Federal Circuits, 10th Cir. (December 26, 1991)
Docket number: 88-1749
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U.S. Supreme Court - Schweiker v. Wilson, 450 U.S. 221 (1981)
U.S. Supreme Court - Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487 (1941)
U.S. Supreme Court - Chase Securities Corp. v. Donaldson, 325 U.S. 304 (1945)
U.S. Court of Appeals for the 8th Cir. - Robert Ross v. Beech Aircraft Corp. (8th Cir. 1997)
U.S. Court of Appeals for the 10th Cir. - Mirville v. Mirville (10th Cir. 2001)
U.S. Court of Appeals for the 10th Cir. - Jonathan T. Garrett, Plaintiff-Appellant, v. L.E. Fleming, Warden, United States Penitentiary, Florence, Colorado; John D. Smith, and Six Unidentified Corrections Officers of the Administrative Maximum Security Unit At the United States Penitentiary, Florence, Colorado; D.B. Williams, Lt., in His Individual Capacity; T.B. Smith, Lt., in His Individual Capacity; L. Trujillo, Officer, in His Individual Capacity; J. Baltazar, Officer, in His Individual Capacity; D. Pierre Ii, Officer, in His Individual Capacity; R. Rau, Capt., in His Individual Capacity; and Givens, Officer (First Name Unknown), in His Individual Capacity, Defendants-Appellees., 362 F.3d 692 (10th Cir. 2004) Plaintiff-Appellant, v. L.E. Fleming, Warden, United States Penitentiary, Florence, Colorado; John D. Smith, and Six Unidentified Corrections Officers of the Administrative Maximum Security Unit At the United States Penitentiary, Florence, Colorado; D.B. Williams, Lt., in His Individual Capacity; T.B. Smith, Lt., in His Individual Capacity; L. Trujillo, Officer, in His Individual Capacity; J. Baltazar, Officer, in His Individual Capacity; D. Pierre Ii, Officer, in His Individual Capacity; R. Rau, Capt., in His Individual Capacity; and Givens, Officer (First Name Unknown), in His Individual Capacity, Defendants-Appellees.
U.S. Court of Appeals for the 2nd Cir. - Emil Aslanidis, Plaintiff-Appellant, v. United States Lines, Inc., United States Lines (S.A.), Inc., United States Lines, Inc., Reorganization Trust, United States Lines (S.A.), Inc., Reorganization Trust, Defendants-Appellees. Emil Aslanidis, Plaintiff-Appellant, v. Brandeis Intsel & Co., Inc., Brandeis Division of Pechiney World Trade Usa, Inc., John Doe I, John Doe Ii, John Doe Iii, Samancor, Ltd., South African Container Depots, Ltd. and Rennies Freight Services, Ltd., Defendants-Appellees. Brandeis Intsel & Co., Inc. and Brandeis Division of Pechiney World Trade Usa, Inc., Third-Party-Plaintiffs, v. Samancor, Ltd., South African Container Depots, Ltd. and Rennies Freight Services, Ltd., Third-Party-Defendants., 7 F.3d 1067 (2nd Cir. 1993) Plaintiff-Appellant, v. United States Lines, Inc., United States Lines (S.A.), Inc., United States Lines, Inc., Reorganization Trust, United States Lines (S.A.), Inc., Reorganization Trust, Defendants-Appellees. Emil Aslanidis, Plaintiff-Appellant, v. Brandeis Intsel & Co., Inc., Brandeis Division of Pechiney World Trade Usa, Inc., John Doe I, John Doe Ii, John Doe Iii, Samancor, Ltd., South African Container Depots, Ltd. and Rennies Freight Services, Ltd., Defendants-Appellees. Brandeis Intsel & Co., Inc. and Brandeis Division of Pechiney World Trade Usa, Inc., Third-Party-Plaintiffs, v. Samancor, Ltd., South African Container Depots, Ltd. and Rennies Freight Services, Ltd., Third-Party-Defendants.
James F. Leggett of Leggett & Kram, Tacoma, Wash. (Charles W. Harris of Curfman, Harris, Borniger & Rose, Wichita, Kan., with him on the brief), for plaintiffs-appellants.
