DocketNumber: 78-2567
Citation Numbers: 622 F.2d 657, 1980 U.S. App. LEXIS 16550
Judges: Higginbotham, Adams, Hunter, Higgin-Botham
Filed Date: 6/17/1980
Status: Precedential
Modified Date: 11/4/2024
OPINION OF THE COURT
After trial, but prior to the presentation of the case to the jury, the district court in this diversity case granted defendants’ motion for a directed verdict on the ground that Ohio law barred recovery. Because we are persuaded by a careful review of the Ohio decisional law, as well as other relevant sources, that the Supreme Court of Ohio would not construe its statute of limitations so as to preclude recovery in this case, we reverse.
I.
James and Sondra McKenna brought this suit for negligence, misrepresentation, and products liability against Ortho Pharmaceutical Corporation (Ortho). The plaintiffs charged that Mrs. McKenna suffered severe personal injury and permanent disability as a result of ingesting Ortho-Novum, an oral contraceptive manufactured and marketed by Ortho. Following the birth of the McKennas’ second child, Mrs. McKenna began using Ortho-Novum in January 1965, after receiving assurances both from Or-tho’s published brochure and from her personal physician, that the drug was safe and posed no serious risks. In 1967, Mrs. McKenna developed severe headaches and also experienced two attacks of transient ischemia. While hospitalized in 1969 for a stomach ailment involving vessel wall damage, Mrs. McKenna was told that she had high blood pressure, which was characterized as hypertension. In June 1969, Mrs. McKenna ceased using the oral contraceptives. Three years later, in March 1972, she suffered a catastrophic cerebrovascular stroke that left her severely and permanently paralyzed.
Prior to trial, the district court denied Ortho’s motion for summary judgment on the ground that a genuine issue of material fact existed as to whether the McKennas knew, or reasonably should have known, more than two years prior to the commencement of the suit, that Mrs. McKenna’s injuries resulted from the ingestion of Ortho-Novum. During the four weeks of jury trial, the McKennas introduced expert witnesses who testified that the cerebrovascular stroke was the ultimate result of either vessel-wall damage or high blood pressure, and that both of these conditions, as well as the headaches and transient ischemia attacks, were caused by Mrs. McKenna’s ingestion of Ortho-Novum. At the close of trial, but prior to submission of the case to the jury, the district court granted Ortho’s motion for a directed verdict on the ground that the action was barred under Ohio’s statute of limitations. The district court concluded that the Ohio statute began to run, at the latest, in 1969 when Mrs. McKenna developed high blood pressure, and that the cause of action was accordingly barred because it was filed more than two years after that time. It is this conclusion that we review here.
II.
Although Pennsylvania courts ordinarily apply the statute of limitations of the forum state,
When a cause of action has been fully barred by the law of the state in which it arose, such bar shall be a complete defense to an action thereon in any of the courts of this Commonwealth.4
The district court, in granting Ortho’s motion for a directed verdict, reasoned that the Pennsylvania statute borrowed not only Ohio’s two-year limitations period, but also Ohio’s law governing the determination when the cause of action arises. In their appeal, the McKennas contend that this was
The McKennas premise their argument on this Court’s prior decision in Mack Trucks, Inc. v. Bendix-Westinghouse Automotive Air Brake Company.
Mack Trucks’ application of the Pennsylvania “borrowing statute,” the McKennas claim, depended upon the ascertainment of where the cause of action arose, which in turn was based on the prior determination of when it accrued. In support of this interpretation, the McKennas rely on Prince v. Trustees of the University of Pennsylvania,
The crux of the justification offered for this construction of Mack Trucks is the assertion that we determined when the cause of action arose in that case by references to Pennsylvania law. But, as the most recent decision addressing this issue points out, “Mack Trucks relied not only on Pennsylvania cases but also on cases from other jurisdictions.”
We are persuaded, rather, that the apparent purpose of the Pennsylvania “borrowing statute” requires us to look to the law of the state where the cause of action arose to determine not only the prescribed period of limitations but also the point at which the statute begins to run. By its terms, the “borrowing statute” bars a plaintiff from suing in Pennsylvania “when [the] cause of action has been fully barred by the laws of the state ... in which it arose . . ..” In our view, the essential question posed under the “borrowing statute” is whether the action in question is precluded by the laws of the state in which it accrued, and the answer to that question also must be based on the law of the state in which the claim arose. To do otherwise might well revive an action which is “fully barred by the laws” of another state. Accordingly, because the McKennas’ cause of action arose in Ohio, we must look to Ohio law to determine when Ohio’s statute of limitations commenced to run. And the question for decision, then, is whether Ohio’s statute of limitations commenced to run prior to the date Mrs. McKenna knew,
III.
