at 871. Section 518, on the other hand, “provides that if there are no known abnormally dangerous propensities, the owner is liable only if he is negligent in failing to prevent the harm. The amount of care required is commensurate with the character of the animal.” Id. (emphasis omitted) (citing Restatement (Second) § 518 cmt. f).

¶ 11 Mr. Rhodes concedes that rams have not historically been regarded as being inherently dangerous animals. Br. of Appellant at 1-2; Restatement (Second) § 509 cmt. e (“[T]he law has not regarded bulls, stallions and rams as being abnormally dangerous animals to be kept under the strict liability stated in this Section.”). Nevertheless, relying on a comment to § 23 of the most recent Restatement, he asks that we recognize that “[t] he dangerous propensities of rams are well-known and strict liability should attach, and this whether the animal is ‘domestic’ or otherwise.” Br. of Appellant at 3.

*110¶12 The language of § 23 of the Restatement (Third) is similar to that of Restatement (Second) § 509,3 yet the comments to § 23 propose a possible gender- or breed-based modification of the general rule treating domestic animals as not excessively dangerous. Comment e states, in part:

Overall, the common law has been satisfied with the generalization that livestock and dogs are not excessively dangerous and has applied this generalization to all livestock and dogs. In the future, courts might wish to give consideration to particular genders or breeds of a species that involve danger levels uncommon for the species itself If so, it might be appropriate to impose strict liability, without individualized, scienter, on the owner of such an animal.

Restatement (Third) § 23 cmt. e (emphasis added). Mr. Rhodes asks us to act on this acknowledgment and common knowledge that while ewes may be timid, rams are known to be dangerous.

¶13 Prior versions of the Restatement have not overlooked the different temperament of male domestic animals, pointing out that “[b]ulls are more dangerous than cows and steers; stallions are more dangerous than mares and geldings; rams are more dangerous than ewes and lambs.” Restatement (Second) § 509 cmt. e. But historically the framework of liability for negligence has been viewed as adequate to address gender differences, and refusing to broaden strict liability has also been justified by policy reasons.

¶14 The Restatement (Second) recognizes the relatively dangerous propensities of male domestic animals such as bulls, stallions, and rams but characterizes them as normal to their class. As the comments to § 509 observe, “[T]hese animals have been kept for stud purposes from time imme*111morial so that the particular danger involved in their dangerous tendencies has become a normal incident of civilized life.” Restatement (Second) § 509 cmt. e; see also id. § 509 cmt. d (noting that such animals “do not introduce any unusual danger, since the somewhat dangerous characteristics of these animals are a customary incident of farming”). In other words, a ram has not been considered “abnormally” dangerous for purposes of applying strict liability under § 509 because its dangerous propensities are “normal” for its species.

¶15 It is also for policy reasons that owners of male domestic animals have not been held to a standard of strict liability, because often it is the very characteristics that cause the males to be dangerous that make them useful to society. The comments to § 518 of the Restatement (Second) observe that “ [t] he high temper normal to stud animals is so inseparable from their usefulness for breeding purposes that they are not kept at the risk of the liability stated in § 509.” Restatement (Second) § 518 cmt. f. The comments explaining the rationale for § 509’s rule of strict liability similarly observe that

the virility which makes [bulls, stallions, and rams] dangerous is necessary for their usefulness in performing their function in the socially essential breeding of livestock, [and] justifies the risk involved in their keeping. Therefore, the law has not regarded bulls, stallions and rams as being abnormally dangerous animals to be kept under the strict liability stated in this Section.

Id. § 509 cmt. e; see also id. § 509 cmt. d (“[T]he slightly added risk due to their dangerous character is counterbalanced by the desirability of raising livestock.”).

¶16 The law is not oblivious to the greater risk posed by male livestock used for breeding in the context of liability for negligence, and greater precautions are typically required in light of their characteristics. Restatement (Second) § 509 cmt. e. “The amount of care required is commensurate with the character of the animal.” Arnold, 94 Wn.2d at 871. *112As the comments to § 518 explain, “the keeper of a bull or stallion is required to take greater precautions to confine it to the land on which it is kept and to keep it under effective control when it is taken from the land than would be required of the keeper of a cow or gelding.” Restatement (Second) § 518 cmt. g.

¶17 “Rules of law . . . should not be changed for light or transient causes; but, when time and events prove the need for a change, changed they must be.” State ex rel. Wash. State Fin. Comm. v. Martin, 62 Wn.2d 645, 666, 384 P.2d 833 (1963). Here, the utility of domestic animals remains undiminished. Those who raise them and face the greatest exposure to relatively more dangerous genders or breeds will be familiar with their characteristics. Third parties continue to have recourse for an owner’s negligence, and owners are required to take greater precautions to confine and control animals in light of their characteristics. Mr. Rhodes’s unfortunate excursion with Mr. MacHugh’s ram does not persuade us that the limited scope of strict liability that Washington has historically imposed on the owners of domestic animals should be enlarged.4

¶18 Affirmed.

Korsmo and Fearing, JJ., concur.

Review denied at 185 Wn.2d 1019 (2016).

9.1.2 Restatement (3d.) (Liability for Physical and Emotional Harm) § 22: Wild Animals 9.1.2 Restatement (3d.) (Liability for Physical and Emotional Harm) § 22: Wild Animals

Restatement (3d.) (Liability for Physical and Emotional Harm) § 22: Wild Animals (link)

(a) An owner or possessor of a wild animal is subject to strict liability for physical harm caused by the wild animal.

(b) A wild animal is an animal that belongs to a category of animals that have not been generally domesticated and that are likely, unless restrained, to cause personal injury.

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Reproduced with permission, not as part of a Creative Commons license, from The American Law Institute.

9.1.3 Restatement (3d.) (Liability for Physical and Emotional Harm) § 23: Abnormally Dangerous Animals 9.1.3 Restatement (3d.) (Liability for Physical and Emotional Harm) § 23: Abnormally Dangerous Animals

Restatement (3d.) (Liability for Physical and Emotional Harm) § 23: Abnormally Dangerous Animals (link)

An owner or possessor of an animal that the owner or possessor knows or has reason to know has dangerous tendencies abnormal for the animal's category is subject to strict liability for physical harm caused by the animal if the harm ensues from that dangerous tendency.

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Reproduced with permission, not as part of a Creative Commons license, from The American Law Institute.

9.1.4 Restatement (2d.) § 515: Plaintiff's Conduct 9.1.4 Restatement (2d.) § 515: Plaintiff's Conduct

Restatement (2d.) § 515: Plaintiff's Conduct (link)

(1) Except as stated in Subsection (2), the contributory negligence of the plaintiff is not a defense to the strict liability of the possessor of an animal.

(2) The plaintiff's contributory negligence in knowingly and unreasonably subjecting himself to the risk that a wild animal or an abnormally dangerous domestic animal will do harm to his person, land or chattels, is a defense to the strict liability.

(3) The plaintiff's assumption of the risk of harm from the animal is a defense to the strict liability.

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Reproduced with permission, not as part of a Creative Commons license, from The American Law Institute.

9.2 Abnormally Dangerous Activities 9.2 Abnormally Dangerous Activities

9.2.1 Spano v. Perini Corp. 9.2.1 Spano v. Perini Corp.

Ann Spano, Appellant, v. Perini Corporation et al., Respondents. Robert G. Davis, Appellant, v. Perini Corporation et al., Respondents.

Argued May 15, 1969;

decided June 5, 1969.

Gilbert Goldstein and Lawrence Kovalsky for Ann Spano, appellant.

I. The evidence adduced by plaintiff Spano established that the proximate cause of the damage to her building was the dynamite blasting by defendant contractors, 125 feet from said building. (Spett v. President Monroe Bldg. & Mfg. Corp., 19 N Y 2d 203; Meiselman v. Crown Hgts. Hosp., 285 N. Y. 389.) II. Defendant contractors are liable to plaintiff Spano for concussion damages to her real property caused by their dynamite blasting, without proof of negligence, and inde*12pendently of contract provisions. (Schlansky v. Augustus V. Riegel, Inc., 9 N Y 2d 493; Heimer v. Johnson, Drake & Piper, 51 Misc 2d 958; Booth v. Rome, W. & O. T. R. R. Co., 140 N. Y. 267; Whitman Hotel Corp. v. Elliott & Watrous Eng. Co., 137 Conn. 562; FitzSimons & Connell Co. v. Braun & Fitts, 199 Ill. 390; Hickey v. McCabe & Bihler, 30 R. I. 346; Thomas v. Hendrickson Bros., 30 A D 2d 730; Exner v. Sherman Power Constr, Co., 54 F. 2d 510; Colton v. Onderdonk, 69 Cal. 155; Louden v. City of Cincinnati, 90 Ohio St. 144.) III. Plaintiff Spano, as a third-party beneficiary, is entitled to recover from defendant contractors for physical damage to her property caused by their dynamite blasting, because such contractors, in their contract with the Board of Water Supply, agreed to be responsible for such damage. (Seaver v. Ransom, 224 N. Y. 233; Smyth v. City of New York, 203 N. Y. 106; Coley v. Cohen, 289 N. Y. 365; Root Neal & Co. v. Creadon, 290 N. Y. 733.)

Carl G. Lederer for Robert Gr. Davis, appellant.

