The City of Flagstaff, a Municipal Corporation v. The Atchison, Topeka and Santa Fe Railway Company, a Foreign Corporation

The question before us is whether a municipality which commits police, fire, and other relief measures to a major emergency may recover the costs of those services from the tortfeasor who caused the accident. This diversity case requires our interpretation of Arizona law, where the issue appears to be one of first impression. If a later case presents the same question to Arizona’s own courts, their resolution will be definitive, not ours; but having the case before us, we must decide it as we think the Arizona courts would. Edwards v. American Home Assurance Co., 361 F.2d 622 (9th Cir.1966). We conclude that the action brought by the municipality is not recognized by Arizona law and that specific authorization for the recovery sought must come from a legislative authority, not the courts. The district court reached the same conclusion. We affirm its order granting summary judgment for the defendants below.

On March 31, 1981, four railroad tank cars carrying liquified petroleum gas derailed near Flagstaff, Arizona. The derailed train was operated by the Atchison, Topeka, and Santa Fe Railway Company, the principal defendant below. To guard the public against hazard from leaks or…