KIM R. GIBSON District Judge.
Pending before the Court is the Motion for Summary Judgment ("Motion") filed by Defendants MTD Products, Inc., MTD Products Limited, MTD LLC, MTD Holdings, Inc., and MTD Consumer Group, Inc. (together "MTD") (ECF No. 26.) The Motion has been fully briefed (see ECF Nos. 27, 35, 37) and is ripe for disposition. For the reasons stated below, the Court will
The Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1332. The Court observes that Plaintiff omitted from his Amended Complaint any assertion that venue is proper before this Court. (See ECF No. 11.) However, MTD waived its defense of improper venue by failing to include it in its responsive pleading. (ECF No. 12.) See Fed. R. Civ. P. 12(h)(1)(B). Accordingly, venue is proper.
The case arises from injuries that Plaintiff sustained while handling a snow thrower manufactured by MID. (ECF No. 11 at 2.) Plaintiff alleges that, on or about January 19, 2015, when he was seating the bead of a tire onto the snow thrower rim and/or inflating the tire, the rim failed and burst, causing Plaintiff to suffer severe injuries. (Id. at 2-3.)
The Court accepts as true the facts in the following two paragraphs for the sole purpose of deciding the instant Motion for Summary Judgment:
1. Plaintiff is a Pennsylvania resident. (ECF No. 33 at ¶ 1.) Plaintiff purchased the snow thrower in Pennsylvania (Id. at ¶ 6) and only ever used it in Pennsylvania. (Id. at ¶ 7.) Plaintiff's injury occurred in Pennsylvania. (Id at ¶ 8.)
2. MID has manufacturing, warehouse, and distribution facilities in four states and several foreign countries. (ECF No. 28 at ¶ 13.) MID is incorporated in Delaware and has its principal place of business in Ohio. (Id. at ¶ 5.) The snow thrower that injured Plaintiff was engineered, designed, manufactured, and tested by Defendant MID in its Valley City, Ohio plant. (Id. at ¶¶ 6-11.) MID produced the snow thrower in question on September 8, 2004, and shortly thereafter sold it to Lowe's, a national retailer, FOB MID's manufacturing facility in Ontario, Canada. (Id. at ¶ 12.) Upon receiving the snow thrower, Lowe's shipped it to its distribution center located in Minersville, Pennsylvania, in September 2004. (Id.)
Plaintiff filed his Complaint before this Court on January 10, 2017. (ECF No. 1.) Plaintiff subsequently amended his Complaint on February 2, 2017. (ECF No. 11.) Plaintiff asserts two claims against MTD: (1) strict products liability (Count I) and (2) negligence (Count II). (Id. at 3-8.) MID filed the instant Motion for Summary Judgment on April 4, 2017. (ECF No. 26.)
MID asserts that Pennsylvania's choice of law rules mandate that Ohio law be applied in this case. (ECF No. 27 at 2.) Under§ 2305.10(C)(1) of Ohio's Revised Code, Ohio's statute of repose bars a products liability claim brought more than ten years after the product was delivered to its first purchaser, subject to exceptions that do not apply here.
Plaintiff contends that Pennsylvania's choice of law rules require that the Court apply Pennsylvania law. (ECF No. 32 at ¶ 3; ECF No. 35.) Both parties agree that Pennsylvania law does not contain a statute of repose that would prevent Plaintiff from asserting his claims against MTD. (ECF No. 33at13-14; ECF No. 27 at 5.) Plaintiff asserts that this Court should deny MID's Motion for Summary Judgment because Plaintiff's claims are not barred under Pennsylvania law. (ECF No. 35 at 6-19.) Alternatively, Plaintiff asks this Court to preclude MTD from arguing that Ohio law applies under the doctrine of judicial estoppel; Plaintiff avers that in similar litigation MID previously took the inconsistent position that the law of other states should apply rather than the law of Ohio. (Id. at 19-23.)