I. The evidence adduced by plaintiff Davis established that the proximate cause of the damage to his automobile was the dynamite blasting by defendant contractors, 125 feet from said building, where it was garaged. (Spett v. President Monroe Bldg, & Mfg. Corp., 19 N Y 2d 203; Meiselman v. Crown Hgts. Hosp., 285 N. Y. 389.) II. Defendant contractors are liable to plaintiff Davis for concussion damages to his automobile caused by their dynamite blasting, without proof of negligence or physical trespass, and independently of contract provisions. (Concurs with Point II of brief submitted by plaintiff-appellant Ann Spano.) III. Plaintiff Davis as a third-party beneficiary is entitled to recover from defendant contractors for physical damage to his property caused by their dynamite blasting, because such contractors, in their contract with the Board of Water Supply, agreed to be responsible for such damage. (Concurs in the law presented in Point III in brief of plaintiff-appellant Ann Spano.)

Richard Bakalor and Robert E. Quirk for respondents.

I. Plaintiff Davis failed to present sufficient evidence to prove negligence which was the basis of the sole cause of action which he pleaded. (Lamphere v. Lang, 213 N. Y. 585; Reed v. McCon *13 nell, 133 N. Y. 425; Schlansky v. Augustus V. Riegal, Inc., 9 N Y 2d 493; Melino v. Tougher Heating & Plumbing Co., 23 A D 2d 616; Harmon v. Alfred Peats Co., 243 N. Y. 473; DuPont Auto Distrs. v. DuPont Motors, 213 App. Div. 313.) II. Plaintiff Davis also failed to prove that the damage to his automobile was caused by the alleged accident. III. Neither plaintiff is entitled to recover from defendants as a third-party beneficiary to the contract between defendants and the Board of Water Supply of the City of New York. (Weinbaum v. Algonquin Gas Transmission Co., 20 Misc 2d 276; Coley v. Cohen, 289 N. Y. 365.) IV. The question of strict liability for blasting damages without physical trespass should not be considered by this court for the reason that it was raised for the first time on appeal. (Shapira v. United Med. Serv., 15 N Y 2d 200.) V. Plaintiffs’ evidence was insufficient to demonstrate a causal relation between their damages and defendants’ blasting. (Spett v. President Monroe Bldg. & Mfg. Corp., 19 N. Y. 203; Boyce Motor Lines v. State of New York, 280 App. Div. 693, 306 N. Y. 801; Ruback v. McCleary, Wallin & Crouse, 220 N. Y. 188.) VI. Defendants are not liable to plaintiffs for concussion damages to their property caused by blasting without proof of negligence. (Booth v. Rome, W. & O. T. R. R. Co., 140 N. Y. 267; Schlansky v. Augustus V. Riegel, Inc., 9 N Y 2d 493.) VII. If this court were to determine all questions in appellants’ favor, the most this court should do is remit the case to the Appellate Division for a determination as to whether a plaintiff’s verdict should be reversed as against the weight of the evidence. (Thomas v. Hendrickson Bros., 30 A D 2d 730.)

Chief Judge Fuld.

The principal question posed on this appeal is whether a person who has sustained property damage caused by blasting on nearby property can maintain an action for damages without a showing that the blaster was negligent. Since 1893, when this court decided the case of Booth v. Rome, W. & O. T. R. R. Co. (140 N. Y. 267), it has been the law of this State that proof of negligence was required unless the blast was accompanied by an actual physical invasion of the damaged property— for example, by rocks or other material being cast upon the premises. We are now asked to reconsider that rule.

The plaintiff Spano is the owner of a garage in Brooklyn which was wrecked by a blast occurring on November 27, 1962. *14There was then in that garage, for repairs, an automobile owned by the plaintiff Davis which he also claims was damaged by the blasting. Each of the plaintiffs brought suit against the two defendants who, as joint venturers, were engaged in constructing a tunnel in the vicinity pursuant to a contract with the City of New York.1 The two eases were tried together, without a jury, in the Civil Court of the City of New York, New York County, and judgments were rendered in favor of the plaintiffs. The judgments were reversed by the Appellate Term and the Appellate Division affirmed that order, granting leave to appeal to this court.

It is undisputed that, on the day in question (November 27, 1962), the defendants had set off a total of 194 sticks of dynamite at a construction site which was only 125. feet away from the damaged premises. Although both plaintiffs alleged negligence in their complaints, no attempt was made to show that the defendants had failed to exercise reasonable care or to take necessary precautions when they were blasting. Instead, they chose "to rely, upon the trial, solely on the principle of absolute liability either on a tort theory or on .the basis of their being third-party beneficiaries of the defendants’ contract with the city. At the close of the plaintiff Spano’s case, when def endants ’ attorney moved to' dismiss the action on the ground, .among others, that no negligence, had been proved, the trial judge expressed the view that the defendants could be held liable even ■though they were not shown to have been careless. The case then proceeded, with evidence being introduced solely on the question of damages and proximate cause. Following the trial, the court awarded damages of some $4,400 to Spano and of $329 to Davis.

On appeal, a divided Appellate Term reversed that judgment, declaring that it deemed itself concluded by the established rule in this State requiring proof of negligence. Justice Markowitz, *15who dissented, urged that the Booth case should no longer be considered controlling precedent.

The Appellate Division affirmed; it called attention to a decision in the Third Department (Thomas v. Hendrickson Bros., 30 A D 2d 730, 731), in which the court observed that “ [i]f Booth is to be overruled, ‘ the announcement thereof should come from the authoritative .source and not in the form of interpretation or prediction by an intermediate appellate court ’ ”.

In our view, the time has come for this court to make that “ announcement ” and declare that one who engages in blasting must .assume responsibility, and be liable without fault, for any injury he causes to neighboring property.

The concept of absolute liability in blasting cases is hardly a novel one. The overwhelming majority of American jurisdictions have adopted such a rule. (See Prosser, Torts [2d ed.], § 59, p. 336; 3 Restatement, Torts, §§ 519, 520, comment e; Ann., 20 ALR 2d 1372. )2 Indeed, this court itself, several years ago, noted that a change in our law would "conform to the more widely (indeed almost universally) approved doctrine that a blaster is absolutely liable for any damages he causes, with or without trespass”. (Schlansky v. Augustus V. Riegel, Inc., 9 N Y 2d 493,496.)

We need not rely solely, however, upon out-of-state decisions in order to attain our result. Not only has the rationale of the Booth case (140 N. Y. 267, supra) been overwhelmingly rejected elsewhere but it appears to be fundamentally inconsistent with earlier cases in our own court which had held, long before Booth was decided, that a party was absolutely liable for damages to neighboring property caused by explosions. (See, e.g., Hay v. Cohoes Co., 2 N. Y. 159; Heeg v. Licht, 80 N. Y. 579.) In the Hay case (2 N. Y. 159, supra), for example, the defendant was engaged in blasting an excavation for a canal and the force of the blasts caused large quantities of earth and stones to be thrown against the plaintiff’s house, knocking down his stoop *16and part of Ms cMmney. The court held the defendant absolutely liable for the damage caused, stating (2 N. Y., at pp. 160-161):

‘ ‘ It is an elementary principle in reference to private rights, that every individual is entitled to the undisturbed possession and lawful enjoyment -of his own property. • The mode -of enjoyment is necessarily limited by the rights -of others—otherwise it might be made destructive of their rights altogether. Hence the maxim sic útere tuo, Sc. The defendants had the right to dig the canal. The plaintiff the right to the undisturbed possession -of his property! If these rights conflict, the former must yield to the latter, as the more important of the two, since, upon grounds of public policy, it is better that one man should -surrender a particular use of his land, than that another should be deprived of the beneficial use -of his property -altogether, which might be the consequence if the privilege'of the former should be wholly unrestricted. ' The case before us illustrates this principle. For if the defendants in -excavating their canal, in itself a lawful use -of their land, could, in the manner mentioned by the witnesses, -demolish the stoop of the plaintiff with impunity, they might, for the same purpose, -on the exercise of reasonable care, demolish , his' house, and thus deprive him of all use of his property.” -

Although the court in Booth drew -a distinction between -a situation— such as w-as presented in the Bay case—Where there was “ a physical invasion ” of, -or trespass -on, the plaintiff’s property and one in which the damage.was caused by setting the air in motion, or in some other unexplained way ” (140 N. Y., at pp. 279, 280), it is clear that the court, in the earlier cases, was not concerned with the particular manner by which the damage was caused but by the -simple fact that any explosion in a built-up area was likely to cause damage. Thus, in Heeg v. Licht (80 N. Y. 579, supra), the court held that there should be absolute liability where the damage was caused by the accidental explosion of stored gunpowder, even in the absence of a physical trespass (p. 581):

“ The defendant had erected a building and -stored materials therein, which from their character were *17. liable .to .and actually did explode, causing injury to the plaintiff. The fact that the explosion took place tends to establish that the magazine was danger ous and liable to cause damage to the property of persons residing in the vicinity. * * * ' The fact that the magazine was liable to such a contingency, which could not be guarded against or averted by the greatest degree of care and vigilance, evinces its dangerous character, * * * In such a case, the rule which exonerates a party engaged in a lawful business, when free from negligence, has no application. ’ ’

Such reasoning should, we venture, have led to the conclusion that the intentional setting off of explosives — that is, blasting— in an area in which it was likely to cause harm to neighboring property similarly results in absolute liability. However, the court in the Booth case rejected such an extension of the rule for the reason that [t]o exclude the defendant from blasting to adapt its lot to the contemplated uses, at the instance of the plaintiff, would not be a compromise between conflicting rights, but an extinguishment of the right of the one for the benefit of the other ” (140 N. Y., at p. 281). The court expanded on this • by stating, 1 This sacrifice, we think, the law does not exact. Public policy is promoted by the building up of towns and cities and the improvement of property. Any unnecessary restraint on freedom of .action of a property owner hinders this.”

