Jeremy K. Warriner v. DC Marshall Jeep a/k/a DC Marshall, Inc. ( 2012 )

FOR PUBLICATION
ATTORNEYS FOR APPELLANT: ATTORNEYS FOR APPELLEES:
MICHAEL C. PEEK THOMAS B. BAYS
Christopher & Taylor SCOTT A. HARKNESS
Indianapolis, Indiana CYNTHIA E. LASHER
Norris Choplin Schroeder LLP
LARRY E. COBEN Indianapolis, Indiana
Coben & Associates
Scottsdale, Arizona
FILED
Mar 01 2012, 9:08 am
IN THE
CLERK
COURT OF APPEALS OF INDIANA of the supreme court,
court of appeals and
tax court
JEREMY K. WARRINER, )
)
Appellant-Plaintiff, )
)
vs. ) No. 49A02-1106-CT-489
)
DC MARSHALL JEEP a/k/a )
DC MARSHALL, INC., )
)
Appellee-Defendant. )
APPEAL FROM THE MARION SUPERIOR COURT
The Honorable Theodore M. Sosin, Special Judge
Cause No. 49D02-0706-CT-23488
March 1, 2012
OPINION – FOR PUBLICATION
BAKER, Judge
In May 2009, Chrysler LLC, an American automobile icon with a worldwide
annual production of approximately 2 million vehicles, filed for Chapter 11 bankruptcy
protection. Chrysler then emerged from bankruptcy as a new corporation. As a result,
Jeremy Warriner acknowledges that his product liability claim filed in 2005 against
Chrysler was discharged. Warriner had both his legs amputated following an accident
that caused his Jeep Wrangler made by Chrysler to roll and catch fire. Unable to
continue his suit against the manufacturer, Warriner sued the dealership that leased him
the car in strict liability as a statutory manufacturer under Indiana Code section 34-24-2-4
that allows a plaintiff to sue the principal distributor or seller of a product if the trial court
“is unable to hold jurisdiction” over a particular manufacturer of a product alleged to be
defective. Today, we are asked to decide whether a manufacturer‟s discharge in
bankruptcy prevents a trial court from holding jurisdiction over that manufacturer. We
conclude it does not.
Appellant-plaintiff Jeremy K. Warriner appeals the trial court‟s grant of summary
judgment in favor of appellee-defendant DC Marshall, Inc. (the Dealership) on
Warriner‟s complaint alleging that the Dealership is strictly liable for injuries that he
sustained in an automobile accident under the Indiana Products Liability Act1 (IPLA) and
liable for negligent marketing of an unsafe product. Warriner raises several issues on
appeal, two of which we find dispositive. Regarding Warriner‟s first claim, he argues
that because Chrysler LLC‟s bankruptcy prevented the trial court from holding
1
Ind. Code § 34-20-1-1 to 9-1.
2
jurisdiction over the manufacturer, he may, in accordance with the IPLA, hold the
Dealership strictly liable. Warriner also argues that genuine issues of material fact exist
as to whether the Dealership was negligent in its marketing practices. Concluding that
summary judgment was properly entered for the Dealership, we affirm.
FACTS
On October 22, 2005, Warriner, a resident of Indianapolis, was injured in an
accident while driving his 2005 Jeep Wrangler (the Wrangler) on S.R. 240 near
Greencastle when another vehicle collided with the side of his vehicle. The Wrangler
rolled, trapping Warriner inside, before it caught fire. Warriner was severely burned,
resulting in the amputation of both his legs.
Warriner leased the Wrangler from Daimler Chrysler Financial Services through
the Dealership. The Dealership conducted business on US Hwy 41 in Sullivan and was
an authorized dealer of Jeep brand products until June 30, 2005. The president and sole
shareholder was Donald C. Marshall, who is married to Warriner‟s cousin.
On June 7, 2007, Warriner filed a complaint in Marion County against the
Dealership, Chrysler LLC2 (“Old Chrysler”), and several unnamed defendants. Count I
of the complaint alleged that Old Chrysler was strictly liable under the IPLA for
Warriner‟s injuries due to a design defect of the Wrangler. Count II asserted that the
2
In Warriner‟s original and first amended complaint, he incorrectly sued DaimlerChrysler Corporation.