"Summary judgment is appropriate only where . . . there is no genuine issue as to any material fact . . . and the moving party is entitled to judgment as a matter of law." Melrose, Inc. v. Pittsburgh, 613 F.3d 380, 387 (3d Cir. 2010) (quoting Ruehl v. Viacom, Inc., 500 F.3d 375, 380 n. 6 (3d Cir. 2007)); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986); Fed. R. Civ. P. 56(a). Issues of fact are genuine "if the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986); see also McGreevy v. Stroup, 413 F.3d 359, 363 (3d Cir. 2005). Material facts are those that will affect the outcome of the trial under governing law. Anderson, 477 U.S. at 248. The Court's role is "not to weigh the evidence or to determine the truth of the matter, but only to determine whether the evidence of record is such that a reasonable jury could return a verdict for the nonmoving party." Am. Eagle Outfitters v. Lyle & Scott Ltd., 584 F.3d 575, 581 (3d Cir. 2009). "In making this determination, `a court must view the facts in the light most favorable to the nonmoving party and draw all inferences in that party's favor.'" Farrell v. Planters Lifesavers Co., 206 F.3d 271, 278 (3d Cir.2000) (quoting Armbruster v. Unisys Corp., 32 F.3d 768, 777 (3d Cir. 1994).
The moving party bears the initial responsibility of stating the basis for its motion and identifying those portions of the record that demonstrate the absence of a genuine issue of material fact. Celotex, 477 U.S. at 323. If the moving party meets this burden, the party opposing summary judgment "may not rest upon the mere allegations or denials" of the pleading, but "must set forth specific facts showing that there is a genuine issue for trial." Saldana v. Kmart Corp., 260 F.3d 228, 232 (3d Cir. 2001) (quoting Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 n. 11, (1986)). "For an issue to be genuine, the nonmovant needs to supply more than a scintilla of evidence in support of its position-there must be sufficient evidence (not mere allegations) for a reasonable jury to find for the nonmovant." Coolspring Stone Supply v. Am. States Life Ins. Co., 10 F.3d 144, 148 (3d Cir.1993); see also Podobnik v. U.S. Postal Serv., 409 F.3d 584, 594 (3d Cir. 2005) (noting that a party opposing summary judgment "must present more than just bare assertions, conclusory allegations or suspicions to show the existence of a genuine issue.") (internal quotation marks omitted).
"[T]he choice of law rules of the forum state, Pennsylvania, apply when a federal court is sitting in diversity." Specialty Surfaces Int'l, Inc. v. Cont'l Cas. Co., 609 F.3d 223, 229 (3d Cir. 2010) (citing Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487, 496 (1941)).
This Court sits in diversity in the Commonwealth of Pennsylvania. Therefore, Pennsylvania's choice of law rules apply.
"[T]he first step in a choice of law analysis under Pennsylvania law is to determine whether a conflict exists between the laws of the competing states." Auto-Owners Ins. Co. v. Stevens & Ricci Inc., 835 F.3d 388, 404 (3d Cir. 2016) (quoting Budtel Assocs., LP v. Cont'l Cas. Co., 915 A.2d 640, 644 (Pa. Super. Ct. 2006)). "`If [the] two jurisdictions' laws are the same, then there is no conflict at all, and a choice of law analysis is unnecessary.'" Pac. Employers Ins. Co. v. Glob. Reinsurance Corp. of Am., 693 F.3d 417, 432 (3d Cir. 2012) (quoting Hammersmith v. TIC Ins. Co., 480 F.3d 220, 230 (3d Cir. 2007)). "If there are no relevant differences between the laws of the two states, the court need not engage in further choice-of-law analysis, and may instead refer to the states' laws interchangeably." Auto-Owners Ins. Co., 835 F.3d at 404.
To the best knowledge of this Court and the parties, Pennsylvania law does not provide for a statute of repose in product liability actions. (See ECF No. 33 at 13-14; ECF No. 27 at 5.) By contrast, Ohio recognizes a ten-year statute of repose in products liability cases. Ohio Rev. Code § 2305.10(C)(1). Therefore, a conflict exists between the laws of the two jurisdictions.
"In the case that a conflict does exist, the court proceeds to the second step of the analysis: characterizing the conflict as `true,' `false,' or `unprovided for.'" Stanford v. Nat'l Grange Mut. Ins. Co., No. CV 11-7144, 2014 WL 12607743, at *1 (E.D. Pa. Feb. 28, 2014) (citing Hammersmith, 480 F.3d at 230).
