Boudreau v. Baughman

368 S.E.2d 849, 322 N.C. 331, 6 U.C.C. Rep. Serv. 2d (West) 1393, 1988 N.C. LEXIS 366
CourtSupreme Court of North Carolina
DecidedJune 2, 1988
Docket409PA87
StatusPublished
Cited by281 cases

This text of 368 S.E.2d 849 (Boudreau v. Baughman) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boudreau v. Baughman, 368 S.E.2d 849, 322 N.C. 331, 6 U.C.C. Rep. Serv. 2d (West) 1393, 1988 N.C. LEXIS 366 (N.C. 1988).

Opinions

[333]*333MARTIN, Justice.

The sole issue for review on this appeal is whether the trial court properly granted defendants’ motion for summary judgment. As a preliminary matter, however, this case poses a choice of law dilemma. We must determine which statute of repose applies to this products liability action: that of North Carolina, the forum state, or that of Florida, the state where the injury occurred. We hold that the Florida statute of repose applies and that summary judgment was inappropriately entered on plaintiffs negligence and strict liability claims.

Plaintiff brought this action on 5 March 1985, naming as defendant in both an individual and a corporate capacity the North Carolina designer of a chrome-plated, tub-style chair designated as model number 1183. The complaint alleged that plaintiff, a resident of Massachusetts, had injured his foot on the metal surface of the chair in question while visiting friends in Florida. Plaintiff claimed compensatory and punitive damages based on theories of negligent design, breach of implied warranty of merchantability, breach of implied warranty of fitness for a particular purpose, and strict liability for injecting an inherently dangerous product into the stream of commerce.

Defendants’ answer denied the material allegations of the complaint and asserted defenses of, inter alia, contributory negligence, independent negligence of the chair’s manufacturer, accord and satisfaction, and lack of personal jurisdiction. On 24 June 1986, defendants moved for summary judgment. On 14 July 1986, defendants were permitted to amend their answer to include a further defense based on North Carolina statutes of repose. Thereafter the trial judge granted summary judgment in defendants’ favor. The Court of Appeals affirmed.

Plaintiff contends that the applicable statute of repose is Florida Statutes § 95.031(2), which provides as follows:

Actions for products liability and fraud under s. 95.11(3) must be begun within the period prescribed in this chapter, with the period running from the time the facts giving rise to the cause of action were discovered or should have been discovered with the exercise of due diligence, instead of running from any date prescribed elsewhere in s. 95.11(3), but in any [334]*334event within 12 years after the date of delivery of the completed product to its original purchaser or within 12 years after the date of the commission of the alleged fraud, regardless of the date the defect in the product or the fraud was or should have been discovered.1

(Emphasis added.)

Defendants, on the other hand, maintain that N.C.G.S. § 1-50(6) controls. Section 1-50(6) provides:

No action for the recovery of damages for personal injury, death or damage to property based upon or arising out of any alleged defect or any failure in relation to a product shall be brought more than six years after the date of initial purchase for use or consumption.

The record indicates that defendants sold the design for model number 1183 to Thayer-Coggin, Inc., a North Carolina furniture manufacturer, in 1967. Thayer-Coggin manufactured the chair and sold it to a furniture store in Florida, which in turn sold it to plaintiffs Floridian hosts on 26 January 1979. Plaintiffs injury occurred on 7 March 1982 and the complaint was filed on 5 March 1985. Applying these dates, plaintiff brought the action within the twelve-year period prescribed by the Florida statute but not within the six-year period prescribed by N.C.G.S. § 1-50(6). Defendants therefore contend that plaintiffs action is time-barred under North Carolina law.2

[335]*335Our choice of law analysis is somewhat complicated by the fact that plaintiff raises four distinct theories of recovery in four separate counts of the complaint. We first address plaintiffs claims of negligence and strict liability.

Our traditional conflict of laws rule is that matters affecting the substantial rights of the parties are determined by lex loci, the law of the situs of the claim, and remedial or procedural rights are determined by lex fori, the law of the forum. Charnock v. Taylor, 223 N.C. 360, 26 S.E. 2d 911 (1943). For actions sounding in tort, the state where the injury occurred is considered the situs of the claim. Thus, under North Carolina law, when the injury giving rise to a negligence or strict liability claim occurs in another state, the law of that state governs resolution of the substantive issues in the controversy. Leonard v. Johns-Manville Sales Corp., 309 N.C. 91, 305 S.E. 2d 528 (1983); Bernick v. Jurden, 306 N.C. 435, 293 S.E. 2d 405 (1982); Howard v. Howard, 200 N.C. 574, 158 S.E. 101 (1931); Williams v. General Motors Corp., 19 N.C. App. 337, 198 S.E. 2d 766, cert. denied, 284 N.C. 258, 200 S.E. 2d 659 (1973).