Prior to Warriner filing his complaint, DaimlerChrysler Corporation converted under Delaware law to a
limited liability company and was renamed DaimlerChrysler Company LLC. After the complaint was
filed, DaimlerChrysler Company LLC changed its name to Chrysler LLC and, subsequently, Old Carco
LLC. For sake of simplicity, we will refer to the defendant named in Warriner‟s complaint as Chrysler
LLC.
3
Dealership contributed to Warriner‟s injuries by negligently marketing the Wrangler to
the general public as a safe automobile.
On April 30, 2009, Old Chrysler and certain of its domestic and indirect
subsidiaries filed for protection under Chapter 11 of Title 11 of the United States Code
(the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District
of New York (the “Bankruptcy Court”). In re Chrysler, 405 B.R. 84, 87-88 (U.S. Bnkr.
Ct. S.D.N.Y. 2009). On May 4, 2009, Old Chrysler filed a notice of suggestion of
bankruptcy with the trial court, and the trial court, in accordance with Section 362 of the
Bankruptcy Code, stayed all proceedings. Appellant‟s App. p. 6, 68-69.
On May 31, 2009, the Bankruptcy Court entered an order approving the sale of
substantially all of Old Chrysler‟s operating assets to Chrysler Group, LLC (“New
Chrysler”). The sale agreement provided that Old Chrysler transfer its assets to New
Chrysler free and clear of all liens, claims, interests and encumbrances.
On August 17, 2009, the trial court granted Warriner‟s motion to amend his
complaint, his first amended complaint, and add Chrysler Group, LLC (“New Chrylser”)
as a defendant on the theory of successor liability. After New Chrysler removed the case
to federal district court, on December 18, 2010, Warriner filed a motion to dismiss New
Chrysler because of the terms of the sale agreement and have the case against the
remaining defendants remanded to state court. On January 14, 2010, the district court
granted the motion. On March 4, 2010, the Dealership filed its first motion for summary
judgment on the first amended complaint.
4
On March 19, 2010, Warriner filed his brief in opposition to the Dealership‟s
motion for summary judgment. That same day, Warriner also filed a motion to amend
his complaint, his second amended motion, to remove Old Chrysler as defendant and,
instead, alleged in Count I that the Dealership is now strictly liable under the IPLA for
Warriner‟s injuries because, as a result of Old Chrysler‟s bankruptcy, the trial court is
unable to hold jurisdiction over Old Chrylser. On March 26, 2010, the trial court granted
the motion to amend. The trial court later reaffirmed its order granting the second motion
to amend and, in the same order, summarily denied the Dealership‟s motion for summary
judgment on the first amended complaint.
On April 23, 2010, the Bankruptcy Court entered an order confirming the Second
Amended Bankruptcy Plan for Old Chrysler‟s Chapter 11 bankruptcy, effective April 30,
2010. The plan provides that, as of the effective date, Old Chrysler ceases to exist as a
corporation and that all persons who have been, are, or may be holders of claims against
Old Chrysler shall be enjoined from “commencing, conducting or continuing in any
manner, directly or indirectly, any suit, action or other proceeding of any kind against”
Old Chrysler. Appellant‟s App. p. 1055-56.
On October 9, 2010, the Dealership filed a motion for summary judgment on both
counts of the second amended complaint, claiming that it was entitled to summary
judgment as a matter of law because the material facts show that Warriner cannot proceed
with his strict liability claim against the Dealership, and the Dealership did not engage in
any marketing or representation to Warriner concerning the handling performance,
5
collision protection safety or safety design of the Wrangler. Warriner filed his brief in
opposition arguing that the Dealership was not entitled to summary judgment on either
count because Old Chrysler‟s bankruptcy permits him to proceed against the Dealership
in strict liability on count I. On count II, Warriner argued that the trial court had already
rejected the Dealership‟s arguments when it denied the Dealership‟s first motion for
summary judgment. Following a hearing on the motion for summary judgment, the trial
court entered an order granting the Dealership‟s motion for summary judgment on the
second amended complaint on April 6, 2011. Warriner filed a motion to correct error that
the trial court subsequently denied. Warriner now appeals.