"A `true' conflict exists where both states have an interest in applying their own law." Atl. Pier Assocs., LLC v. Boardakan Rest. Partners, 647 F.Supp.2d 474, 487 (E.D. Pa. 2009) (citing Hammersmith, 480 F.3d at 229). If a "true" conflict exists, the Court must determine "which state has the greater interest in the application of its law" and must apply that state's law. Cipolla v. Shaposka, 439 Pa. 563, 566 (1970).
A "false" conflict exists "`[i]f only one jurisdiction's governmental interests would be impaired by the application of the other jurisdiction's law . . .'". Wolfe v. McNeil-PFC Inc., 703 F.Supp.2d 487, 492 (E.D. Pa. 2010) (quoting Lacey v. Cessna Aircraft Co., 932 F.2d 170, 187 (3d Cir. 1991)). When confronted with a "false" conflict, "the court must apply the law of the state whose interests would be harmed if its law were not applied." Lacey, 932 F.2d at 187.
"The situation is `unprovided for' when neither state has an interest in applying its own law." Atl. Pier Assocs., 647 F. Supp. 2d at 487 (citing Hammersmith, 480 F.3d at 229). When confronted with an "unprovided for" situation, the Court must apply lex loci delicti (the law of the place of the wrong). Budget Rent-A-Car Sys., Inc. v. Chappell, 407 F.3d 166, 170 (3d Cir. 2005).
A true conflict exists here. Pennsylvania clearly has an interest in providing redress for Pennsylvania citizens injured by products they purchased and used within Pennsylvania. The fact that Pennsylvania has not adopted a statute of repose indicates that the Pennsylvania legislature believes that the interest in indefinitely protecting consumers from faulty products outweighs the interest in insulating manufacturers from lawsuits brought long after they produced the injurious product. Similarly, Ohio has a strong interest in protecting Ohio manufacturers from product liability lawsuits brought more than ten years after the injurious product was first sold as evidenced by the ten-year statute of repose codified in Ohio Rev. Code § 2305.10(C)(1). Because both jurisdictions have an interest in their laws being applied to the instant dispute, this is neither a "false" conflict nor an "unprovided for" situation, but rather a "true" conflict.
The Court rejects Plaintiff's assertion that this case represents a "false" conflict because Ohio does not have an interest in its law being applied in this case. (ECF No. 35at11-14.) Plaintiff argues that Ohio enacted its statute of repose out of a concern that evidence and witnesses would be difficult to locate more than ten years after a product was initially sold. (Id. at 13.) Plaintiff states that Ohio does not have an interest in its statute of repose being applied here because evidence and witnesses are abundant in this case as MTD has been sued numerous times in the last decade by other consumers injured by the same model of snow thrower that injured Plaintiff. (Id.) While Plaintiff's weak argument does not merit detailed discussion, the Court merely notes that Plaintiff underappreciated Ohio's interest in this case because he failed to recognize the many rationales beyond the unavailability of evidence and witnesses that motivated Ohio to enact its statute of repose.
As noted above, "[i]f a true conflict exists, the Court must then determine which state has the `greater interest in the application of its law.'" Harris v. Kellogg, Brown & Root Servs., Inc., 151 F.Supp.3d 600, 611 (W.D. Pa. 2015) (quoting Cipolla v. Shaposka, 439 Pa. 563, 267 A.2d 854, 856 (1970)). "To do so, courts in Pennsylvania apply a hybrid contacts/interest analysis." Rose, 2017 WL 3008747, at *3 (citing Taylor v. Mooney Aircraft Corp., 430 F.Supp.2d 417, 421 (E.D. Pa. 2006)). The hybrid approach is "a combination of the `approaches of both [the] Restatement II (contacts establishing significant relationships) and [the] `interests analysis' (qualitative appraisal of the relevant States' policies with respect to the controversy"). Hammersmith, 480 F.3d at 231 (quoting Melville v. Am. Home Assur. Co., 584 F.2d 1306, 1311 (3d Cir. 1978)). "This analysis requires more than a `mere counting of contacts'" and requires that the Court "weigh the contacts on a qualitative scale according to their relation to the policies and interests underlying the [particular] issue." Atl. Pier Assocs., 647 F. Supp. 2d at 487 (citing Hammersmith, 480 F.3d at 231) (internal citations omitted).
