Southern Pacific Transportation Co. v. United States

On April 28, 1973, 18 DODX boxcars owned by the defendant-United States loaded with aerial bombs exploded in the Antelope trainyard of the plaintiff-Southern Pacific Transportation Company (Southern Pacific), near Roseville, California. Since November 7,1977, this court has heard evidence in the resulting Federal Tort Claims Act (FTCA) suit brought by Southern Pacific. This litigation has required and still requires the resolution of a number of difficult legal questions, one of which is now before the court for decision: whether Southern Pacific’s prayer for damages for loss of usé of corporate capital amounts to a prayer for prejudgment interest.

Southern Pacific’s complaint states that, as a result of the explosion,

Complaint at 5. At issue herein is that portion of the total prayer for damages related to the claim for “loss of use of plaintiff’s . . . capital,” namely $4,449,100.00.

Section 2674 of the FTCA provides in part:

The United States contends that Southern Pacific’s claim for damages for “loss of use of capital” constitutes, as a matter of law, a claim for “interest prior to judgment” forbidden by section 2674. Southern Pacific argues that its claim for…