DECISION AND DISCUSSION
I. Standard of Review
In reviewing a trial court‟s ruling on summary judgment, this court stands in the
shoes of the trial court, applying the same standards in deciding whether to affirm or
reverse summary judgment. Quezare v. Byrider Finance, Inc., 941 N.E.2d 510, 512 (Ind.
Ct. App. 2011). Summary judgment is appropriate only when the moving party
demonstrates there are no genuine issues of material fact and that the moving party is
entitled to a judgment as a matter of law. Ind. Trial Rule 56(C). We will construe the
designated evidence in the light most favorable to the non-moving party. Id. The party
appealing the grant of summary judgment has the burden of persuading this court that the
trial court‟s ruling was improper. Id. We will affirm summary judgment if it is
6
sustainable on any theory or basis found in the evidentiary material designated to the trial
court. Inlow v. Inlow, 797 N.E.2d 810, 818 (Ind. Ct. App. 2003).
II. IPLA Claim
Warriner argues that the trial court erred when it granted summary judgment in
favor of the Dealership on Count I. Specifically, although the Dealership is not the
manufacturer of the Wrangler, Warriner claims that, under Indiana Code section 34-20-2-
4, the Dealership may be considered the manufacturer of the Wrangler because the trial
court is unable to hold jurisdiction over Old Chrysler as a result of its bankruptcy, and the
Dealership was a principal seller or distributor of Old Chrysler products. Accordingly,
Warriner argues that he may now hold the Dealership as the statutory manufacturer and
strictly liable for his injuries.
When interpreting statutes, we examine and interpret a statute as a whole, giving
words their common and ordinary meaning, and do not overemphasize a strict, literal, or
selective reading of individual words. Schrenger v. Caesars Ind., 825 N.E.2d 879, 881
(Ind. Ct. App. 2005). We take words and phrases in their plain, ordinary, and usual
meaning unless a different purpose is manifested by the statute. Id. Every word must be
given effect and meaning where possible, and no part is to be held meaningless if it can
be reconciled with the rest of the statute. Id.The IPLA imposes liability upon sellers of a product in a defective condition that
is unreasonably dangerous to any user or consumer. Morgen v. Ford Motor Co., 797
N.E.2d 1146, 1148 (Ind. 2003). The IPLA “governs all actions that are: (1) brought by a
7
user or consumer; (2) against a manufacturer or seller; and (3) for physical harm caused
by a product . . . regardless of the substantive legal theory or theories upon which the
action is brought.” Ind. Code § 34-20-1-1. The IPLA restricts actions for strict liability
in tort to manufacturers of defective products. I.C. § 34-20-2-3. But, the IPLA provides
an exception by virtue of a provision that imposes liability through treating certain parties
as though they are manufacturers:
If a court is unable to hold jurisdiction over a particular manufacturer of a
product or a part of a product alleged to be defective, then that
manufacturer‟s principal distributor or seller over whom a court may hold
jurisdiction shall be considered, for the purposes of this chapter, the
manufacturer of the product.
I.C. § 34-20-2-4. In other words, Warriner may sue the Dealership in strict liability if
two conditions are met: (1) the Dealership must be a principal distributor or seller over
whom the court can hold jurisdiction; and (2) the court must be unable to hold
jurisdiction over Old Chrysler, the actual manufacturer. Kennedy v. Guess, Inc., 806
N.E.2d. 776, 781 (Ind. 2004). If either condition is absent, then Warriner‟s claim must
fail as a matter of law.
Finding it dispositive of his claim, we begin with Warriner‟s argument that the
trial court does not hold jurisdiction over Old Chrysler because the Bankruptcy Plan
discharged his personal injury claim. Specifically, Warriner directs us to the language of
the Bankruptcy Plan that provides that all persons who have been, are, or may be holders
of claims against Old Chrysler shall be enjoined from “commencing, conducting or
continuing in any manner, directly or indirectly, any suit, action or other proceeding of
8
any kind against” Old Chrysler. Appellant‟s App. p. 1055-56. Taking Warriner‟s
assertion as true that the language in the Bankruptcy Plan discharged his claim, we
consider the effect of a discharge under Federal Bankruptcy laws on the trial court‟s
jurisdiction.