The Restatement (Second) of Conflict of Laws ("Restatement") governs the "significant relationships" inquiry. In personal injury cases sounding in negligence and strict liability,
Restatement (Second) of Conflict of Laws§ 146 (1971). Under§ 6 of the Restatement, the factors relevant to the choice of the applicable rule of law include:
Id. at § 6. When evaluating the principles provided by § 6, the Court must take into account the following contacts:
Id. at§ 145.
In addition to classifying the relevant contacts to determine which jurisdiction has a more significant relationship, the Court also engages in an "interests analysis;" the Court "must consider the `interests and policies' that may be validly asserted by each jurisdiction." Hammermill, 480 F.3d at 235 (quoting Melville, 584 F.2d at 1311).
An examination of the relevant Restatement factors indicates that Pennsylvania's relationship to this case is more significant than that of Ohio. Because the Restatement advises that the contacts listed in§ 145 inform the "significant relationship" analysis under§ 6, the Court will begin by evaluating each jurisdiction's contacts under § 145. This analysis reveals that Pennsylvania's contacts are qualitatively more significant and meaningful than those of Ohio.
It is undisputed that Plaintiff was injured in Pennsylvania. (ECF No. 33at18.) Therefore, § 145(a) weighs in favor of applying Pennsylvania law.
MID has presented evidence that the snow thrower wheel that injured Plaintiff was manufactured in Ohio by a MID subsidiary. (ECF No. 28 at ¶ 19; ECF No. 28-1 at ¶ 18.) Plaintiff has not come forward with any evidence to dispute MTD's claim. Therefore,§ 145(b) weighs in favor of applying Ohio law.
Plaintiff has robust connections to Pennsylvania. Plaintiff is a Pennsylvania resident. (ECF No. 33 at ¶ 1.) Plaintiff purchased the snow thrower in Pennsylvania (id. at ¶ 6), only ever used it in Pennsylvania (id. at ¶ 7), and sustained his injury in Pennsylvania. (Id at ¶ 8.) It is hard to imagine how Plaintiff's relationship to Pennsylvania could be stronger.
MID's relationship to Ohio is less substantial. While MID maintains its principal place of business in Ohio (ECF No. 28 at ¶ 5) and has manufacturing, warehouse, and distribution facilities in Ohio (ECF No. 18-1 at ¶ 4), MID is incorporated in Delaware (id. at ¶ 3), and has manufacturing, warehouse, and distribution facilities in three other states (Kentucky, Tennessee, and Mississippi), Mexico, and an unspecified number of "overseas" countries. (Id. at ¶ 4.) When considered in the broader context of MTD's contacts with other jurisdictions inside and outside of the United States, MID's contacts with Ohio are diluted.
The Court concludes that Plaintiff's domestic contacts with Pennsylvania are qualitatively more substantial than MTD's business contacts with Ohio. Hammersmith, 480 F.3d at 231. Accordingly,§ 145(c) weighs in favor of applying Pennsylvania law.
The parties do not have a strong relationship. While tenuous, this relationship is centered in Pennsylvania. The Court rejects MTD's assertion that the parties have no relationship whatsoever.
Because the parties' tenuous relationship is centered in Pennsylvania, § 145(d) weighs slightly towards an application of Pennsylvania law.
Based on the Court's analysis of Pennsylvania and Ohio's contacts under § 145(a)-(d), the Court finds that Pennsylvania's contacts are qualitatively more significant than Ohio's contacts. Accordingly, the § 145(a)-(d) "contacts" analysis weighs in favor of applying Pennsylvania law.
Having taken into account the "contacts" listed in § 145(a)-(d), the Court must now determine which state's relationship to the case is more significant under § 6.
The Court notes that three of the seven factors provided by § 6 do not appear relevant in determining which law to apply given the facts of this case.