This Court has consistently adhered to the lex loci rule in tort actions. Smith, Choice of Law in the United States, 38 Hastings L.J. 1041 (1987); Wurfel, Choice of Law Rules in North Carolina, 48 N.C.L. Rev. 243 (1970); see, e.g., Henry v. Henry, 291 N.C. 156, 229 S.E. 2d 158 (1976); Young v. R.R., 266 N.C. 458, 146 S.E. 2d 441 (1966); Petrea v. Tank Lines, 264 N.C. 230, 141 S.E. 2d 278 (1965); Frisbee v. West, 260 N.C. 269, 132 S.E. 2d 609 (1963); [336]*336Shaw v. Lee, 258 N.C. 609, 129 S.E. 2d 288 (1963). We note that this continues to be the majority rule in the United States. Smith, Choice of Law in the United States, 38 Hastings L.J. 1041, app. at 1172-74; Kay, Theory into Practice: Choice of Law in the Courts, 34 Mercer L. Rev. 521, 582 & app. at 591-92 (1983). We see no reason to abandon this well-settled rule at this time. It is an objective and convenient approach which continues to afford certainty, uniformity, and predictability of outcome in choice of law decisions. We hold that the substantive law of Florida applies to plaintiffs negligence and strict liability claims.

We next consider the choice of law question with respect to plaintiffs breach of warranty claims. A warranty, express or implied, is contractual in nature. Wyatt v. Equipment Co., 253 N.C. 355, 117 S.E. 2d 21 (1960). Traditionally, under the lex loci rule, the substantive features of warranty claims were controlled by the law of the state where the contract was made or, in certain instances, by the law of the state of performance. Bernick v. Jurden, 306 N.C. 435, 293 S.E. 2d 405. However, actions for breach of implied warranty are now governed by the Uniform Commercial Code, adopted in North Carolina in 1965 as chapter 25 of the General Statutes. The Uniform Commercial Code applies to warranty claims in products liability actions. See Morrison v. Sears, Roebuck & Co., 319 N.C. 298, 354 S.E. 2d 495 (1987); Berwick v. Jurden, 306 N.C. 435, 293 S.E. 2d 405; Smith v. Cessna Aircraft Co., 571 F. Supp. 433 (M.D.N.C. 1983); Freedman, Products Liability under the Uniform Commercial Code, 10 Prac. Law 49, 50 (No. 4, 1964).

The Uniform Commercial Code is generally in accord with prior North Carolina law on the subject of warranties. See N.C.G.S., North Carolina Comment, introduction to art. 2, ch. 25 (1986).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Taylor v. Bank of America, N.A.
Supreme Court of North Carolina, 2024
Hinman v. Cornett
Court of Appeals of North Carolina, 2023
D.V. Shah Corp. v. Vroombrands
Court of Appeals of North Carolina, 2022
Gaston Cty. Bd. of Educ. v. Shelco
Court of Appeals of North Carolina, 2022
Izzy Air, LLC v. Triad Aviation
Court of Appeals of North Carolina, 2022
KING v. ETHICON, INC.
D. New Jersey, 2022
Cunningham v. Goodyear Tire & Rubber Co.
Supreme Court of North Carolina, 2022
Johnston v. Pyka
Court of Appeals of North Carolina, 2022
Dep't of Transp. v. Bloomsbury Est.
Court of Appeals of North Carolina, 2022
Davis v. Lake Junaluska Assembly
Court of Appeals of North Carolina, 2022
Phillips v. MacRae
Court of Appeals of North Carolina, 2021
Warren Cty. DSS v. Garrelts
Court of Appeals of North Carolina, 2021
NC Farm Bureau Mut. Ins. Co., Inc. v. Lanier L. Grp.
Court of Appeals of North Carolina, 2021
Murray v. Deerfield Mobile Home Park
Court of Appeals of North Carolina, 2021
George v. Lowe's Cos.
Court of Appeals of North Carolina, 2020
Cox, Sr. v. AGCO Corporation
E.D. North Carolina, 2020
SciGrip, Inc. v. Osae
Supreme Court of North Carolina, 2020

Cite This Page — Counsel Stack

Bluebook (online)
368 S.E.2d 849, 322 N.C. 331, 6 U.C.C. Rep. Serv. 2d (West) 1393, 1988 N.C. LEXIS 366, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boudreau-v-baughman-nc-1988.