David S. Wooding of Martin, Pringle, Oliver, Wallace & Swartz (William L. Oliver, Jr., with him on the brief), for defendant-appellee Beech Aircraft Corp.Michael M. Lane of McCullough, Campbell & Lane, Chicago, Ill. (Patrick M. Graber and Michael D. Hultquist of McCullough, Campbell & Lane, Chicago, Ill., and Ronald P. Williams of Morrison, Hecker, Curtis, Kuder & Parrish, Wichita, Kan., with him on the brief), for defendant-appellee Rupert Industries.Before HOLLOWAY, SEYMOUR and EBEL, Circuit Judges.HOLLOWAY, Circuit Judge.This is an appeal by plaintiffs-appellants Prince Alexander, Jr., a personal representative; by L.M. Demko; and by Thomas W. Webber, Sr., also a personal representative, from an order of the United States District Court for the District of Kansas, granting defendant-appellee Beech Aircraft Corporation's (Beech) motion for summary judgment and defendant-appellee Rupert Industries' (Rupert) motion to dismiss. These rulings were made in a wrongful death and personal injury action arising from a tragic plane crash in Indiana. The rulings were premised on the Indiana products liability statute of repose, and other Indiana statutes of limitations and wrongful death act limitations, because the air crash giving rise to the claims asserted in this suit occurred there.* On February 18, 1984, Prince Alexander Sr., a United States Army aviator, rented a model A23A Beechcraft Musketeer from Pat Kesler in Alabama, for a flight to Hammond, Indiana. Passengers on the flight with Alexander included R.A. Webber and L.M. Demko, also United States Army personnel. Alexander had the appropriate Federal Aviation Administration (FAA) license to operate the aircraft and he had been given a check ride in the plane by Kesler. During the flight to Indiana the aircraft ran out of gas. Alexander attempted to land the plane without engine power at a nearby airfield to which he was directed by personnel at the Evansville, Indiana, radar controller station. The plane crashed on approach to the airport, killing Alexander and front seat passenger Webber and seriously injuring rear seat passenger Demko.The airplane was manufactured in 1967 by Beech and was sold and delivered to Wiles-Holloway, Inc. of Baton Rouge, Louisiana, in June of that year. I R. Doc. 56, Ex. A. In December 1971 the plane was sold to Pat Kesler, who owned the aircraft at the time of the accident on February 18, 1984. This action against Beech for wrongful deaths and for the personal injuries of Demko, asserting theories of strict liability in tort and negligence, was filed on February 13, 1986, in the United States District Court for the District of Kansas. The original diversity complaint named Beech and Does I through X inclusive as defendants.1 On July 10, 1986, plaintiffs were granted leave to file their first amended complaint, which added Rupert, a division of C & J Associates, Inc., manufacturer of the seatbelts on the plane, as a defendant. The amended complaint was filed on August 26, 1986, averring strict liability and negligence claims against Beech, Rupert and Does II through X, inclusive, Rupert being substituted for Doe I. The amended complaint also alleged a breach of warranty by Rupert with respect to the strength of the seat belts.Beech filed a motion for summary judgment on the theory that the plaintiffs' claims were barred by the ten-year Indiana statute of repose for products liability actions, Ind.Code Ann. § 34-4-20A-5 (Burns 1986).2 Rupert filed a motion to dismiss based on the proposition that the plaintiffs' claims were barred by the two-year limitation in the Indiana personal injury statute of limitations, Ind.Code Ann. § 34-1-2-2 (Burns 1986), and the two-year Indiana condition on the bringing of wrongful death actions, Ind.Code Ann. § 34-1-1-2 (Burns 1986). The motions of Beech and Rupert were granted by the district court.The judge held that the choice of law rules of Kansas, as the forum state, should be applied, Klaxon Co. v. Stentor Electric Manufacturing Co., Inc., 313 U.S. 487, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941); and that the law of the Kansas forum as to the limitation of actions governs, including the Kansas borrowing statute, Kan.Stat.Ann. § 60-516. That statute provides:Actions originating in another state. Where the cause of action has arisen in another state or country and by the laws of the state or country where the cause of action arose an action cannot be maintained thereon by reason of lapse of time, no action can be maintained thereon in this state except in favor of one who is a resident of this state and who has held the cause of action from the time it accrued.Pursuant to the borrowing statute the district judge applied the Indiana statute of repose and sustained the motion of Beech for summary judgment. Again under the borrowing statute, he applied the Indiana two-year limitation on personal injury actions and the two-year Indiana condition on the bringing of wrongful death actions and sustained the motion to dismiss of Rupert. Plaintiffs moved for reconsideration of these rulings and their motion was denied. This appeal followed, and the plaintiffs-appellants make numerous arguments challenging the correctness of the rulings in favor of Beech and Rupert. We turn now to those contentions.IIA.First, plaintiffs argue that the Pilot/Operator Manual or Handbook of Beech dated December 1979 was a replacement part; it was defective and misrepresented and overstated the amount of usable fuel to the pilot;3 the handbook is considered part of the aircraft for FAA certification purposes;4 the furnishing of the 1979 defective handbook recommenced the running of the ten-year Indiana statute of repose; and the proximate causation of the accident by the handbook was a