Under the United States Constitution, the federal government enjoys the exclusive
power to promulgate bankruptcy laws. U.S. Const., art. I, § 8. Federal law governing
bankruptcy preempts state law. Hammes v. Brumley, 659 N.E.2d 1021, 1027 (Ind.
1995). Indiana courts have recognized the supremacy of the federal courts in matters
related to bankruptcy proceedings. Id.According to section 524(a)(2) of the Bankruptcy Code, a discharge operates as an
injunction against the commencement or continuation of an action, the employment of
process, or an act, to collect, recover or offset any such debt as a personal liability of the
debtor. In other words, a discharge injunction enjoins a creditor or claimant from
initiating or continuing a cause of action, but does not divest state courts of jurisdiction
over an enjoined action. Indeed, if discharge deprived a state court of jurisdiction, then
there would be no need for the permanent injunction that accompanies the discharge.
Furthermore, a debtor confronted by a creditor seeking to collect on a debt discharged in
bankruptcy may assert discharge as an affirmative defense in state court. In re Kewanee
Boiler Corp., 270 B.R. 912, 918 (Bankr. N.D. Ill. 2002).
Accordingly, we find that, contrary to Warriner‟s arguments, the trial court still
holds jurisdiction for the purposes of the IPLA. Therefore, Warriner may not rely on
9
Indiana Code section 34-20-2-4 to assert a claim in strict liability against the Dealership,
and we affirm the judgment of the trial court with respect to the IPLA claim.
III. “Negligent Marketing”
Warriner next contends the trial court erred in granting the dealership‟s motion for
summary judgment in regard to the negligent marketing claim. Specifically, Warriner
argues that there is a genuine issue of material fact as to whether the Dealership
participated in the marketing of the Wrangler that precludes summary judgment.3
Warriner‟s complaint alleged that the Dealership is:
negligent in the following respects:
a. marketing and representing to the consuming public a level of
safety in handling performance and collision protection that
was not accurate;
b. marketing and representing to the consuming public that the
Jeep was reasonably safe; and,
c. providing the consuming public with information which
inaccurately described the safety design of the Jeep Wrangler.
Appellant‟s App. p. 492. As a result, Warriner claims that he purchased the Wrangler, he
was harmed by an alleged design defect, and the Dealership is thereby responsible for his
injuries because it inaccurately represented to the public that the vehicle was safe.
Warriner does not direct us to any Indiana cases recognizing a claim of negligent
marketing. However, to recover on a theory of negligence, a plaintiff must establish
three elements: (1) the defendant‟s duty to conform his conduct to a standard of care
3
Additionally, Warriner argues that, if successful in arguing his first claim that the Dealership may be
held strictly liable to due to bankruptcy of Old Chrysler, the Dealership also stands in the shoes of Old
Chrysler on his claim for negligent marketing. Having concluded that the Warriner‟s first claim fails, so
does this argument.
10
arising from his relationship with the plaintiff, (2) a breach of the defendant‟s duty to
conform his conduct to that standard of care, and (3) an injury to the plaintiff proximately
caused by the breach. Morehead v. Deitrich, 932 N.E.2d 1272, 1277 (Ind. Ct. App.
2010).
Here, Warriner asserts that there is a genuine issue of material fact as to whether
the Dealership participated with Old Chrysler in the marketing of the Wrangler. In his
brief in opposition to the second motion for summary judgment, Warriner refers back to
the arguments made in his brief in opposition to the first motion for summary judgment.
More specifically, Warriner argued that the “[c]omplaint alleges that the Wrangler was
defective in design and was marketed with representations regarding its safety design.”
Appellant‟s App. p. 495. And, in support of his argument on appeal, Warriner highlights
the following designated evidence: (1) the Dealership had a highway billboard showing
the Jeep logo, appellant‟s app. p 875, (2) the Dealership received marketing pamphlets
from Old Chrysler to market Jeeps, appellant‟s app. p. 908-09, and (3) Warriner received
marketing materials and saw advertisements by Old Chrysler which indirectly benefited
the Dealership. Appellant‟s App. p. 906-09, 916; Appellant‟s Br. p. 16.