Given that Ohio law governs the question for decision, the task remains to determine what the pertinent Ohio law is and then to apply it to this controversy. The question of how a federal court is to ascertain and apply state decisional law to a particular case has provoked considerable comment from courts and commentators alike.
In those few instances in which the highest state court has recently spoken to the precise question at issue in a particular setting, the duty of the federal court to determine and apply state law is easily met. After all, “[t]he State’s highest court is the best authority on its own law.”
An accurate forecast of Ohio’s law, as it would be expressed by its highest court, requires an examination of all relevant sources of that state’s law in order to isolate those factors that would inform its decision. The primary source that must be analyzed of course, is the decisional law of the Ohio Supreme Court. In the absence of authority directly on point, decisions by that court in analogous cases provide useful indications of the court’s probable disposition of a particular question of law. It is important to note, however, that our prediction “cannot be the product of a mere recitation of previously decided cases.”
Considered dicta by the state’s highest court may also provide a federal court with reliable indicia of how the state tribunal might rule on a particular question.
In sum, a federal court attempting to forecast state law must consider relevant state precedents, analogous decisions, considered dicta, scholarly works, and any other reliable data tending convincingly to show how the highest court in the state would decide the issue at hand. The rule of Erie calls on us to apply state law and not, as the dissent notes, “to participate in an effort to change it”
A diversity litigant should not be drawn to the federal forum by the prospect of a more favorable outcome than he could expect in the state courts. But neither should he be penalized for his choice of the federal court by being deprived of the flexibility that a state court could reasonably be expected to show.
IV.
In support of its conclusion that Ohio’s statutes of limitation bar the McKennas’ actions, the district court relied, as does the dissent here, primarily on Wyler v. Tripi,
The “termination of treatment” concept was developed very early in Ohio law
It was this kind of issue with which the Ohio Supreme Court was confronted in Wyler. The plaintiff there alleged that improper treatment by her physician ultimately resulted in the manifestation of asceptic necrosis, necessitating the replacement of her hip and the subsequent removal of her leg. Because the plaintiff failed to discover the alleged negligence within a year after she left the care of her physician, application of either the traditional rule or the “termination of treatment” exception would not prevent what the Wyler majority itself termed “the unconscionable result that the injured party’s right to recovery can be barred by the statute of limitations before [s]he is even aware of its existence.”
Although the court’s examination of the cases persuaded it that “there is much to recommend the adoption of the discovery rule,”
Notwithstanding this extensive pronouncement of the court’s position, this same court during the following year employed the discovery rule in Melnyk v.
Although the Melnyk court took great pains, as does the dissent in this case, to distinguish Melnyk from Wyler on the ground that the former did not involve the “problems faced in the defense of a ‘stale’ claim for medical malpractice,”
Melnyk’s implicit rejection of the Wyler rationale — that only the state legislature may properly decide whether to apply the discovery rule — appears well justified. As evidence of the alleged intent of the legislature to eschew the discovery rule, Wyler referred to the legislature’s failure to enact legislation modifying the court’s prior decisions that interpreted the statute of limitations for medical malpractice.
It is claimed, nonetheless, that “Melnyk does not overrule Wyler,” but “merely carves out a very specific and narrow exception”
In our view, the Ohio Supreme Court’s decision in Melnyk not only abandoned the sole justification proffered for its opposition in Wyler to the adoption of the discovery rule, but also manifested a recognition that this approach alone avoids the harsh and inequitable results of applying the traditional rule in such cases. “Certainly a federal court sitting in diversity should not mechanically follow precedent and blindly apply principles of stare decisis when it appears that the corresponding state court would adjust its common law to meet changing conditions.”
The task of a federal court sitting in diversity is often difficult, for it must forsake its own expertise and assume that of the foreign state. Required as we are to predict how the Ohio Supreme Court would decide the present case, however, we believe that the Court would hold that the applicable statutes of limitation in this case were tolled until the McKennas knew, or by the exercise of reasonable diligence should have discovered, the cause of Mrs. McKenna’s injuries. Accordingly, we reverse the judgment of the district court, and remand for further proceedings consistent with this opinion.
. The complaint alleged that as a direct result of her use of Ortho-Novum, Mrs. McKenna suffered the following permanent injuries: paralysis of both legs and arms; bilateral facial paralysis; double vision; impairment of
. The district court noted that inasmuch as the plaintiffs’ counsel is a Pittsburgh attorney, “it was natural” that suit was brought in Pennsylvania.