fact question requiring expert testimony and one inappropriate for summary judgment, citing Black v. Henry Pratt Co., 778 F.2d 1278 (7th Cir.1985), inter alia.In connection with their strenuous arguments about inaccurate indications of usable fuel remaining, the plaintiffs point to a portion of the record of messages transmitted between the Beechcraft plane, N3639Q, and the Indianapolis ARTCC Evansville Radar Controller, quoted in plaintiffs' memorandum in opposition to Beech's motion for summary judgment, I R. Doc. 65 at 2:ZULU Time Source Transmission1036:15 EVV 39Quebec the computer shows that it's going to be about 35minutes flying time to Evansville Airport; are you goingto have enough, uh, fuel to get there.1036:26 39Q This is 39Quebec affirmative.1038:35 39Q 39Quebec out of gas, going down this time.Plaintiffs rely on the transmission as evidence that the misperception of remaining fuel was critical in the causation of the crash.We agree with the district judge that plaintiffs cannot recast their allegations of Beech's failure to warn properly in the handbook into a breach of duty regarding replacement parts. The Black opinion treated seats, bearings, packing, and glue of a valve mechanism as replacement parts and reasoned that since they were furnished within the ten-year limit of the statute of repose, if they were unreasonably dangerous and were the proximate cause of the injuries complained of, then the complaint was timely. However, Black held that the replacement parts were not defective and were not related to the malfunctioning of the chain mechanism involved in the accident; thus plaintiff had no cause of action as to such parts. Moreover, any action based on the original delivery of the valves in 1967 was barred by the ten-year limitation in the statute of repose. 778 F.2d at 1283-84.There is, of course, a different case presented here in that the allegedly defective handbook was related to the allegations of plaintiffs that the aircraft's "fuel gauges were not accurate, the fuel tanks trapped fuel, the fuel system had a propensity to dump fuel overboard...." First Amended Complaint, I R. Doc. 32 at 4.5 Nevertheless, we must agree with the district judge here that plaintiffs have not explained or offered evidence that the instructions or manuals served as "replacement parts." Memorandum and Opinion at 16. In the context of products liability concepts, we are not persuaded that the handbook was a "replacement part." Instead we feel the handbook and such instructions should be viewed as part of the evidence proffered by plaintiffs which bears on a failure to warn theory against Beech.We are persuaded by the reasoning of the Sixth Circuit in Kochins v. Linden-Alimak, Inc., 799 F.2d 1128, 1134-35 (6th Cir.1986). There the court upheld a summary judgment for the defendant, a manufacturer of a personnel hoist, on the basis of a ten-year statute of repose of Tennessee, generally similar to that of Indiana. The plaintiffs there argued that their suit was not time barred because the defendants had sold TVA an instruction manual for the hoist in 1980, which was a "product" as defined in the Tennessee Act, making the suit timely. The Sixth Circuit referred to the statutory definitions in the Tennessee Products Liability Act, which included a definition that " '[p]roduct' means any tangible object or goods produced." The court stated thatWe do not think that the Tennessee Supreme Court would interpret the word 'product,' as defined and used in the statutory provisions quoted above, to include the instruction manual furnished to TVA in 1980. Although the definition of a 'product liability action' includes actions based upon the 'warning' or 'instruction ... of any product,' Tenn.Code Ann. § 29-28-102(6), and, while a failure to warn or provide proper instructions are theories upon which a plaintiff may proceed, the instructions themselves are not a 'product' as defined by the act.799 F.2d at 1135 (emphasis added).We note that the Indiana Products Liability Act contains a definition that " 'product' means any item or good that is personalty at the time it is conveyed by the seller to another party. It does not apply to a transaction that, by its nature, involves wholly or predominantly the sale of a service rather than a product." Ind.Code Ann. § 34-4-20A-2 (Burns 1986). We feel, as the Sixth Circuit, that the instructions themselves are not a product as defined by the act. Therefore, the issuance of the instruction page in December 1979 did not recommence the running of the statute of repose.We feel that the essence of plaintiffs' claims regarding the Beechcraft A23A Musketeer fuel system is failure to warn of a dangerous condition which existed at the time of the original manufacture and delivery of the aircraft in 1967, primarily that the A23A handbook, placards and fuel gauges did not accurately reflect the amount of usable fuel remaining in the fuel tanks. Plaintiffs attempt to assert this as a replacement part theory by claiming that Beech wrongfully failed to classify installation of decals and placards on usable fuel as mandatory and by issuing a revised statement in the owners/pilot's handbook which did not adequately warn readers of the actual usable fuel capacity of the aircraft.6Plaintiffs are not claiming that either the revised handbook or the fuel gauge correction decal kit created a more dangerous condition than that which existed at the time of the aircraft's original manufacture and delivery. In fact, the fuel gauge and placard correction kit was not installed on the aircraft flown by Alexander, Sr.7 And the replacement manual page, while confusing and possibly misleading, attempted to correct statements in the earlier manual. The pertinent December 1979 sheet