We fail to see how this evidence creates a genuine issue of material fact as to
whether the Dealership participated in the marketing of Old Chrysler, particularly in
regard to any representations regarding safety made by the Dealership. Thus, we affirm
the trial court‟s grant of summary judgment in favor of the Dealership.
11
The judgment of the trial court is affirmed.
DARDEN, J., concurs.
BAILEY, J., concurs in part and concurs in result in part.
12
IN THE
COURT OF APPEALS OF INDIANA
JEREMY K. WARRINER, )
)
Appellant-Plaintiff, )
)
vs. ) No. 49A02-1106-CT-489
)
DC MARSHALL JEEP a/k/a )
DC MARSHALL, INC., )
)
Appellee-Defendant. )
BAILEY, Judge, concurring in part and concurring in result in part
The majority affirms the trial court‟s grant of D C Marshall Jeep‟s (“Marshall”)
motion for summary judgment. I concur as to the negligent marketing claim. But I
concur in result on Warriner‟s strict products liability claim and write separately because
I would affirm the trial court on different grounds. I would affirm the trial court because
Warriner voluntarily dismissed Old Chrysler from the case before the effective date of
the liquidation of Old Chrysler by the bankruptcy court. Thus, he cannot seek recovery
from Marshall on his products liability claim. Further, while I disagree with the
13
majority‟s interpretation of the Indiana Products Liability Act (“IPLA”), I also do not
think we need to reach that issue to decide this case, and would not do so.
On March 19, 2010, Warriner filed his motion to amend the complaint and his
amended complaint. In his motion, Warriner stated:
1. Chrysler, LLC and D.C. Marshall by virtue of its Memorandum
Relating to Bankruptcy Proceedings of Chrysler and its response to
Plaintiff‟s Complaint has stated that Chrysler, LLC n/k/a Old CarCo,
LLC, is Daimler Chrysler Corporation, the entity named in Plaintiff‟s
Complaint.
2. Pursuant to Indiana Code 34-20-2-4 if a Court is unable to hold
jurisdiction over a manufacturer of a product, then that manufacturer‟s
seller shall be considered the manufacturer. See also Kennedy v. Guess,
806 N.E.2d 776 (Ind. 2004).
***
5. In this case justice requires amendment of the pleading. Since Daimler
Chrysler Corporation has filed bankruptcy the Plaintiff in the interest of
justice is entitled to amend his Complaint.
(Appellant‟s App. 485-486.) Warriner‟s amended complaint named only Marshall as a
defendant. On March 26, 2010, the trial court granted Warriner‟s motion and amended
his complaint. (Appellant‟s App. 515.) The trial court‟s CCS reflects dismissal of all
defendants but Marshall from the case. On April 23, 2010—nearly a month after the trial
court granted Warriner‟s motion—the United States Bankruptcy Court for the Southern
District of New York approved Old Chrysler‟s liquidation plan and gave it an effective
date of April 30, 2010.
Warriner dismissed Old Chrysler from the case before the bankruptcy court‟s
approval of Old Chrysler‟s liquidation plan and the plan‟s effective date. That is,
14
Warriner dismissed Old Chrysler as a party after the trial court exercised jurisdiction over
the business but before the final liquidation order. The trial court relinquished
jurisdiction over Old Chrysler on Warriner‟s motion, and he cannot now claim the trial
court could not “hold” jurisdiction and thus deprived him of an opportunity to hold the
seller liable under the section 34-20-2-4 of the IPLA.
For this reason, I do not think we need to reach the question of whether the trial
court‟s entry of summary judgment was erroneous under the IPLA. Nevertheless, I
disagree with the majority‟s interpretation of the Act, and therefore address the issue
here.
The majority affirms the trial court‟s entry of summary judgment based upon a
resolution of an issue of apparent first impression: whether the phrase “unable to hold
jurisdiction,” I.C. § 34-20-2-4, works to preclude Warriner from pursuing his strict
products liability claim against Marshall as a principal distributor or seller of a vehicle
that a now-bankrupt business manufactured. On the majority‟s reading of the statute, this
scenario would preclude an injured plaintiff from seeking any remedy under the IPLA‟s
strict products liability provisions, because our courts could maintain control—“hold
jurisdiction”—over the dispute just long enough to dismiss the manufacturer and
preclude any other remedy. I cannot agree that, in giving full effect to the IPLA, this is
what the legislature intended when it allowed an injured party to pursue a remedy against
a principal distributor or seller where the court is “unable to hold jurisdiction” over the
manufacturer.