This rationale cannot withstand analysis. The plaintiff in Booth was not seeking, as the court implied, to exclude the defendant from blasting ” and thus prevent desirable improvements to the latter’s property. Rather, he was merely seeking compensation for the damage which was inflicted upon his own property as a result of that blasting. The question, in other words, was not whether it was lawful or proper to engage in blasting but who should bear the cost of any resulting damage — the person who engaged in .the dangerous activity or the innocent neighbor injured thereby. Viewed in such a light, it clearly appears that Booth was wrongly decided and should be forthrightly overruled.

In more recent oases, our court has already gone far toward mitigating the harsh effect of the rule laid down in the Booth case. Thus, we have held that negligence can properly be *18inferred from the mere fact that a blast has caused extensive damage, even where the plaintiff is unable to ¡show ‘ ‘ the method of blasting or -the strength -of the charges -or the character of the .soil .or rock.” (Schlansky v. Augustus V. Riegel, Inc., 9 N Y 2d 493, 497, supra; see, also, Brown v. Rockefeller Center, 289 N. Y. 729.) But, even under .this liberal interpretation of Booth, it would still remain possible for a defendant who engages in blasting operations—which he realizes are likely to cause injury — to' avoid liability by showing that he ■ exercised reasonable care. Since blasting involves a substantial risk of harm no matter the degree of care exercised, we perceive no reason for ever permitting .a person who engages in such an activity to impose this risk upon nearby persons or property without assuming responsibility "therefor.

Indeed, the defendants devote but brief .argument in defense of the Booth rule. The principle thrust of their -argument is directed not to the requisite standard of care to be used but, rather, to the sufficiency .of the plaintiffs’ pleadings and the proof adduced on the issue of causation.3

As to the sufficiency of the pleadings, we need but point out that both Spano’s and Davis’s complaints alleged that the defendants engaged in blasting operations which resulted in damage -to their respective property. Thus, they contained adequate “notice of the transactions * * * intended to be proved and the material elements -of [the] cause .of action ” (CPLR 3013). The fact that, in Davis ’is case, these allegations were subsumed in a cause -of action for .negligence is immaterial, since the inclusion of unnecessary additional allegations does not affect" the -sufficiency of a complaint. (See, e.g., Rager v. McCloskey, 305 N. Y. 75, 80; Abbey v. Wheeler, 170 N.Y. 122, 127.)

There .remains, then, .only the matter of proof -on the issue -of causation. Although the evidence adduced by the plaintiffs on this question was entirely circumstantial, it m-ay not be said that it was -insufficient as a matter of law. The plaintiffs ’ prin*19cipal witness was a contractor who had leased a portion of the premises from Spano. It was hi.s testimony that there was no damage on or to the premises prior to November 27; that he had heard an explosion at about noon on that day while he was working some three blocks away and that, when he returned a few hours later, the building 1 ‘ was cracked in the wall * * * the window broke, and the cement floor .all pop up.” In addition, an insurance adjuster, an expert with wide experience in handling explosion claims, who inspected the damage to Davis’s car, testified that the damage was evidently caused by a concussion of one form or another.” The defendants-’ expert attributed the damage to another cause — poor maintenance and building deterioration—but,' admittedly, the defendants were engaged in blasting operations in the area at the time and, as the Appellate Term expressly found, the -inference that this was the cause of the damage could properly be drawn. Even though the proof was not insufficient as a matter of law, however, the Appellate Division affirmed on the sole ground that no negligence had been proven against the defendants and thus had no occasion to consider the question whether, in fact, the blasting caused the damage. That being so, we must remit the case to the Appellate Division so that it may pass upon the weight .of the evidence (CPLR 5501, subd. [c]; 5613; see Spett v. President Monroe Bldg. & Mfg. Corp., 19 N Y 2d 203).

The .order appealed from'should be reversed, with costs, and the matter remitted to the Appellate Division for further proceedings in accordance with this .opinion.

Judges Burke, Scileppi, Bergan, Breitel and Jasen concur.

Order reversed, etc.

9.2.2 Restatement (2d.) § 519: General Principle 9.2.2 Restatement (2d.) § 519: General Principle

Restatement (2d.) § 519: General Principle (link)

(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.

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Reproduced with permission, not as part of a Creative Commons license, from The American Law Institute.

9.2.3 Restatement (2d.) § 520: Abnormally Dangerous Activities 9.2.3 Restatement (2d.) § 520: Abnormally Dangerous Activities

Restatement (2d.) § 520: Abnormally Dangerous Activities (link)

In determining whether an activity is abnormally dangerous, the following factors are to be considered:

(a) existence of a high degree of risk of some harm to the person, land or chattels of others;

(b) likelihood that the harm that results from it will be great;

(c) inability to eliminate the risk by the exercise of reasonable care;

(d) extent to which the activity is not a matter of common usage;

(e) inappropriateness of the activity to the place where it is carried on; and

(f) extent to which its value to the community is outweighed by its dangerous attributes.

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Reproduced with permission, not as part of a Creative Commons license, from The American Law Institute.

9.2.4 Restatement (3d.) (Liability for Physical and Emotional Harm) § 20: Abnormally Dangerous Activities 9.2.4 Restatement (3d.) (Liability for Physical and Emotional Harm) § 20: Abnormally Dangerous Activities

Restatement (3d.) (Liability for Physical and Emotional Harm) § 20: Abnormally Dangerous Activities (link)

(a) An actor who carries on an abnormally dangerous activity is subject to strict liability for physical harm resulting from the activity.

(b) An activity is abnormally dangerous if:

(1) the activity creates a foreseeable and highly significant risk of physical harm even when reasonable care is exercised by all actors; and

(2) the activity is not one of common usage.

__

Reproduced with permission, not as part of a Creative Commons license, from The American Law Institute.

9.2.5 Indiana Harbor Belt Railroad v. American Cyanamid Co. 9.2.5 Indiana Harbor Belt Railroad v. American Cyanamid Co.

Page 1174

916 F.2d 1174
32 ERC 1228, 59 USLW 2295, 21 Envtl.
L. Rep. 20,360
INDIANA HARBOR BELT RAILROAD COMPANY, Plaintiff-Appellee,
Cross-Appellant,
v.
AMERICAN CYANAMID COMPANY, Defendant-Appellant, Cross-Appellee.
Nos. 89-3703, 89-3757.
United States Court of Appeals,
Seventh Circuit.
Argued Sept. 7, 1990.
Decided Oct. 18, 1990.

        Anna M. Kelly, Roger A. Serpe, Chicago, Ill., for plaintiff-appellee, cross-appellant.

        Thomas D. Allen, Ruth E. VanDemark, Iren J. Ustel, Wildman, Harrold, Allen & Dixon, Chicago, Ill., for defendant-appellant, cross-appellee, American Cyanamid Company.

        Robert L. Landess, Daniel P. Hogan, Ross & Hardies, Chicago, Ill., for defendant, cross-appellee, Missouri Pacific Railroad Company.

Page 1175

        John M. Christian, Jan Feldman, Stanley V. Figura, Phelan, Pope & John, Chicago, Ill., for amicus curiae Chemical Industries Council of Illinois.

        David G. Norrell, Eric P. Heichel, Kirkland & Ellis, Washington, D.C., for amici curiae Chemical Mfrs. Ass'n, Nat. Agricultural Chemicals Ass'n, Fertilizer Institute, Chlorine Institute, Compressed Gas Ass'n, Nat. Propane Gas Ass'n, Nat. Indus. Transp. League, American Petroleum Institute.

        Martin W. Bercovici, Kris A. Monteith, Keller & Heckman, Washington, D.C., for amici curiae American Fiber Mfrs. Ass'n, Inc., Rubber Mfrs. Ass'n, Inc., Soc. of Plastics Industry, Inc.

        Before POSNER, MANION and KANNE, Circuit Judges.

        POSNER, Circuit Judge.

        American Cyanamid Company, the defendant in this diversity tort suit governed by Illinois law, is a major manufacturer of chemicals, including acrylonitrile, a chemical used in large quantities in making acrylic fibers, plastics, dyes, pharmaceutical chemicals, and other intermediate and final goods. On January 2, 1979, at its manufacturing plant in Louisiana, Cyanamid loaded 20,000 gallons of liquid acrylonitrile into a railroad tank car that it had leased from the North American Car Corporation. The next day, a train of the Missouri Pacific Railroad picked up the car at Cyanamid's siding. The car's ultimate destination was a Cyanamid plant in New Jersey served by Conrail rather than by Missouri Pacific. The Missouri Pacific train carried the car north to the Blue Island railroad yard of Indiana Harbor Belt Railroad, the plaintiff in this case, a small switching line that has a contract with Conrail to switch cars from other lines to Conrail, in this case for travel east. The Blue Island yard is in the Village of Riverdale, which is just south of Chicago and part of the Chicago metropolitan area.

        The car arrived in the Blue Island yard on the morning of January 9, 1979. Several hours after it arrived, employees of the switching line noticed fluid gushing from the bottom outlet of the car. The lid on the outlet was broken. After two hours, the line's supervisor of equipment was able to stop the leak by closing a shut-off valve controlled from the top of the car. No one was sure at the time just how much of the contents of the car had leaked, but it was feared that all 20,000 gallons had, and since acrylonitrile is flammable at a temperature of 30? Fahrenheit or above, highly toxic, and possibly carcinogenic (Acrylonitrile, 9 International Toxicity Update, no. 3, May-June 1989, at 2, 4), the local authorities ordered the homes near the yard evacuated. The evacuation lasted only a few hours, until the car was moved to a remote part of the yard and it was discovered that only about a quarter of the acrylonitrile had leaked. Concerned nevertheless that there had been some contamination of soil and water, the Illinois Department of Environmental Protection ordered the switching line to take decontamination measures that cost the line $981,022.75, which it sought to recover by this suit.