. Under the doctrine of Erie R. R. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938), a federal court exercising diversity jurisdiction must apply state rather than federal decisional law to questions of a “substantive” character. In order to determine which state’s law applies, a federal court must ascertain the substantive law that would be applied to the question by a court of the state in which it is located, Klaxon Co. v. Stanton Elec. Mfg. Co., 313 U.S. 487, 61 S.Ct. 1020, 85 L.Ed. 1477 (1943), in this case Pennsylvania. Inasmuch as all of the significant events pertinent to this action occurred in Ohio, it is not disputed that the cause of action arose in Ohio and that under Pennsylvania’s conflict of law rules, see Griffith v. United Air Lines, Inc., 416 Pa. 1, 203 A.2d 796 (1964), the substantive law of Ohio governs this action.
. Pa.Stat.Ann. tit. 12, § 39 (repealed 1978).
This provision was replaced by a similar provision which provides that:
(b) General rule — The period of limitation applicable to a claim accruing outside this Commonwealth shall be either that provided or prescribed by the law of the place where the claim accrued or by the law of this Commonwealth, whichever first bars the claim.
42 Pa.Const.Stat.Ann. § 5521 (eff. June 27, 1978).
Section 39 remains determinative in this action, because of a savings clause which provides:
No cause of action fully barred prior to the effective date of this Act shall be revised by reason of the enactment of this Act.
Act of July 9, 1976, P.L. 586, No. 142, § 25(b), reprinted in 42 Pa.Cons.Stat.Ann. § 5521 note.
. 372 F.2d. 18 (3d Cir. 1966).
. 372 F.2d at 20.
. 282 F.Supp. 832 (E.D.Pa.1968).
. 282 F.Supp. at 840.
. Jones & Laughlin Steel Corp. v. Johns-Manville Sales Corp., 453 F.Supp. 527, 532 (W.D.Pa. 1978).
. The Ohio statute of limitations applicable to Sondra McKenna’s claim is Ohio Rev.Code Ann. § 2305.10 (Page 1954), which provides:
An action for bodily injury or injuring personal property shall be brought within two years after the cause thereof arose.
The pertinent statute for James McKenna’s derivative claim is Ohio Rev.Code Ann. § 2305.09 (Page 1954), which provides in part:
An action for any of the following causes shall be brought within four years after the cause thereof accrued:
(D) For an injury to the rights of the plaintiff not arising on contract nor enumerated in [other] sections ... of the Revised Code.
. See, e. g., Commissioner v. Estate of Bosch, 387 U.S. 456, 87 S.Ct. 1776, 18 L.Ed.2d 886 (1967); Bernhardt v. Polygraphic Co. of America, 350 U.S. 198, 76 S.Ct. 273, 100 L.Ed. 199 (1955); Becker v. Interstate Properties, 569 F.2d 1203 (3rd Cir. 1977); C. Wright, Law of Federal Courts, § 158, at 267-71 (3d ed. 1976); 1A Moore’s Federal Practice, para. 0.309, 3323-3330 (2d ed.) and id. 73-74 (1978 -79 Supp.); Kurland, Mr. Justice Frankfurter, The Supreme Court and the Erie Doctrine in Diversity Cases, 67 Yale L.J. 187 (1957); Note, Federal Interpretation of State Law — An Argument for Expanded Scope of Inquiry, 53 Minn.L.Rev. 806 (1969).
. See, e. g., Note, Federal Interpretation of State Law — An Argument for Expanded Scope of Inquiry, 53 Minn.L.Rev. 806, 811 (1969).
. Id.
. Commissioner v. Estate of Bosch, 387 U.S. 456, 465, 87 S.Ct. 1776, 1783, 18 L.Ed.2d 886 (1965). “If there be no decision by that Court then federal authorities must apply what they find to be the state law after giving ‘proper regard’ to relevant rulings of other courts of the state.” Id. The Erie Court expressly intended that federal courts were to be governed by the law of each state whether it “be declared by its legislature or by its highest court in a decision.” 304 U.S. 64, 78, 58 S.Ct. 817, 822, 82 L.Ed. 1188 (1938).