"The court should give a local statute the range of application intended by the legislature when these intentions can be ascertained and can constitutionally be given effect." Restatement (Second) of Conflict of Laws § 6 cmt. b. The Pennsylvania legislature has chosen to enact statutes of repose in other contexts,
Ohio has a strong interest in Ohio law being applied in this case. As explained in fn. 2, supra, the Ohio legislature enacted the ten-year statute of repose in products liability actions to further several important government interests. 2004 Ohio Laws File 144 (S.B. 80) (Am Sub. S.B. 80), Section 3. For instance, one of the reasons that the Ohio General Assembly enacted the ten-year state of repose was "[t]o recognize that a statute of repose for product liability claims would enhance the competitiveness of Ohio manufacturers by reducing their exposure to disruptive and protracted liability with respect to products long out of their control. . .". Id. If Plaintiff were able to maintain his suit against MTD, it would subject MID to the precise "protracted liability" for a product "long out of [its] control" that the General Assembly aimed to guard against by enacting the statute of repose. Therefore,§ 6 (c) weighs towards applying Ohio law.
Plaintiff, a Pennsylvania resident, purchased the snow thrower in Pennsylvania, only ever used the snow thrower in Pennsylvania, and was injured by the snow thrower in Pennsylvania. (ECF No. 33 at ¶¶ 6-8.) Therefore, the Court finds that Plaintiff had a justified expectation that Pennsylvania law would apply to any claims arising from injuries he sustained while using the snow thrower.
By contrast, the Court finds that MID did not have a justified expectation that Ohio's statute of repose would apply to this action. MID has manufacturing, warehouse, and distribution facilities in four states and several foreign countries. (ECF No. 28 at ¶ 13.) Moreover, it is undisputed that MID sold the snow thrower that injured Plaintiff to Lowe's (ECF No. 36 at ¶¶ 2), a national retailer that, at the time MID sold it the snow thrower, had stores in 45 states. (ECF No. 34-8 at 4.) While MID has its principal place of business in Ohio, and while MID designed, engineered, and manufactured the snow thrower in Ohio, MID could not reasonably expect that the product liability law of Ohio would apply whenever a consumer was injured using one of its snow throwers that the consumer bought from a national retailer such as Lowe's.
The Court also notes that MID's "Manufacturer's Limited Warranty" states that consumers "may also have other rights which vary from state to state." (EFC No. 44-10). In other words, MID actually acknowledges that other state's laws may pertain to actions brought by consumers of its products. Accordingly, the Court finds that MID does not have a justified expectation that Ohio's law would apply here.
Accordingly, the Court finds that§ 6(d) weighs towards applying Pennsylvania law.
"Ideally, choice-of-law rules should be simple and easy to apply." Restatement (Second) of Conflict of Laws § 6 cmt. j. As stated above, Plaintiff purchased the snow thrower in Pennsylvania, only ever used it in Pennsylvania, and was injured using it in Pennsylvania. (ECF No. 33 at ¶¶ 6-8.) A simple rule for determining choice of law questions would be that when a product is purchased and used within a single state, that state's law applies to a products liability claim alleging that the product was defective. Moreover, while this Court is extremely familiar with Pennsylvania state law, it has much less exposure to, and knowledge of, Ohio state law. Therefore,§ 6(e) favors applying Pennsylvania law.
In conclusion, this Court finds that Pennsylvania's relationship to the issues and parties is more significant than Ohio's relationship. Therefore, the "significant relationship" component of Pennsylvania's hybrid analysis strongly favors applying Pennsylvania law
The Court further notes that the cases that MTD cites to support its claim that Ohio has a more significant relationship are inapposite.
The Court rejects MTD's analogy to Kuchinic v. McCrory, 422 Pa. 620, 624 (1966). In Kuchinic, three passengers were killed while traveling from Miami to Pittsburgh when their plane crashed in Georgia. Id. at 621-22. The Supreme Court of Pennsylvania overturned the trial court's application of Georgia law, id. at 623, reasoning that Georgia's only relationship to the case was "wholly fortuitous." Id. at 624. MTD's reliance on Kuchinic is misplaced. MTD purposefully sold its snow throwers to a national retailer with locations in 45 states. (ECF No. 34-8 at 4.) While MTD may not have known that the specific snow thrower that injured Plaintiff would be sold in Pennsylvania, MTD surely was aware that Lowe's would sell MTD's snow throwers in numerous locations throughout the United States, most likely including Pennsylvania. Therefore, unlike in Kuchinic, the place of the injury is not "wholly fortuitous." Further, the plaintiffs in Kuchinic were not Georgia residents, and thus Georgia had little interest in applying Georgia law. By contrast, Plaintiff is a Pennsylvania resident, and Pennsylvania has an interest in protecting its consumers from defective products produced by out-of-state manufacturers. Therefore, Kuchinic does not apply here.