        One count of the two-count complaint charges Cyanamid with having maintained the leased tank car negligently. The other count asserts that the transportation of acrylonitrile in bulk through the Chicago metropolitan area is an abnormally dangerous activity, for the consequences of which the shipper (Cyanamid) is strictly liable to the switching line, which bore the financial brunt of those consequences because of the decontamination measures that it was forced to take. After the district judge denied Cyanamid's motion to dismiss the strict liability count, 517 F.Supp. 314 (N.D.Ill.1981), the switching line moved for summary judgment on that count--and won. 662 F.Supp. 635 (N.D.Ill.1987). The judge directed the entry of judgment for $981,022.75 under Fed.R.Civ.P. 54(b) to permit Cyanamid to take an immediate appeal even though the negligence count remained pending. We threw out the appeal on the ground that the negligence and strict liability counts were not separate claims but merely separate theories involving the same facts, making Rule 54(b) inapplicable. 860 F.2d 1441 (7th Cir.1988). The district

Page 1176

judge then, over the switching line's objection, dismissed the negligence claim with prejudice, thus terminating proceedings in the district court and clearing the way for Cyanamid to file an appeal of which we would have jurisdiction. There is no doubt about our appellate jurisdiction this time. Whether or not the judge was correct to dismiss the negligence claim merely to terminate the lawsuit so that Cyanamid could appeal (the only ground he gave for the dismissal), he did it, and by doing so produced an incontestably final judgment. The switching line has cross-appealed, challenging the dismissal of the negligence count.

        The question whether the shipper of a hazardous chemical by rail should be strictly liable for the consequences of a spill or other accident to the shipment en route is a novel one in Illinois, despite the switching line's contention that the question has been answered in its favor by two decisions of the Illinois Appellate Court that the district judge cited in granting summary judgment. In both Fallon v. Indian Trail School, 148 Ill.App.3d 931, 934, 102 Ill.Dec. 479, 481, 500 N.E.2d 101, 103 (1986), and Continental Building Corp. v. Union Oil Co., 152 Ill.App.3d 513, 516, 105 Ill.Dec. 502, 504-05, 504 N.E.2d 787, 789-90 (1987), the Illinois Appellate Court cited the district court's first opinion in this case with approval and described it as having held that the transportation of acrylonitrile in the Chicago metropolitan area is an abnormally dangerous activity, for which the shipper is strictly liable. These discussions are dicta. The cases did not involve acrylonitrile--or for that matter transportation--and in both cases the court held that the defendant was not strictly liable. The discussions were careless dicta, too, because the district court had not in its first opinion, the one they cited, held that acrylonitrile was in fact abnormally dangerous. It merely had declined to grant a motion to dismiss the strict liability count for failure to state a claim. We do not wish to sound too censorious; this court has twice made the same mistake in interpreting the district court's first opinion. Martin v. Harrington & Richardson, Inc., 743 F.2d 1200, 1203 (7th Cir.1984); City of Bloomington v. Westinghouse Elec. Corp., 891 F.2d 611, 615 (7th Cir.1989). But mistake it is. The dicta in Fallon and Continental cannot be considered reliable predictors of how the Supreme Court of Illinois would rule if confronted with the issue in this case. We are not required to follow even the holdings of intermediate state appellate courts if persuaded that they are not reliable predictors of the view the state's highest court would take. Williams v. Lane, 826 F.2d 654, 662-63 (7th Cir.1987); Williams, McCarthy, Kinley, Rudy & Picha v. Northwestern National Ins. Group, 750 F.2d 619, 624-25 (7th Cir.1984); Klippel v. U-Haul Co., 759 F.2d 1176, 1181 (4th Cir.1985). No court is required to follow another court's dicta. Cf. Wood v. Armco, Inc., 814 F.2d 211, 213-14 (5th Cir.1987). Here they are not even considered or well-reasoned dicta, founded as they are on the misreading of an opinion.

        The parties agree that the question whether placing acrylonitrile in a rail shipment that will pass through a metropolitan area subjects the shipper to strict liability is, as recommended in Restatement (Second) of Torts Sec. 520, comment l (1977), a question of law, so that we owe no particular deference to the conclusion of the district court. They also agree (and for this proposition, at least, there is substantial support in the Fallon and Continental opinions) that the Supreme Court of Illinois would treat as authoritative the provisions of the Restatement governing abnormally dangerous activities. The key provision is section 520, which sets forth six factors to be considered in deciding whether an activity is abnormally dangerous and the actor therefore strictly liable.

        The roots of section 520 are in nineteenth-century cases. The most famous one is Rylands v. Fletcher, 1 Ex. 265, aff'd, L.R. 3 H.L. 300 (1868), but a more illuminating one in the present context is Guille v. Swan, 19 Johns. (N.Y.) 381 (1822). A man took off in a hot-air balloon and landed, without intending to, in a vegetable garden in New York City. A crowd that

Page 1177

had been anxiously watching his involuntary descent trampled the vegetables in their endeavor to rescue him when he landed. The owner of the garden sued the balloonist for the resulting damage, and won. Yet the balloonist had not been careless. In the then state of ballooning it was impossible to make a pinpoint landing.

        Guille is a paradigmatic case for strict liability. (a) The risk (probability) of harm was great, and (b) the harm that would ensue if the risk materialized could be, although luckily was not, great (the balloonist could have crashed into the crowd rather than into the vegetables). The confluence of these two factors established the urgency of seeking to prevent such accidents. (c) Yet such accidents could not be prevented by the exercise of due care; the technology of care in ballooning was insufficiently developed. (d) The activity was not a matter of common usage, so there was no presumption that it was a highly valuable activity despite its unavoidable riskiness. (e) The activity was inappropriate to the place in which it took place--densely populated New York City. The risk of serious harm to others (other than the balloonist himself, that is) could have been reduced by shifting the activity to the sparsely inhabited areas that surrounded the city in those days. (f) Reinforcing (d), the value to the community of the activity of recreational ballooning did not appear to be great enough to offset its unavoidable risks.

        These are, of course, the six factors in section 520. They are related to each other in that each is a different facet of a common quest for a proper legal regime to govern accidents that negligence liability cannot adequately control. The interrelations might be more perspicuous if the six factors were reordered. One might for example start with (c), inability to eliminate the risk of accident by the exercise of due care. Erbrich Products Co. v. Wills, 509 N.E.2d 850, 857 n. 3 (Ind.App.1987). The baseline common law regime of tort liability is negligence. When it is a workable regime, because the hazards of an activity can be avoided by being careful (which is to say, nonnegligent), there is no need to switch to strict liability. Sometimes, however, a particular type of accident cannot be prevented by taking care but can be avoided, or its consequences minimized, by shifting the activity in which the accident occurs to another locale, where the risk or harm of an accident will be less ((e)), or by reducing the scale of the activity in order to minimize the number of accidents caused by it ((f)). Bethlehem Steel Corp. v. EPA, 782 F.2d 645, 652 (7th Cir.1986); Shavell, Strict Liability versus Negligence, 9 J. Legal Stud. 1 (1980). By making the actor strictly liable--by denying him in other words an excuse based on his inability to avoid accidents by being more careful--we give him an incentive, missing in a negligence regime, to experiment with methods of preventing accidents that involve not greater exertions of care, assumed to be futile, but instead relocating, changing, or reducing (perhaps to the vanishing point) the activity giving rise to the accident. Anderson v. Marathon Petroleum Co., 801 F.2d 936, 939 (7th Cir.1986). The greater the risk of an accident ((a)) and the costs of an accident if one occurs ((b)), the more we want the actor to consider the possibility of making accident-reducing activity changes; the stronger, therefore, is the case for strict liability. Finally, if an activity is extremely common ((d)), like driving an automobile, it is unlikely either that its hazards are perceived as great or that there is no technology of care available to minimize them; so the case for strict liability is weakened.

        The largest class of cases in which strict liability has been imposed under the standard codified in the Second Restatement of Torts involves the use of dynamite and other explosives for demolition in residential or urban areas. Restatement, supra, Sec. 519, comment d; City of Joliet v. Harwood, 86 Ill. 110 (1877). Explosives are dangerous even when handled carefully, and we therefore want blasters to choose the location of the activity with care and also to explore the feasibility of using safer substitutes (such as a wrecking ball), as well as to be careful in the blasting itself. Blasting is not a commonplace activity

Page 1178

like driving a car, or so superior to substitute methods of demolition that the imposition of liability is unlikely to have any effect except to raise the activity's costs.

        Against this background we turn to the particulars of acrylonitrile. Acrylonitrile is one of a large number of chemicals that are hazardous in the sense of being flammable, toxic, or both; acrylonitrile is both, as are many others. A table in the record, drawn from Glickman & Harvey, Statistical Trends in Railroad Hazardous Material Safety, 1978 to 1984, at pp. 63-65 (Draft Final Report to the Environmental & Hazardous Material Studies Division of the Association of American Railroads, April 1986) (tab. 4.1), contains a list of the 125 hazardous materials that are shipped in highest volume on the nation's railroads. Acrylonitrile is the fifty-third most hazardous on the list. Number 1 is phosphorus (white or yellow), and among the other materials that rank higher than acrylonitrile on the hazard scale are anhydrous ammonia, liquified petroleum gas, vinyl chloride, gasoline, crude petroleum, motor fuel antiknock compound, methyl and ethyl chloride, sulphuric acid, sodium metal, and chloroform. The plaintiff's lawyer acknowledged at argument that the logic of the district court's opinion dictated strict liability for all 52 materials that rank higher than acrylonitrile on the list, and quite possibly for the 72 that rank lower as well, since all are hazardous if spilled in quantity while being shipped by rail. Every shipper of any of these materials would therefore be strictly liable for the consequences of a spill or other accident that occurred while the material was being shipped through a metropolitan area. The plaintiff's lawyer further acknowledged the irrelevance, on her view of the case, of the fact that Cyanamid had leased and filled the car that spilled the acrylonitrile; all she thought important is that Cyanamid introduced the product into the stream of commerce that happened to pass through the Chicago metropolitan area. Her concession may have been incautious. One might want to distinguish between the shipper who merely places his goods on his loading dock to be picked up by the carrier and the shipper who, as in this case, participates actively in the transportation. But the concession is illustrative of the potential scope of the district court's decision.