. E. g., Becker v. Interstate Properties, 569 F.2d 1203, 1205 (3d Cir. 1977) (“Inasmuch as no New Jersey cases are squarely on point, it is important to make clear that our disposition of this case must be governed by a prediction of what a New Jersey court would do if confronted with the facts before us.”); Huddell v. Levin, 537 F.2d 726, 733 (3d Cir. 1976) (“This appeal requires us to predict how the New Jersey Supreme Court would react when presented with novel and difficult questions of tort law.”); Wise v. George C. Rothwell, Inc., 496 F.2d 384, 387 (3d Cir. 1974) (“We are bound to apply the standard of care the Delaware Supreme Court would apply were it faced with the issue now before us.”). Our position is in accord with the rule accepted by a majority of the other Circuits. E. g., Soo Line R. Co. v. Fruehauf Corp., 547 F.2d 1365 (8th Cir. 1977); Gates Rubber Company v. USM Corp., 508 F.2d 603 (7th Cir. 1975); Warren Bros. Co. v. Cardi Corp., 471 F.2d 1304 (1st Cir. 1973).
It is regrettable that Ohio has not yet established a certification procedure that would enable this Court to obtain a definitive answer to the crucial question in this case from the Ohio Supreme Court. The United States Supreme Court has expressed its approval of such a procedure. Lehman Bros. v. Schein, 416 U.S.
. E. g., Becker v. Interstate Properties, 569 F.2d 1203, 1205-06 (3d Cir. 1977).
. 1A Moore’s Federal Practice, para. 0.307, at 3077 (2d ed. 1979).
. Becker v. Interstate Properties, 569 F.2d 1203, 1206 (3d Cir. 1977); Medvecz v. Choi, 569 F.2d 1221, 1226 n. 14 (3d Cir. 1977).
. Nolan v. Transocean Air Lines, 365 U.S. 293, 81 S.Ct. 555, 5 L.Ed.2d 571 (1961).
. 1A Moore’s Federal Practice, para. 0.307, at 3097 (2d ed. 1979).
. C. Wright, Law of Federal Courts, § 58, at 270 (3d ed. 1976) (“Mere obiter may be entitled to little weight, while a carefully considered statement by the state court, though technically dictum, must carry great weight, and may even, in the absence of any conflicting indication of the law of the state, be regarded as conclusive.”) (footnotes omitted).
. See Commissioner v. Estate of Bosch, 387 U.S. 456, 471, 87 S.Ct. 1776, 1785, 18 L.Ed.2d 886 (1951).
. Id. (quoting King v. Order of Travelers, 333 U.S. 153, 160-61, 68 S.Ct. 488, 492-93, 92 L.Ed. 608 (1948)), (footnotes omitted). Unlike the dissent, I am not persuaded that the lower state court and federal court decisions relied on by the defendant, see dissenting opinion at 672, either specifically address or definitively resolve the question at issue here.
. Patch v. Stanley Works, 448 F.2d 483, 488 (2d Cir. 1971).
. Id.; Ross v. Philip Morris & Co., 328 F.2d 3 (8th Cir. 1964).
. Southern Farm Bureau Cas. Ins. Co. v. Mitchell, 312 F.2d 485, 497 (8th Cir. 1963); Wendt v. Lillo, 182 F.Supp. 56, 60 (N.D.Iowa 1960).
. Note, Federal Interpretation of State Law— An Argument for Expanded Scope of Inquiry, 53 Minn.L.Rev. 806 (1976).
. Tarr v. Manchester Ins. Corp., 544 F.2d 14, 15 (1st Cir. 1978); majority opinion at 11.
. 1A Moore’s Federal Practice, para. 0.309, 3112 (2d ed. 1979).
. Becker v. Interstate Properties, 569 F.2d 1203, 1206 (1977).
. 25 Ohio St.2d 164, 267 N.E.2d 419 (1971).
. 25 Ohio St.2d at 164, 267 N.E.2d at 419, following DeLong v. Cambell, 157 Ohio St. 22, 104 N.E.2d 177 (1952); Bowers v. Santee, 99 Ohio St. 361, 124 N.E. 238 (1919); Gillette v. Tucker, 67 Ohio St. 106, 65 N.E. 865 (1902).
The Ohio Supreme Court’s consideration of the application of the “discovery rule” to statutes of limitations thus far has occurred solely in the context of actions for medical malpractice involving Ohio Rev.Code Ann. § 2305.-11 (Page 1954), rather than in the context of personal injury negligence actions under Ohio Rev.Code Ann. 2305.10 (Page 1954). The Ohio Supreme Court has noted, however, that the limitation-of-action question “obtains, in principle, irrespective of whether the case is treated as belonging under R.C. 2305.10 or under R.C. 2305.11.” Melnyk v. Cleveland Clinic, 32 Ohio St.2d 198, 201 n. 1, 290 N.E.2d 916, 917 n. 1 (1973).
. See Gillette v. Tucker, 67 Ohio St. 106, 65 N.E. 865 (1902).