from the new manual with the statements about usable fuel, and Service Instruction 0624-281 on replacarding to increase the indication of the amount of unusable fuel, are attached as Appendix A to this opinion.The district judge pointed out that such a claim of failure to warn has been held by the Indiana Supreme Court to come within the Indiana products liability statute of repose. In Dague v. Piper Aircraft Corporation, 275 Ind. 520, 418 N.E.2d 207 (1981), the plaintiff argued that even if it were found that the statute of repose barred her other claims, her claim of failure to warn of the product's dangerous nature showed a breach of a continuing duty and would not be so barred. The Indiana Court disagreed:[W]e hold, however, that section five likewise bars plaintiff's cause of action based on a negligent failure to warn the user of the aircraft's alleged defect....Section two of the act (Burns Ed. § 34-4-20A-2) defines the key terms used in the act. Thus a 'product liability action' includes 'all actions brought for or on account of personal injury, disability, disease, death or property damage caused by or resulting from, the manufacture, construction or design of any product.' Plaintiff asserts that the duty to warn is a general one and is in no way peculiar to the law of products liability. Therefore, her argument runs, because the legislature did not specifically refer to claims resulting from the alleged failure of the manufacturer or seller to warn a potential customer or user of a product's latently defective nature, then it must be presumed that the legislature did not intend this Act to apply to such an action.We are not persuaded by this argument ... it seems clear that the legislature intended that the Act govern all product liability actions, whether the theory of liability is negligence or strict liability in tort....... [A]n action for damages resulting from the alleged failure of a manufacturer or seller to warn a user of his product's latently defective nature is certainly a product liability action based on a theory of negligence, and, ultimately, is one in which the claim is made that the damage was caused by or resulted from the manufacture, construction or design of the product. 418 N.E.2d at 211-12 (emphasis added)In sum, we agree with the district court's reasoning on the lack of merit in the plaintiffs' "replacement part" theory and their related arguments concerning the operator's handbook and the service instructions. In these arguments the plaintiffs are asserting a claim of failure to warn concerning conditions in the aircraft as manufactured and delivered in 1967. The plaintiffs' underlying complaint concerns that aircraft, its fuel management and indications on its gauges of remaining fuel. The Indiana Products Liability Act's statute of repose, as construed by the Indiana courts, bars recovery on such claims.B.Plaintiffs maintain further that the public policy of Kansas, the forum jurisdiction, prevents the application of the Indiana statute of repose. They argue that there was fraud by Beech in not warning purchasers and users of the aircraft of either the faulty fuel gauges and placards or of the inadequate seat belts; that under Kansas public policy the running of the statute of repose was tolled until discovery of such defects following the accident; and that there is no statute of repose in Kansas which is similar to that of Indiana. Thus, plaintiffs say that Kansas public policy precludes the application of the Indiana statute of repose.At the outset, we note that while Kansas does not have a statute of repose identical to that of Indiana, see Ind.Code Ann. § 34-4-20A-1-5 (Burns 1986), it does have a statute of repose effective after the expiration of a product's "useful safe life." However, this Kansas statute has an exception where the seller misrepresents facts about the product or conceals information about it so as to cause harm to the plaintiff. See Kan.Stat.Ann. § 60-3303 (1983).8When the conflict of laws rule of a forum refers to the law of another jurisdiction, there is a public policy exception to the application of foreign law which is contrary to the strong public policy of the forum. This is a corollary of the principle that "[n]o action will be entertained on a foreign cause of action, the enforcement of which is contrary to the strong public policy of the forum." Restatement (Second) of Conflict of Laws § 90. The Restatement's comment stresses that this rule has a "narrow scope of application"; that "[a] mere difference between the local law rules of the two states will not render the enforcement of a claim created in one state contrary to the public policy of the other"; and that "[a]ctions should rarely be dismissed because of the rule of this section." Id. cmt. a, b, c.We cannot agree with plaintiffs' argument that Kansas public policy bars the application of the Indiana statute of repose. We agree with the application by the district court of the Indiana Products Liability Act statute of repose, although we follow a different process of reasoning. The judge properly concluded that in such a tort action, the Kansas courts apply the lex loci delicti, here the law of Indiana, where the wrong and injury occurred. Hawley v. Beech Aircraft Corp., 625 F.2d 991, 993 (10th Cir.1980). We are persuaded that the Indiana statute of repose should be applied as substantive law which governs the viability of the plaintiffs' cause of action.9 We agree with the courts which have held that such statutes of repose are substantive. Thornton v. Cessna Aircraft Co., 886 F.2d 85, 87 (4th Cir.1989); Goad v. Celotex Corp., 831 F.2d 508, 511 (4th Cir.1987), cert. denied,Try vLex for FREE for 3 days
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