        No cases recognize so sweeping a liability. Several reject it, though none has facts much like those of the present case. Hawkins v. Evans Cooperage Co., 766 F.2d 904, 907 (5th Cir.1985); New Meadows Holding Co. v. Washington Power Co., 102 Wash.2d 495, 687 P.2d 212 (1984); Ozark Industries, Inc. v. Stubbs Transports, Inc., 351 F.Supp. 351, 357 (W.D.Ark.1972). With National Steel Service Center v. Gibbons, 693 F.2d 817 (8th Cir.1982), which held a railroad strictly liable for transporting propane gas--but under Iowa law, which uses a different standard from that of the Restatement--we may pair Seaboard Coast Line R.R. v. Mobil Chemical Co., 172 Ga.App. 543, 323 S.E.2d 849 (1984), which refused to impose strict liability on facts similar to those in this case, but again on the basis of a standard different from that of the Restatement. Zero Wholesale Co. v. Stroud, 264 Ark. 27, 571 S.W.2d 74 (1978), refused to hold that the delivery of propane gas was not an ultrahazardous activity as a matter of law. But the delivery in question was to a gas-storage facility, and the explosion occurred while gas was being pumped from the tank truck into a storage tank. This was a highly, perhaps unavoidably, dangerous activity.

        Siegler v. Kuhlman, 81 Wash.2d 448, 502 P.2d 1181 (1972), also imposed strict liability on a transporter of hazardous materials, but the circumstances were again rather special. A gasoline truck blew up, obliterating the plaintiff's decedent and her car. The court emphasized that the explosion had destroyed the evidence necessary to establish whether the accident had been due to negligence; so, unless liability was strict, there would be no liability--and this as the very consequence of the defendant's hazardous activity. 81 Wash.2d at 454-55, 502 P.2d at 1185. But when the Supreme Court of Washington came to decide the New Meadows case, supra, it did not distinguish Siegler on this ground, perhaps realizing

Page 1179

that the plaintiff in Siegler could have overcome the destruction of the evidence by basing a negligence claim on the doctrine of res ipsa loquitur. Instead it stressed that the transmission of natural gas through underground pipes, the activity in New Meadows, is less dangerous than the transportation of gasoline by highway, where the risk of an accident is omnipresent. 102 Wash.2d at 502-03, 687 P.2d at 216-17. We shall see that a further distinction of great importance between the present case and Siegler is that the defendant there was the transporter, and here it is the shipper.

        Cases such as McLane v. Northwest Natural Gas Co., 255 Or. 324, 467 P.2d 635 (1970); Langlois v. Allied Chemical Corp., 258 La. 1067, 249 So.2d 133 (1971); State Dept. of Environmental Protection v. Ventron, 94 N.J. 473, 488, 468 A.2d 150, 157-60 (N.J.1983); Cities Service Co. v. State, 312 So.2d 799 (Fla.App.1975), and Sterling v. Velsicol Chemical Corp., 647 F.Supp. 303, 315-16 (W.D.Tenn.1986), aff'd in part and rev'd in part, on other grounds, 855 F.2d 1188 (6th Cir.1988); but see Standard Equipment, Inc. v. Boeing Co., 1987 U.S.Dist.Lexis 15137, at pp. *19-20 (W.D.Wash.1987), that impose strict liability for the storage of a dangerous chemical provide a potentially helpful analogy to our case. But they can be distinguished on the ground that the storer (like the transporter, as in Siegler ) has more control than the shipper.

        So we can get little help from precedent, and might as well apply section 520 to the acrylonitrile problem from the ground up. To begin with, we have been given no reason, whether the reason in Siegler or any other, for believing that a negligence regime is not perfectly adequate to remedy and deter, at reasonable cost, the accidental spillage of acrylonitrile from rail cars. Cf. Bagley v. Controlled Environment Corp., 127 N.H. 556, 560, 503 A.2d 823, 826 (1986). Acrylonitrile could explode and destroy evidence, but of course did not here, making imposition of strict liability on the theory of the Siegler decision premature. More important, although acrylonitrile is flammable even at relatively low temperatures, and toxic, it is not so corrosive or otherwise destructive that it will eat through or otherwise damage or weaken a tank car's valves although they are maintained with due (which essentially means, with average) care. No one suggests, therefore, that the leak in this case was caused by the inherent properties of acrylonitrile. It was caused by carelessness--whether that of the North American Car Corporation in failing to maintain or inspect the car properly, or that of Cyanamid in failing to maintain or inspect it, or that of the Missouri Pacific when it had custody of the car, or that of the switching line itself in failing to notice the ruptured lid, or some combination of these possible failures of care. Accidents that are due to a lack of care can be prevented by taking care; and when a lack of care can (unlike Siegler ) be shown in court, such accidents are adequately deterred by the threat of liability for negligence.

        It is true that the district court purported to find as a fact that there is an inevitable risk of derailment or other calamity in transporting "large quantities of anything." 662 F.Supp. at 642. This is not a finding of fact, but a truism: anything can happen. The question is, how likely is this type of accident if the actor uses due care? For all that appears from the record of the case or any other sources of information that we have found, if a tank car is carefully maintained the danger of a spill of acrylonitrile is negligible. If this is right, there is no compelling reason to move to a regime of strict liability, especially one that might embrace all other hazardous materials shipped by rail as well. This also means, however, that the amici curiae who have filed briefs in support of Cyanamid cry wolf in predicting "devastating" effects on the chemical industry if the district court's decision is affirmed. If the vast majority of chemical spills by railroads are preventable by due care, the imposition of strict liability should cause only a slight, not as they argue a substantial, rise in liability insurance rates, because the incremental liability should be slight. The amici have momentarily lost sight of the fact that the feasibility of avoiding accidents simply

Page 1180

by being careful is an argument against strict liability.

        This discussion helps to show why Siegler is indeed distinguishable even as interpreted in New Meadows. There are so many highway hazards that the transportation of gasoline by truck is, or at least might plausibly be thought, inherently dangerous in the sense that a serious danger of accident would remain even if the truckdriver used all due care (though Hawkins and other cases are contra ). Which in turn means, contrary to our earlier suggestion, that the plaintiff really might have difficulty invoking res ipsa loquitur, because a gasoline truck might well blow up without negligence on the part of the driver. The plaintiff in this case has not shown that the danger of a comparable disaster to a tank car filled with acrylonitrile is as great and might have similar consequences for proof of negligence. And to repeat a previous point, if the reason for strict liability is fear that an accident might destroy the critical evidence of negligence we should wait to impose such liability until such a case appears.

        The district judge and the plaintiff's lawyer make much of the fact that the spill occurred in a densely inhabited metropolitan area. Only 4,000 gallons spilled; what if all 20,000 had done so? Isn't the risk that this might happen even if everybody were careful sufficient to warrant giving the shipper an incentive to explore alternative routes? Strict liability would supply that incentive. But this argument overlooks the fact that, like other transportation networks, the railroad network is a hub-and-spoke system. And the hubs are in metropolitan areas. Chicago is one of the nation's largest railroad hubs. In 1983, the latest year for which we have figures, Chicago's railroad yards handled the third highest volume of hazardous-material shipments in the nation. East St. Louis, which is also in Illinois, handled the second highest volume. Office of Technology Assessment, Transportation of Hazardous Materials 53 (1986). With most hazardous chemicals (by volume of shipments) being at least as hazardous as acrylonitrile, it is unlikely--and certainly not demonstrated by the plaintiff--that they can be rerouted around all the metropolitan areas in the country, except at prohibitive cost. Even if it were feasible to reroute them one would hardly expect shippers, as distinct from carriers, to be the firms best situated to do the rerouting. Granted, the usual view is that common carriers are not subject to strict liability for the carriage of materials that make the transportation of them abnormally dangerous, because a common carrier cannot refuse service to a shipper of a lawful commodity. Restatement, supra, Sec. 521. Two courts, however, have rejected the common carrier exception. National Steel Service Center, Inc. v. Gibbons, 319 N.W.2d 269 (Ia.1982); Chavez v. Southern Pacific Transportation Co., 413 F.Supp. 1203, 1213-14 (E.D.Cal.1976). If it were rejected in Illinois, this would weaken still further the case for imposing strict liability on shippers whose goods pass through the densely inhabited portions of the state.

        The difference between shipper and carrier points to a deep flaw in the plaintiff's case. Unlike Guille, and unlike Siegler, and unlike the storage cases, beginning with Rylands itself, here it is not the actors--that is, the transporters of acrylonitrile and other chemicals--but the manufacturers, who are sought to be held strictly liable. Cf. City of Bloomington v. Westinghouse Elec. Corp., supra, 891 F.2d at 615-16. A shipper can in the bill of lading designate the route of his shipment if he likes, 49 U.S.C. Sec. 11710(a)(1), but is it realistic to suppose that shippers will become students of railroading in order to lay out the safest route by which to ship their goods? Anyway, rerouting is no panacea. Often it will increase the length of the journey, or compel the use of poorer track, or both. When this happens, the probability of an accident is increased, even if the consequences of an accident if one occurs are reduced; so the expected accident cost, being the product of the probability of an accident and the harm if the accident occurs, may rise. Glickman, Analysis of a National Policy for Routing Hazardous Materials on Railroads (Department of Transportation, Research and Special Programs Administration, Transportation Systems Center, May 1980). It is easy to see how

Page 1181

the accident in this case might have been prevented at reasonable cost by greater care on the part of those who handled the tank car of acrylonitrile. It is difficult to see how it might have been prevented at reasonable cost by a change in the activity of transporting the chemical. This is therefore not an apt case for strict liability.