15
Indiana Code section 34-20-2-4 provides:
If a court is unable to hold jurisdiction over a particular manufacturer of a
product or part of a product alleged to be defective, then that manufacturer's
principal distributor or seller over whom a court may hold jurisdiction shall
be considered, for the purposes of this chapter, the manufacturer of the
product.
This provision protects sellers and distributors from strict products liability except
where the court “is unable to hold jurisdiction” over the manufacturer. Our supreme
court referred to this provision as the “„domestic distributor‟ exception” to the IPLA.
Kennedy v. Guess, Inc., 806 N.E.2d 776, 781 (Ind. 2004). To be held liable under the
domestic distributor exception, the alleged distributor or seller must 1) be the “principal
distributor or seller over whom the court can hold jurisdiction; and 2) the court must be
unable to hold jurisdiction” over the manufacturer. Id.The IPLA leaves undefined the phrase “hold jurisdiction.” This phrase troubled
the federal Seventh Circuit Court of Appeals, which reversed a district court‟s entry of
summary judgment that relied on the phrase but where the parties provided little
argument to aid the court in its interpretation of the statute. Williams v. REP Corp., 302
F.3d 660, 664-65 (7th Cir. 2002) (citing I.C. § 33-1-1.5-3(d), the predecessor statute to
I.C. § 34-20-2-4).
Here, the parties place this provision directly into play and provide argument on its
meaning. The majority concludes that a court “hold[s] jurisdiction” where, as here, a
federal bankruptcy court has discharged claims against a defendant manufacturer. The
16
majority provides two rationales. First, the permanent injunction against pursuing a
discharged claim would not be necessary if the effect of a discharge in bankruptcy were
to divest state courts of jurisdiction over the claim. Second, the discharge of a claim in
bankruptcy may serve as an affirmative defense in other courts. This, the majority
concludes, shows that a non-bankruptcy court can “hold jurisdiction” over the enjoined
action.
I do not think this result conforms to our standard for statutory interpretation.
A question of statutory interpretation is a matter of law. In such
interpretation, the express language of the statute and the rules of statutory
interpretation apply. We will examine the statute as a whole, and avoid
excessive reliance on a strict literal meaning or the selective reading of
words. Where the language of the statute is clear and unambiguous, there
is nothing to construe. However, where the language is susceptible to more
than one reasonable interpretation, the statute must be construed to give
effect to the legislature's intent. The legislature is presumed to have
intended the language used in the statute to be applied logically and not to
bring about an absurd or unjust result. Thus, we must keep in mind the
objective and purpose of the law as well as the effect and repercussions of
such a construction.
In re J.J., 912 N.E.2d 909, 910 (Ind. Ct. App. 2009). Where non-technical terms are used
in a statute and go undefined, we give definition to those terms through “„their ordinary
and accepted dictionary meaning.‟” Bd. of Dirs. of Bass Lake Conservancy Dist. v.
Brewer, 839 N.E.2d 699, 702 (Ind. 2005) (quoting Johnson County Farm Bur. Coop.
Ass‟n v. Ind. Dep‟t of State Rev., 568 N.E.2d 578, 581 (Ind. Tax Ct. 1991), trans.
17
denied). Where a word is used differently from its common dictionary definition,
however, we disregard the common definition. Id.Here, the statute‟s use of the phrase “hold jurisdiction” goes undefined. The
statute uses “hold” in an unusual way. We frequently discuss whether a court “has”
jurisdiction, see, e.g., Stewart v. Stewart, 708 N.E.2d 903, 907 (Ind. Ct. App. 1999)
(noting that “North Carolina has home state jurisdiction”), or may “obtain” jurisdiction,
see, e.g., Horlander v. Horlander, 579 N.E.2d 91, 93 (Ind. Ct. App. 1991) (noting that a
court “obtains [personal] jurisdiction” where minimum contacts exist between the state
and the party), trans. denied. “Hold” is commonly understood not only to indicate
possession but also retention. See Webster‟s Third New International Dictionary
Unabridged 1078 (2002) (including among the most common definitions of “hold,” “to
retain in one‟s keeping : maintain possession of : not give up or relinquish,” and listing
among synonyms not only “possess” or “have” but also “detain” and “reserve”).
