People v. UNION PACIFIC RAILROAD COMPANY

The People of the State of California filed a civil complaint against the Union Pacific Railroad Company (Union Pacific) and the Chemical Lime Company of Arizona (Chemical Lime) based upon the spillage of substantial quantities of calcium oxide into the environment.

Demurrers were sustained without leave to amend and the complaint was dismissed because the trial court concluded the People’s claims are pre empted in their entirety by the federal Hazardous Materials Transportation Authorization Act of 1994 (HMTA) ( 49 U.S.C. § 5101 et seq.) and the Federal Railroad Safety Authorization Act of 1994 (FRSA) (49 U.S.C. 20101 et seq.). The People appeal from the judgment of dismissal.

We shall reverse the judgment and remand the matter for further proceedings. As we will explain, the state requirement of immediate verbal notification of the spill of calcium oxide and the imposition of a civil penalty for its violation are not preempted by federal law. Also not preempted by federal law is liability for remedial measures, such as abatement, cleanup, assessment and remediation of environmental injury, and consequential damages. However, the imposition of civil penalties for the…