        We said earlier that Cyanamid, because of the role it played in the transportation of the acrylonitrile--leasing, and especially loading, and also it appears undertaking by contract with North American Car Corporation to maintain, the tank car in which the railroad carried Cyanamid's acrylonitrile to Riverdale--might be viewed as a special type of shipper (call it a "shipper-transporter"), rather than as a passive shipper. But neither the district judge nor the plaintiff's counsel has attempted to distinguish Cyanamid from an ordinary manufacturer of chemicals on this ground, and we consider it waived. Which is not to say that had it not been waived it would have changed the outcome of the case. The very fact that Cyanamid participated actively in the transportation of the acrylonitrile imposed upon it a duty of due care and by doing so brought into play a threat of negligence liability that, for all we know, may provide an adequate regime of accident control in the transportation of this particular chemical.

        In emphasizing the flammability and toxicity of acrylonitrile rather than the hazards of transporting it, as in failing to distinguish between the active and the passive shipper, the plaintiff overlooks the fact that ultrahazardousness or abnormal dangerousness is, in the contemplation of the law at least, a property not of substances, but of activities: not of acrylonitrile, but of the transportation of acrylonitrile by rail through populated areas. Cropper v. Rego Distribution Center, Inc., 542 F.Supp. 1142, 1149 (D.Del.1982). Natural gas is both flammable and poisonous, but the operation of a natural gas well is not an ultrahazardous activity. Cf. Williams v. Amoco Production Co., 241 Kan. 102, 115, 734 P.2d 1113, 1123 (1987). Whatever the situation under products liability law (section 402A of the Restatement), the manufacturer of a product is not considered to be engaged in an abnormally dangerous activity merely because the product becomes dangerous when it is handled or used in some way after it leaves his premises, even if the danger is foreseeable. City of Bloomington v. Westinghouse Elec. Corp., supra, 891 F.2d at 616-17; Erbrich Products Co. v. Wills, supra. The plaintiff does not suggest that Cyanamid should switch to making some less hazardous chemical that would substitute for acrylonitrile in the textiles and other goods in which acrylonitrile is used. Were this a feasible method of accident avoidance, there would be an argument for making manufacturers strictly liable for accidents that occur during the shipment of their products (how strong an argument we need not decide). Apparently it is not a feasible method.

        The relevant activity is transportation, not manufacturing and shipping. This essential distinction the plaintiff ignores. But even if the plaintiff is treated as a transporter and not merely a shipper, it has not shown that the transportation of acrylonitrile in bulk by rail through populated areas is so hazardous an activity, even when due care is exercised, that the law should seek to create--perhaps quixotically--incentives to relocate the activity to nonpopulated areas, or to reduce the scale of the activity, or to switch to transporting acrylonitrile by road rather than by rail, perhaps to set the stage for a replay of Siegler v. Kuhlman. It is no more realistic to propose to reroute the shipment of all hazardous materials around Chicago than it is to propose the relocation of homes adjacent to the Blue Island switching yard to more distant suburbs. It may be less realistic. Brutal though it may seem to say it, the inappropriate use to which land is being put in the Blue Island yard and neighborhood may be, not the transportation of hazardous chemicals, but residential living. The analogy is to building your home between the runways at O'Hare.

        The briefs hew closely to the Restatement, whose approach to the issue of strict liability is mainly allocative rather than distributive. By this we mean that the emphasis is on picking a liability regime

Page 1182

(negligence or strict liability) that will control the particular class of accidents in question most effectively, rather than on finding the deepest pocket and placing liability there. At argument, however, the plaintiff's lawyer invoked distributive considerations by pointing out that Cyanamid is a huge firm and the Indiana Harbor Belt Railroad a fifty-mile-long switching line that almost went broke in the winter of 1979, when the accident occurred. Well, so what? A corporation is not a living person but a set of contracts the terms of which determine who will bear the brunt of liability. Tracing the incidence of a cost is a complex undertaking which the plaintiff sensibly has made no effort to assume, since its legal relevance would be dubious. We add only that however small the plaintiff may be, it has mighty parents: it is a jointly owned subsidiary of Conrail and the Soo line.

        The case for strict liability has not been made. Not in this suit in any event. We need not speculate on the possibility of imposing strict liability on shippers of more hazardous materials, such as the bombs carried in Chavez v. Southern Pacific Transportation Co., supra, any more than we need differentiate (given how the plaintiff has shaped its case) between active and passive shippers. We noted earlier that acrylonitrile is far from being the most hazardous among hazardous materials shipped by rail in highest volume. Or among materials shipped, period. The Department of Transportation has classified transported materials into sixteen separate classes by the degree to which transporting them is hazardous. Class number 1 is radioactive material. Class number 2 is poisons. Class 3 is flammable gas and 4 is nonflammable gas. Acrylonitrile is in Class 5. 49 C.F.R. Secs. 172.101, Table; 173.2(a).

        Ordinarily when summary judgment is denied, the movant's rights are not extinguished; the case is simply set down for trial. If this approach were followed here, it would require remanding the case for a trial on whether Cyanamid should be held strictly liable. Yet that would be a mistake. The parties have agreed that the question whether the transportation of acrylonitrile through densely populated areas is abnormally dangerous is one of law rather than of fact; and trials are to determine facts, not law. More precisely--for there is no sharp line between "law" and "fact"--trials are to determine adjudicative facts rather than legislative facts. The distinction is between facts germane to the specific dispute, which often are best developed through testimony and cross-examination, and facts relevant to shaping a general rule, which, as the discussion in this opinion illustrates, more often are facts reported in books and other documents not prepared specially for litigation or refined in its fires. Again the line should not be viewed as hard and fast. If facts critical to a decision on whether a particular activity should be subjected to a regime of strict liability cannot be determined with reasonable accuracy without an evidentiary hearing, such a hearing can and should be held, though we can find no reported case where this was done. Some courts treat the question whether an activity is abnormally dangerous as one of fact, and then there must be an evidentiary hearing to decide it. An example is Zero Wholesale Gas Co. v. Stroud, supra, 264 Ark. at 31, 571 S.W.2d at 76. Here we are concerned with cases in which the question is treated as one of law but in which factual disputes of the sort ordinarily resolved by an evidentiary hearing may be germane to answering the question. An evidentiary hearing would be of no use in the present case, however, because the plaintiff has not indicated any facts that it wants to develop through such a hearing.

        Other issues are raised, but need not be decided. The plaintiff's claim that it is entitled to prejudgment interest is premature, since the judgment it obtained must be set aside. The defendant's alternative ground for reversal, that the switching yard assumed the risk of the abnormally dangerous activity by voluntarily participating (through its contract with Conrail) in the transportation of the tank car filled with acrylonitrile, Restatement, supra, Sec. 523; Clark v. Rogers, 137 Ill.App.3d 591, 92 Ill.Dec. 136, 484 N.E.2d 867 (1985), is academic. (The argument is that the switching line was a participant in the activity-

Page 1183

--even a joint tortfeasor--that has become transmogrified into a victim only because it incurred costs to prevent harm to the real victims of the accident.) Similarly, we need not decide whether the comprehensive regulations issued by the Department of Transportation under the Hazardous Materials Transportation Act, 49 U.S.C.App. Secs. 1801 et seq., which prescribe standards for the safe shipment of acrylonitrile by rail and, by requiring that such shipments be expedited, could be thought to authorize shipments via the most convenient rail hub even if it is located in a metropolitan area, would preempt a finding of common law liability premised on the assumption that such shipments should be rerouted. Those regulations are, however, relevant to showing that the shipments in question are not abnormally dangerous, and so support our rejection of strict liability whether or not the regulations are given preemptive effect. New Meadows Holding Co. v. Washington Water Power Co., supra, 102 Wash.2d at 501-02, 687 P.2d at 216; Perkins v. F.I.E. Corp., 762 F.2d 1250, 1265-66 n. 43 (5th Cir.1985).

        The defendant concedes that if the strict liability count is thrown out, the negligence count must be reinstated, as requested by the cross-appeal. We therefore need not consider the plaintiff's argument that the district judge was wrong to throw out the negligence count merely to create an appealable order. But we concede that the strong-arming that he had to do in order to create an appealable judgment casts doubt on the correctness of our previous decision. In refusing to accept the Rule 54(b) appeal, that decision emphasized the factual overlap between the negligence and strict liability counts. More recently we have suggested that factual overlap has been an overemphasized factor in our decisions interpreting and applying the rule. Olympia Hotels Corp. v. Johnson Wax Development Corp., 908 F.2d 1363, 1367 (7th Cir.1990). Perhaps we were thrown off the track in this case by the district judge's mention of the rule. We are now inclined to think that once he entered a judgment giving the plaintiff all the relief that it was seeking, the plaintiff's remaining ground merged in the judgment, which ended the case in the district court and therefore was appealable without the aid of Rule 54(b), even though, should such a judgment be reversed on appeal, the lawsuit would not be over, because the plaintiff had an alternative theory of liability. It is not over now. But with damages having been fixed at a relatively modest level by the district court and not challenged by the plaintiff, and a voluminous record having been compiled in the summary judgment proceedings, we trust the parties will find it possible now to settle the case. Even the Trojan War lasted only ten years.

