Baker v. Beech Aircraft Corp.

96 Cal. App. 3d 321, 157 Cal. Rptr. 779, 1979 Cal. App. LEXIS 2071
CourtCalifornia Court of Appeal
DecidedAugust 24, 1979
DocketCiv. 19929
StatusPublished
Cited by11 cases

This text of 96 Cal. App. 3d 321 (Baker v. Beech Aircraft Corp.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker v. Beech Aircraft Corp., 96 Cal. App. 3d 321, 157 Cal. Rptr. 779, 1979 Cal. App. LEXIS 2071 (Cal. Ct. App. 1979).

Opinion

Opinion

McDANIEL, J.

A Beech Bonanza aircraft crashed on October 16, 1968, near Las Cruces, New Mexico, killing two persons, including the pilot, and severely injuring a third whose legs eventually had to be amputated. The underlying litigation was brought by the families of the two decedents and the survivor of the crash (plaintiffs) against the manufacturer of the Bonanza, Beech Aircraft Corporation (defendant), on the alleged theory that the crash was the result of defectively designed fuel tanks.

The action was filed substantially more than one year after the date of the crash, and after successive efforts to amend to avoid the bar of the statute of limitations, the trial court sustained without leave to amend defendant’s demurrer to plaintiffs’ third amended complaint.

Plaintiffs’ appeal from the judgment of dismissal which followed the successful demurrer noted was dealt with by this court in Baker v. Beech Aircraft Corp., 39 Cal.App.3d 315 [114 Cal.Rptr. 171, 91 A.L.R.3d 981], and therein we reversed the trial court. We held that plaintiffs had *325 effectively pleaded facts, 1 which if proved, would have tolled the statute of limitations and that therefore, for purposes of demurrer, the action had been timely filed after discovery of the purported fraud. (Id., at p. 325.)

After the reversal noted, and when the case came on for trial, the trial court granted defendant’s motion to bifurcate, more particularly to try first the special affirmative defense of the statute of limitations. As a consequence, the ultimate issue presented for determination by the jury in this current phase of the case was whether the statute of limitations began to run more than one year before May 24, 1972, the date on which the action was filed, i.e., whether the statute was tolled to a time after *326 May 24, 1971. Thus, the purpose of the trial was to test the validity of the allegations noted in the margin with reference to events occurring on or before May 24, 1971.

At the outset of the trial and during opening statements by counsel, a stipulation was read to the jury which related, “[plaintiffs contend that a defect in the fuel system of the S-35 Bonanza aircraft involved in this case caused this accident. This alleged defect is known as unporting of fuel and results in fuel starvation to the aircraft’s engine. [¶] The subject of the unporting will be explained to you during the presentation of evidence. Beech denies that any alleged defect caused the accident, but for the purpose of deciding the issues that will be presented to you in this trial, you may assume that the Plaintiffs’ contention as [to] the cause of the accident is correct.” Thereafter, the trial proceeded for 45 days, and at the trial’s conclusion the jury brought in a verdict for defendant. The plaintiffs appealed.

Issues and Discussion

The theory upon which plaintiffs undertook to make a case for tolling the statute of limitations was that defendant, while being well aware of the purported defect in the design of the fuel tanks installed in the crashed Bonanza, fraudulently misrepresented to and concealed material facts from the public and the Federal Aviation Administration (FAA) with reference thereto. Plaintiffs allege that these misrepresentations and concealments were such as to prevent plaintiffs, as members of the public, from “discovering” that they had a cause of action until they read an article, appearing in the July 30, 1971, issue of the Wall Street Journal, brought to their attention by friends about 30 days before the action was filed.

However, the assignments of error on appeal are only peripheral in terms of the actual evidence offered by both sides on the fraudulent misrepresentation and concealment issue. 2 More particularly, plaintiffs *327 contend: (1) There was reversible error committed in the form of the instructions given to the jury concerning the plaintiffs’ burden of proof; (2) there was reversible error committed in the form of the instructions given to the jury concerning plaintiffs’ duty to discover the fraudulent concealment of defendant; and (3) there was reversible error committed when the court failed to allow the jury to consider evidence allegedly critical to the plaintiffs’ case by excluding two items of documentary evidence, i.e., an article from the Wall Street Journal, exhibit No. 2, and a Government Accounting Office Report (GAO Report), exhibit No. 58.

Before proceeding to a discussion of the arguments both in support of and in opposition to the actual assignments of error, and in aid of an evaluation of the propriety of the jury instructions and evidentiary rulings, it is appropriate to note what plaintiffs had to establish as a matter of proof to be entitled to a verdict that the statute of limitations had been tolled. In the earlier appeal of the pleading question, we noted, “[i]n order to establish fraudulent concealment, the complaint must show: (1) when the fraud was discovered; (2) the circumstances under which it was discovered; and (3) that the plaintiff was not at fault for failing to discover it or had no actual or presumptive knowledge of facts sufficient to put him on inquiry. [Citation.] In urging lack of means of obtaining knowledge, it must be shown that in the exercise of reasonable diligence the facts could not have been discovered at an earlier date. [Citation.] ‘The existence of such fraud must be alleged clearly and unequivocally, and must not rest upon inferences.’ [Citations.]” (Baker v. Beech Aircraft Corp., supra, 39 Cal.App.3d 315, 321.) What we said there was said with reference to pleading, but the same principles equally apply here where the plaintiffs’ task was to prove what they had alleged.

Amplifying the principles here noted, Witkin observes, “[t]he rule is that the plaintiff must plead and prove the facts showing: (a) Lack of knowledge, (b) Lack of means of obtaining knowledge (in the exercise of reasonable diligence the facts could not have been discovered at an earlier date), (c) How and when he did actually discover the fraud or mistake. Under this rule constructive or presumed notice or knowledge are equivalent to knowledge. So, when the plaintiff has notice or information of circumstances to put a reasonable person on inquiry, or has the opportunity to obtain knowledge from sources open to his investigation (such as public records or corporation books), the statute *328 commences to run.” (2 Witkin, Cal. Procedure (2d ed. 1970) Actions, § 339, pp. 1180-1181, original italics.) Additionally, it also is the rule that mere ignorance of the nature and extent of the operative facts causing a personal injury and giving rise to a cause of action, where such ignorance has not been induced by fraud, will not prevent the running of the statute of limitations to bar a personal injury action. (Rubino v. Utah Canning Co., 123 Cal.App.2d 18, 28 [266 P.2d 163].)

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Bluebook (online)
96 Cal. App. 3d 321, 157 Cal. Rptr. 779, 1979 Cal. App. LEXIS 2071, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-v-beech-aircraft-corp-calctapp-1979.