. See, e. g. Fee’s Administrator v. Fee, 10 Ohio 469 (1891) (action for trespass on property). In the usual case — when the act constituting negligence causes direct and immediate injury — the action accrues and the period of limitations runs from the date of the act. When the negligent act is injurious only in its consequences, however, Ohio courts have held that the cause accrues and the limitations run only from the time that some consequential injury or damage manifests itself. In Cook v. Yager, 13 Ohio App.2d 1, 233 N.E.2d 326 (1968), for example, the syllabus stated that where the negligent act “causes no contemporaneous injury or damage to the patient but the forces set in motion by such violation proximately cause injury or damage thereafter, then, . . the cause and the statute of limitations pertaining to the cause of action does not begin to run until the date such consequential injury or damage first manifests itself.” 13 Ohio App.2d at 10-11, 233 N.E.2d at 332; see Brush Beryllium Co. v. Meckley, 284 F.2d 797 (6th Cir. 1960). This principle of Ohio law apparently accords with the majority rule:
As a general rule, the occurrence of an act or omission, whether it is a breach of contract*664 or of duty, whereby one sustains a direct injury, however slight, starts the statute of limitations running against the right to maintain an action. It is sufficient if nominal damages are recoverable for the breach or for the wrong, and where that is the case it is unimportant that the actual or substantial damage is not discovered or does not occur until later.
51 Am.Jur.2d Limitation of Actions § 109, at 681 (1970).
In the present case, the district court determined that consequential injury or damage resulting from Mrs. McKenna’s ingestion of Or-tho-Novum manifested itself, at the latest, in 1969 when Mrs. McKénna developed hypertension. Although the classification of this development, rather than the occurrence of Mrs. McKenna’s transient ischemia attacks or excruciating headaches or, for that matter, the occurrence of the cerebrovascular stroke in 1972, as the first manifestation of consequential injury or damage seems somewhat arbitrary, it nonetheless appears consistent with the applicable principles of Ohio law.
. 25 Ohio St.2d at 168, 267 N.E.2d at 421.
. Id.
. Id.
. Id.
. 25 Ohio St.2d at 170-71, 267 N.E.2d at 423.
. Id.
. Id.
. 25 Ohio St.2d at 172, 267 N.E.2d at 424.
. 32 Ohio St.2d 198, 290 N.E.2d 916 (1972).
. 32 Ohio St.2d at 201, 290 N.E.2d at 918.
. 32 Ohio St.2d at 200, 290 N.E.2d at 917.
. 6 Akron L.Rev. 265, 273 (1973).
. 25 Ohio St.2d at 170, 267 N.E.2d at 423.
. 6 Akron L.Rev. 265, 272 (1973).
. 25 Ohio St.2d at 171-72, 267 N.E.2d 419, 423-24.
. Berry v. Branner, 245 Or. 307, 311, 421 P.2d 996, 998 (1966).
. Ohio Rev.Code Ann. § 2305.10 (Page 1954). The provision pertinent to Mr. McKenna’s derivative claim is similarly phrased, but states that such actions “shall be brought within four years after the cause thereof occurred . ..” Ohio Rev.Code Ann. § 2305.09 (Page 1954).
. 6 Akron L.Rev. 265, 273 (1973).
. A further indication that the legislature did not intend to preclude judicial adoption of the discovery doctrine was provided by the recent amendment of the medical malpractice statute. Even though that statute still allows a one year period of limitations for such actions, the judiciary’s role in determining when a cause of
Moreover, without deciding the issue the court in Melnyk suggested that as a result of an amendment to the Ohio Constitution, Ohio’s statutes of limitation may now have “become the sole demesne of the [Ohio Supreme] Court.” 32 Ohio St.2d at 200 n. 3, 290 N.E.2d at 917 n. 3. As amended, Article IV, Section 5(B) of the Ohio Constitution now provides in part: “The supreme court shall prescribe rules governing practice and procedure in all courts of the state, which rules shall not abridge, enlarge or modify any substantive rights.”
. Under the longstanding Ohio “syllabus rule,” only that which is stated in a syllabus or in an per curiam opinion represents an accurate and authoritative statement of law by the Ohio Supreme Court. E. g., In State ex rel. Canada v. Phillips, 168 Ohio St. 191, 200, 151 N.E.2d 722, 724 (1958).
. Dissenting opinion typescript at 670.
. Medvecz v. Choi, 569 F.2d 1221, 1226 (1977).
. Becker v. Interstate Properties, 569 F.2d 1203, 1206 (1977).
. Id. at 1215-16 (Hunter, J., dissenting).