        The judgment is reversed (with no award of costs in this court) and the case remanded for further proceedings, consistent with this opinion, on the plaintiff's claim for negligence.

        REVERSED AND REMANDED, WITH DIRECTIONS.

9.2.6 Restatement (2d.) § 522: Contributing Actions of Third Persons, Animals and Forces of Nature 9.2.6 Restatement (2d.) § 522: Contributing Actions of Third Persons, Animals and Forces of Nature

Restatement (2d.) § 522: Contributing Actions of Third Persons, Animals and Forces of Nature (link)

One carrying on an abnormally dangerous activity is subject to strict liability for the resulting harm although it is caused by the unexpectable

(a) innocent, negligent or reckless conduct of a third person, or

(b) action of an animal, or

(c) operation of a force of nature.

__

Reproduced with permission, not as part of a Creative Commons license, from The American Law Institute.

9.3 Vicarious Liability 9.3 Vicarious Liability

9.3.1 Ira S. Bushey & Sons, Inc. v. United States 9.3.1 Ira S. Bushey & Sons, Inc. v. United States

Page 167

398 F.2d 167
IRA S. BUSHEY & SONS, INC., Plaintiff-Appellee,
v.
UNITED STATES of America, Defendant-Appellant.
No. 463.
Docket 32086.
United States Court of Appeals Second Circuit.
Argued April 30, 1968.
Decided June 19, 1968.

Page 168

        Philip A. Berns, Washington, D. C., (Edwin L. Weisl, Jr., Asst. Atty. Gen., Joseph P. Hoey, U. S. Atty., Louis E. Greco, Atty. in Charge, New York Office, Admiralty and Shipping Section, Peter M. Klein, Atty., Admiralty and Shipping Section, Dept. of Justice), for the United States, appellant.

        Christopher E. Heckman, New York City, Foley & Martin, New York City, for appellee Ira S. Bushey & Sons, Inc.

        Before WATERMAN, FRIENDLY and KAUFMAN, Circuit Judges.

        FRIENDLY, Circuit Judge:

        While the United States Coast Guard vessel Tamaroa was being overhauled in a floating drydock located in Brooklyn's Gowanus Canal, a seaman returning from shore leave late at night, in the condition for which seamen are famed, turned some wheels on the drydock wall. He thus opened valves that controlled the flooding of the tanks on one side of the drydock. Soon the ship listed, slid off the blocks and fell against the wall. Parts of the drydock sank, and the ship partially did — fortunately without loss of life or personal injury. The drydock owner sought and was granted compensation by the District Court for the Eastern District of New York in an amount to be determined, 276 F.Supp. 518; the United States appeals.1

        Before reaching the merits, we must deal with a procedural issue injected by the district judge, since we would have no jurisdiction of the appeal if his decision of the question was correct. Although Bushey, the drydock owner, had brought its libel under the Public Vessels Act, 46 U.S.C. §§ 781-790, and the United States did not dispute the applicability of that statute save for unsuccessfully contending that Bushey must first present its claim to the Coast Guard Board of Contract Appeals,2 the judge ruled that the damage to the drydock was not "caused by a public vessel of the United States" since "the Tamaroa was not, in a practical sense, a ship causing a `collision,' but an inert mass." 276 F.Supp. at 523. He then proceeded to hold (1) that sovereign immunity was nevertheless waived under the Federal Tort Claims Act, 28 U.S.C. §§ 1346(b) and 2674, the exception in § 2680(d) for "any claim for which a remedy is provided by sections 741-752, 781-790 of Title 46, relating to claims or suits in admiralty against the United States" being inapplicable because, as he believed, no such remedy was provided; (2) that Bushey's pleading would be deemed amended to allege a claim under the Tort Claims Act which it had not asserted; (3) that New York law applied, 28 U.S.C. § 1346 (b); (4) that this, however, was the "whole" law of New York; and (5) that New York would, indeed must, determine liability for a tort on navigable waters in accordance with maritime law. Hence, from a substantive standpoint, the chase was thought to have ended where it began, save for a caveat as to the applicability of distinctive admiralty remedies, notably limitation, an issue not practically important here.

Page 169

        What does remain important is that our powers to review a judgment determining liability but not fixing damages are entirely different if the action was in admiralty as the parties thought or at law as the judge held. If it was the former, we have jurisdiction under 28 U.S.C. § 1292(a) (3) relating to "interlocutory decrees * * * determining the rights and liability of the parties to admiralty cases in which appeals from final decrees are allowed," whereas if it were the latter, we would have none. Beebe v. Russell, 60 U.S. (19 How.) 283, 285, 15 L.Ed. 668 (1856); Catlin v. United States, 324 U.S. 229, 233, 65 S.Ct. 631, 89 L.Ed. 911 (1945).

        We perceive no basis for the court's restrictive reading of the Public Vessels Act. It is no strain whatever on the language to say that a public vessel has "caused" any tort damage for which she is legally responsible. Thomason v. United States, 184 F.2d 105 (9 Cir. 1950). The Act speaks of causing "damage"; it says nothing about causing "collision." Such debate as there has been concerning the scope of the Public Vessels Act relates to claims sounding in contract, see Calmar S. S. Corp. v. United States, 345 U.S. 446, 456 n. 8, 73 S.Ct. 733, 738, 97 L.Ed. 1140 (1953), and even as to that "equivocal language should be construed so as to secure the most harmonious results." Id. Furthermore, and decisively, even if the judge's narrow reading of § 1 of the Public Vessels Act had been warranted, the suit could nevertheless be maintained under § 2 of the Suits in Admiralty Act as amended, 46 U.S.C. § 742. This provides, inter alia, that in cases where if any vessel owned by the United States "were privately owned or possessed, * * * a proceeding in admiralty could be maintained, any appropriate nonjury proceeding in personam may be brought against the United States * * *." — the language of the 1920 statute restricting the Suits in Admiralty Act to merchant vessels having been stricken in 1960, 74 Stat. 912, for the very purpose of avoiding fruitless jurisdictional controversies and bringing all maritime claims against United States vessels into the admiralty jurisdiction of the district courts. See S.Rep. 1894, 86th Cong. 2d Sess., 2 U.S. Code Cong. & Adm. News, p. 3583 et seq.3

        With our appellate jurisdiction under 28 U.S.C. § 1292 (a) (3) thus established, we return to the facts. The Tamaroa had gone into drydock on February 28, 1963; her keel rested on blocks permitting her drive shaft to be removed and repairs to be made to her hull. The contract between the Government and Bushey provided in part:

        (o) The work shall, whenever practical, be performed in such manner as not to interfere with the berthing and messing of personnel attached to the vessel undergoing repair, and provision shall be made so that personnel assigned shall have access to the vessel at all times, it being understood that such personnel will not interfere with the work or the contractor's workmen.

        Access from shore to ship was provided by a route past the security guard at the gate, through the yard, up a ladder to the top of one drydock wall and along the wall to a gangway leading to the fantail deck, where men returning from leave reported at a quartermaster's shack.

        Seaman Lane, whose prior record was unblemished, returned from shore leave a little after midnight on March 14. He had been drinking heavily; the quarter-master made mental note that he was "loose." For reasons not apparent to us or very likely to Lane,4 he took it into his head, while progressing along the gangway wall, to turn each of three large

Page 170

wheels some twenty times; unhappily, as previously stated, these wheels controlled the water intake valves. After boarding ship at 12:11 A.M., Lane mumbled to an off-duty seaman that he had "turned some valves" and also muttered something about "valves" to another who was standing the engineering watch. Neither did anything; apparently Lane's condition was not such as to encourage proximity. At 12:20 A.M. a crew member discovered water coming into the drydock. By 12:30 A.M. the ship began to list, the alarm was sounded and the crew were ordered ashore. Ten minutes later the vessel and dock were listing over 20 degrees; in another ten minutes the ship slid off the blocks and fell against the drydock wall.

        The Government attacks imposition of liability on the ground that Lane's acts were not within the scope of his employment. It relies heavily on § 228(1) of the Restatement of Agency 2d which says that "conduct of a servant is within the scope of employment if, but only if: * * * (c) it is actuated, at least in part by a purpose to serve the master." Courts have gone to considerable lengths to find such a purpose, as witness a well-known opinion in which Judge Learned Hand concluded that a drunken boatswain who routed the plaintiff out of his bunk with a blow, saying "Get up, you big son of a bitch, and turn to," and then continued to fight, might have thought he was acting in the interest of the ship. Nelson v. American-West African Line, 86 F.2d 730 (2 Cir. 1936), cert. denied, 300 U.S. 665, 57 S.Ct. 509, 81 L.Ed. 873 (1937). It would be going too far to find such a purpose here; while Lane's return to the Tamaroa was to serve his employer, no one has suggested how he could have thought turning the wheels to be, even if — which is by no means clear — he was unaware of the consequences.

