Alabama Great Southern Railroad Company v. Allied Chemical Corporation

THORNBERRY, Circuit Judge:

This diversity case presents troublesome questions of state law. On January 25, 1969, a number of ears of one of appellant-Railroad’s trains derailed in Laurel, Mississippi, allegedly because of the collapse of one of the wheels on a “jumbo tank car.” The derailment caused the tank car and others like it filled with propane gas to explode and burn. A number of people were killed or injured and there was extensive property damage. Appellant immediately began settling claims, thinking itself to be technically liable under Mississippi law. 1 Appellant then filed this…