MTD's analogy to Donovan v. Jdant Labs., 625 F.Supp.2d 256 (E.D. Pa. 2009) also fails to persuade the Court. In Donovan, the plaintiff, a Pennsylvania resident, sued the defendant, a New-York sperm bank, after the sperm bank implanted her with defective sperm causing her daughter to suffer severe birth defects. Id. at 262. The district court concluded that New York law applied to the plaintiff's tort claims, even though the "injury and the harm" took place in Pennsylvania. Id. at 269-71. However, Donovan is inapposite. In Donovan, the plaintiff traveled to the defendant's New York office for her screening and testing. Donovan, 625 F. Supp. 2d at 271. The district court relied on this fact in concluding that New York tort law applied. Id. By contrast, Plaintiff never had any contacts with MTD in Ohio. Therefore, Donovan is not analogous to this case.
The Court notes that DeGrasse v. Sensenich Corp., No. CIV.A. 88-1490, 1989 WL 23775 (E.D. Pa. Mar. 15, 1989) is also inapposite. In DeGrasse, members of an Arkansas family were injured in a plane crash in Alabama due to a defective propeller manufactured by a Pennsylvania corporation.
Finally, the Court declines to follow Kelly v. Ford Motor Co., 933 F.Supp. 465 (E.D. Pa. 1996). In Kelly, the plaintiff sued a Michigan automobile manufacturer for punitive damages after the plaintiff was involved in a car accident in Pennsylvania. Id. at 467. The district court held that Michigan law on punitive damages applied, relying on language from the Restatement that "[i]f the primary purpose of the tort rule involved is to deter or punish misconduct . . . the state where the conduct took place may be the state of dominant interest and thus that of most significant relationship." Id. at 169 (quoting Restatement (Second) of Conflict of Laws§ 145 cmt. c) (emphasis added). However, the same Restatement comment that Kelly quoted states that the location where the punitive conduct occurred "must not be over-emphasized" in the choice of law analysis. Restatement (Second) of Conflict of Laws § 145 cmt. c. Moreover, as the Eastern District of Pennsylvania recently stated, "Kelly appears more often distinguished than followed." In re Tylenol (Acetanzinophen) Mktg., Sales Practices & Prod. Liab. Litig., No. 2:12-CV-07263, 2015 WL 2417411, at *6 (E.D. Pa. May 20, 2015) (internal citations omitted). Furthermore, Kelly is a hventy-one-year-old district court case that is non-binding on this Court.
The Court notes that a strict adherence to Kelly wou Id create perverse incentives. If courts sitting in diversity reflexively applied the law of the state vvhere products were produced, manufacturers would be incentivized to forum-shop and re-locate to the state with the shortest statute of repose. This would insulate manufacturers from liability and thus remove some of the incentive for them to produce safe and non-defective products. Moreover, this paradigm \vould subvert the efforts of states such as Pennsylvania, which have chosen not to enact statutes of repose because they have determined that the benefits of protecting their citizens from defective products outweigh the costs of expanding liability for producers. Accordingly, this Court respectfully declines to follow Kelly.
This Court is ill-equipped to evaluate the relative merits of legislative action. Both the Pennsylvania and the Ohio legislatures have compelling reasons for the strict liability paradigms that they have adopted.
In conclusion, the Court finds that (1) the "substantial relationship" and "contacts" analysis favors applying Pennsylvania law, and (2) the "interests" analysis is neutral between Pennsylvania law and Ohio law. Therefore, the Court finds that Pennsylvania has a greater relationship to this case and a greater overall interest in its law being applied. Accordingly, the Court will apply Pennsylvania law.
The Court will apply Pennsylvania law because Pennsylvania has a greater overall interest in this case. Accordingly, Plaintiff's claims against MTD are not barred by Ohio's statute of repose.
nd now, THIS
2004 Ohio Laws File 144 (S.B. 80) (Am Sub. S.B. 80), Section 3.