        In light of the highly artificial way in which the motive test has been applied, the district judge believed himself obliged to test the doctrine's continuing vitality by referring to the larger purposes respondeat superior is supposed to serve. He concluded that the old formulation failed this test. We do not find his analysis so compelling, however, as to constitute a sufficient basis in itself for discarding the old doctrine. It is not at all clear, as the court below suggested, that expansion of liability in the manner here suggested will lead to a more efficient allocation of resources. As the most astute exponent of this theory has emphasized, a more efficient allocation can only be expected if there is some reason to believe that imposing a particular cost on the enterprise will lead it to consider whether steps should be taken to prevent a recurrence of the accident. Calabresi, The Decision for Accidents: An Approach to Non-fault Allocation of Costs, 78 Harv.L.Rev. 713, 725-34 (1965). And the suggestion that imposition of liability here will lead to more intensive screening of employees rests on highly questionable premises, see Comment, Assessment of Punitive Damages Against an Entrepreneur for the Malicious Torts of His Employees, 70 Yale L.J. 1296, 1301-04 (1961).5 The unsatisfactory quality of the allocation of resource rationale is especially striking on the facts of this case. It could well be that application of the traditional rule might induce drydock owners, prodded by their insurance companies, to install locks on their valves to avoid similar incidents in the future,6 while placing the burden on shipowners is much less

Page 171

likely to lead to accident prevention.7 It is true, of course, that in many cases the plaintiff will not be in a position to insure, and so expansion of liability will, at the very least, serve respondeat superior's loss spreading function. See Smith, Frolic and Detour, 23 Colum.L.Rev. 444, 456 (1923). But the fact that the defendant is better able to afford damages is not alone sufficient to justify legal responsibility, see Blum & Kalven, Public Law Perspectives on a Private Law Problem (1965), and this overarching principle must be taken into account in deciding whether to expand the reach of respondeat superior.

        A policy analysis thus is not sufficient to justify this proposed expansion of vicarious liability. This is not surprising since respondeat superior, even within its traditional limits, rests not so much on policy grounds consistent with the governing principles of tort law as in a deeply rooted sentiment that a business enterprise cannot justly disclaim responsibility for accidents which may fairly be said to be characteristic of its activities. It is in this light that the inadequacy of the motive test becomes apparent. Whatever may have been the case in the past, a doctrine that would create such drastically different consequences for the actions of the drunken boatswain in Nelson and those of the drunken seaman here reflects a wholly unrealistic attitude toward the risks characteristically attendant upon the operation of a ship. We concur in the statement of Mr. Justice Rutledge in a case involving violence injuring a fellow-worker, in this instance in the context of workmen's compensation:

        "Men do not discard their personal qualities when they go to work. Into the job they carry their intelligence, skill, habits of care and rectitude. Just as inevitably they take along also their tendencies to carelessness and camaraderie, as well as emotional make-up. In bringing men together, work brings these qualities together, causes frictions between them, creates occasions for lapses into carelessness, and for fun-making and emotional flare-up. * * * These expressions of human nature are incidents inseparable from working together. They involve risks of injury and these risks are inherent in the working environment."

        Hartford Accident & Indemnity Co. v. Cardillo, 72 App.D.C. 52, 112 F.2d 11, 15, cert. denied, 310 U.S. 649, 60 S.Ct. 1100, 84 L.Ed. 1415 (1940); cf. Robinson v. Bradshaw, 92 U.S.App.D.C. 216, 206 F.2d 435 (1953). Judge Cardozo reached a similar conclusion in Leonbruno v. Champlain Silk Mills, 229 N.Y. 470, 128 N.E. 711, 13 A.L.R. 522 (1920). Further supporting our decision is the persuasive opinion of Justice Traynor in Carr v. Wm. C. Crowell Co., 28 Cal.2d 652, 171 P.2d 5 (1946) [employer liable for violent acts of servant against employee of a subcontractor working on the same construction job], followed in Fields v. Sanders, 29 Cal.2d 834, 180 P.2d 684, 172 A.L.R. 525 (1947) [employer liable for violent acts of driver against another driver in traffic dispute].

        Put another way, Lane's conduct was not so "unforeseeable" as to make it unfair to charge the Government with responsibility. We agree with a leading treatise that "what is reasonably foreseeable in this context [of respondeat superior] * * * is quite a different thing from the foreseeably unreasonable risk of harm that spells negligence * *. The foresight that should impel the prudent man to take precautions is not the same measure as that by which he should perceive the harm likely to flow from his long-run activity in spite of all reasonable precautions on his own part. The proper test here bears far more resemblance to that which limits liability for workmen's compensation than to the test for negligence. The employer should be held to expect risks, to the public also,

Page 172

which arise `out of and in the course of' his employment of labor." 2 Harper & James, The Law of Torts 1377-78 (1956). See also Calabresi, Some Thoughts on Risk Distribution and the Law of Torts, 70 Yale L.J. 499, 544 (1961). Here it was foreseeable that crew members crossing the drydock might do damage, negligently or even intentionally, such as pushing a Bushey employee or kicking property into the water. Moreover, the proclivity of seamen to find solace for solitude by copious resort to the bottle while ashore has been noted in opinions too numerous to warrant citation. Once all this is granted, it is immaterial that Lane's precise action was not to be foreseen. Compare, for a similar problem in the law of damages, Petition of Kinsman Transit Co., 338 F.2d 708, 721-726 (2 Cir. 1964), cert. denied, Continental Grain Co. v. City of Buffalo, 380 U.S. 944, 85 S.Ct. 1026, 13 L.Ed.2d 963 (1965), but see also 388 F.2d 821 (2 Cir. 1968). Consequently, we can no longer accept our past decisions that have refused to move beyond the Nelson rule, Brailas v. Shepard S.S. Co., 152 F.2d 849 (2d Cir. 1945), cert. denied, 327 U.S. 807, 66 S.Ct. 970, 90 L.Ed. 1032 (1946); Kable v. United States, 169 F.2d 90, 92 (2 Cir. 1948),8 since they do not accord with modern understanding as to when it is fair for an enterprise to disclaim the actions of its employees.

        One can readily think of cases that fall on the other side of the line. If Lane had set fire to the bar where he had been imbibing or had caused an accident on the street while returning to the drydock, the Government would not be liable; the activities of the "enterprise" do not reach into areas where the servant does not create risks different from those attendant on the activities of the community in general. Cf. Gordon v. United States, 180 F.Supp. 591 (Ct.Cl.1960); Trost v. American Hawaiian S.S. Co., 324 F.2d 225 (2 Cir. 1963), cert. denied, 376 U.S. 963, 84 S.Ct. 1125, 11 L.Ed.2d 981 (1964). We agree with the district judge that if the seaman "upon returning to the drydock, recognized the Bushey security guard as his wife's lover and shot him," 276 F.Supp. at 530, vicarious liability would not follow; the incident would have related to the seaman's domestic life, not to his seafaring activity, cf. Hartford Accident & Indemnity Co. v. Cardillo, supra, 112 F.2d at 17, and it would have been the most unlikely happenstance that the confrontation with the paramour occurred on a drydock rather than at the traditional spot. Here Lane had come within the closed-off area where his ship lay, cf. McConville v. United States, 197 F.2d 680 (2 Cir. 1957), to occupy a berth to which the Government insisted he have access, cf. Restatement, Agency 2d, § 267, and while his act is not readily explicable, at least it was not shown to be due entirely to facets of his personal life. The risk that seamen going and coming from the Tamaroa might cause damage to the drydock is enough to make it fair that the enterprise bear the loss. It is not a fatal objection that the rule we lay down lacks sharp contours; in the end, as Judge Andrews said in a related context, "it is all a question [of expediency,] * * * of fair judgment, always keeping in mind the fact that we endeavor to make a rule in each case that will be practical and in keeping with the general understanding of mankind." Palsgraf v. Long Island R.R. Co., 248 N.Y. 339, 354-355, 162 N. E. 99, 104, 59 A.L.R. 1253 (1928) (dissenting opinion).

        Since we hold the Government responsible for the damage resulting from Lane's turning the wheels, we find it

Page 173

unnecessary to consider Bushey's further arguments that liability would attach in any event because of later inaction of Lane and others on the Tamaroa; and that in libels in rem, whose principles are here applicable by virtue of § 3 of the Suits in Admiralty Act, ordinary rules of agency are inapplicable and the ship is liable for anything ship-connected persons cause it to do. Cf. The China, 74 U.S. (7 Wall.) 53, 19 L.Ed. 67 (1868); Burns Bros. v. Central R.R. of N. J., 202 F.2d 910, 914 (2 Cir. 1953).

        Affirmed.

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Notes:

1. The district court also dismissed a libel by the United States against the drydock owner for damage to the vessel; the United States has not appealed from that ruling.

2. This contention has not been pressed on appeal.

3. The discussion in Gilmore & Black, Admiralty, § 11-11 (1957), which the judge cited, 276 F.Supp. at 523, is thus largely obsolete — a good instance of the compelling need for a revised edition of this indispensable work.

4. Lane disappeared after completing the sentence imposed by a courtmartial and being discharged from the Coast Guard.

5. We are not here speaking of cases in which the enterprise has negligently hired an employee whose undesirable propensities are known or should have been. See Koehler v. Presque-Isle Transp. Co., 141 F.2d 490 (2 Cir.), cert. denied, 322 U.S. 764, 64 S.Ct. 1288, 88 L.Ed. 1591 (1943).

6. The record reveals that most modern drydocks have automatic locks to guard against unauthorized use of valves.

7. Although it is theoretically possible that shipowners would demand that drydock owners take appropriate action, see Coase, The Problem of Social Cost, 3 J.L. & Economics 1 (1960), this would seem unlikely to occur in real life.

8. The Brailas decision relied on Davis v. Green, 260 U.S. 349, 43 S.Ct. 123, 67 L.Ed. 299 (1922), which was applied in St. Louis-San Francisco R. Co. v. Mills, 271 U.S. 344, 46 S.Ct. 520, 70 L.Ed. 979 (1926); Atlantic Coast Line R. Co. v. Southwell, 275 U.S. 64, 48 S.Ct. 25, 72 L.Ed. 157 (1927); and Atlanta & Charlotte Air Line R. Co. v. Green, 279 U.S. 821, 49 S.Ct. 350, 73 L.Ed. 976 (1929). However, we agree with Chief Judge Murrah that the Supreme Court would not follow Davis today, despite its author's eminence. Copeland v. St. Louis-San Francisco R. Co., 291 F.2d 119, 121, 123 (10 Cir. 1961) (dissenting opinion).

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