Applied here, then, I do not think a court “holds” jurisdiction when it exercises
jurisdiction only to conclude that it cannot legally act, as in the case of a bankruptcy stay
or discharge enjoining the claim. As our supreme court explained:
Subject matter jurisdiction is the power to hear and determine cases of the
general class to which any particular proceeding belongs. Personal
jurisdiction requires that appropriate process be effected over the parties.
Where these two exist, a court‟s decision may be set aside for legal error
only through direct appeal and not through collateral attack. Other phrases
recently common to Indiana practice, like “jurisdiction over a particular
case,” confuse actual jurisdiction with legal error, and we will be better off
ceasing such characterizations.
18
K.S. v. State, 849 N.E.2d 538, 540 (Ind. 2006).
Thus, in Packard, our supreme court held that the use of the phrase, “the tax court
does not have jurisdiction to hear the appeal,” I.C. § 33-26-6-2, referred to this less
precise meaning. The phrase meant not personal or subject matter jurisdiction, but
instead referred to the imprecise formulation, “jurisdiction over a particular case”—that
is, the failure to meet the statutory requirements to perfect an appeal to the Indiana Tax
Court. Packard, 852 N.E.2d at 929.
The better reading of section 34-20-2-4—one that I think gives greater effect to
the legislature‟s enactment of the IPLA by providing injured parties with a path toward
recovery from distributors or sellers—understands “hold jurisdiction” as the court in
Packard understood the statute at issue there. A court cannot hold (in the sense discussed
above) jurisdiction in the manner best indicated by the language of the statute not because
the court lacks jurisdiction, but because there is a legal impediment to the court‟s exercise
of subject matter and/or personal jurisdiction. Thus, the effect of pursuing a claim that
has been discharged in bankruptcy is much the same as an attempt to pursue an appeal
that has not been perfected: it is an act that subjects the claimant to the jurisdiction of the
bankruptcy court to enforce the injunction and requires Indiana courts to relinquish
control over resolution of the claim.
To be sure, being “unable to hold jurisdiction” in the IPLA implicates the true
jurisdictional concepts discussed in K.S. and Packard. It also, as the majority notes,
incorporates such things as “a „matter constituting an avoidance, matter of abatement or
19
affirmative defense.‟” Packard, 852 N.E.2d at 932 (quoting Ind. Trial Rule 8(C)). But I
cannot agree with the majority‟s approach that those are the only requirements envisioned
by the IPLA, because it forecloses remedies where, for example, an injury could only be
reasonably discovered after a manufacturer has been discharged of its debts in bankruptcy
related to a particular product. Strictly speaking, jurisdiction over the manufacturer
might still exist: a claim under the IPLA is within the subject matter jurisdiction of
Indiana courts, and service could be obtained to establish personal jurisdiction over the
manufacturer. But the bankruptcy discharge would serve as a legal impediment to
preclude an Indiana court from “hold[ing] jurisdiction,” that is, from resolving the dispute
on its merits through the exercise of subject matter and personal jurisdiction over the
liability claim and the discharged manufacturer.
This reading of the statute does not preclude a court from determining that a
plaintiff failed to meet a prerequisite to maintaining an action under the IPLA against a
manufacturer and thus is precluded from pursuing the distributor or seller. Indeed, such
is the case here, where Warriner voluntarily dismissed Old Chrysler from the action.
Thus, my reading of the statute does not afford Warriner relief from summary
judgment on his strict products liability claim. For while I would conclude that the trial
court here could not hold jurisdiction over Old Chrysler, Warriner voluntarily dismissed
Old Chrysler from the suit well before the trial court‟s entry of summary judgment, and
indeed before the bankruptcy court‟s liquidation plan was given full effect. It was thus
by Warriner‟s own actions that the court was left without jurisdiction over Old Chrysler.
20
In light of the foregoing, I concur in part, and concur in result in part.
21