Busch v. Service Plastics, Inc.

261 F. Supp. 136, 11 Ohio Misc. 131, 39 Ohio Op. 2d 456, 1966 U.S. Dist. LEXIS 7538
CourtDistrict Court, N.D. Ohio
DecidedSeptember 12, 1966
DocketCiv. A. C 65-743, C 65-744
StatusPublished
Cited by31 cases

This text of 261 F. Supp. 136 (Busch v. Service Plastics, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Busch v. Service Plastics, Inc., 261 F. Supp. 136, 11 Ohio Misc. 131, 39 Ohio Op. 2d 456, 1966 U.S. Dist. LEXIS 7538 (N.D. Ohio 1966).

Opinion

MEMORANDUM

WILLIAM K. THOMAS, District Judge.

Defendant Service Plastics, Inc., an Illinois corporation, moves to quash service of summons of plaintiff’s amended complaint in each of these companion actions. On February 28, 1966 summons was served upon Ohio’s Secretary of State, Ted W. Brown. As further required by Sections 2307.381 through .385 of the Ohio Revised Code, a true copy of the summons and a copy of the amended complaint were sent by registered mail, return receipt requested, to defendant Service Plastics, Inc., at Elkpark Village, Chicago, Illinois. Signed registry receipt of the defendant was attached to the summons.

In Count One of her amended complaint, plaintiff Helen Busch, among other things, alleges that

Service Plastics, Inc. is an Illinois Corporation with its principal place of business in the State and engaged in the manufacturing business and specifically engaged in the manufacturing and sale of plastic type milk bottle handles from which it derives substantial revenue in this state, and which it might reasonably have expected plaintiff, who is a member of the purchasing public, to use.

Plaintiff further says that

on or about May 31, 1964 she was a customer in a retail store located at East 110th Street and Grandview Avenue, Cleveland, Ohio, operated by the Lawson Milk Company.

*139 On said day she says that

she purchased, among other things, a gallon bottle of Lawson Milk; further as she was in the process of carrying the said gallon bottle of milk, the plastic handle with which she gripped the bottle disintegrated in her hand and the bottle was caused to drop to the hard surface below and pieces of the said bottle were driven into the plaintiff’s left foot at approximately the ankle level of the plaintiff’s left foot.

Plaintiff states that a jagged laceration to the plaintiff’s left heel “severed what is medically referred to as the Tendon of Achilles.” She describes extensive resulting disability, and states that she believes that “the effect of said injury will continue for a long time in the future.” She asks for $30,000 in damages.

As the essence of her cause of action the plaintiff states that:

her injury resulted wholly, solely and proximately as a result of the defendant’s breach of implied warranty in permitting the plaintiff to take possession of a defective bottle handle when it knew or in the exercise of ordinary care should have known that the said bottle handle was defective and unfit for the use for which it was intended.

In Count Two of her complaint after incorporating the allegations of the first count, plaintiff says further that her injury was the result

of the negligence of this defendant in manufacturing and permitting said plaintiff to take possession of a defective bottle handle when it knew or, in the exercise of ordinary care, should have known that the said bottle handle was defective and not fit for the use to which it was intended.

It appears that Count One speaks of defendant’s breach of implied warranty while Count Two mentions defendant’s negligence. But it is evident that’both counts relate to the same claim of injury resulting from a defective bottle handle. Both claims appear to assert the same tort, growing out of a breach of implied warranty. The Supreme Court of Ohio recognized tort actions based on a breach of implied warranty despite the absence of privity of contract in the case of Lonz-rick v. Republic Steel Corp., 6 Ohio St. 2d 227, 218 N.E.2d 185 (1966).

The complaint of Anthony Busch, husband of Helen, also contains two counts similarly alleging breach of implied warranty by defendant Service Plastics, Inc., and negligence.

He seeks damages from defendant in the sum of $12,500 for his wife’s medical expenses and loss of his wife’s companionship, consortium, and services.

While not attacking the constitutionality of Ohio Revised Code Sections 2307.381-.385, Ohio’s long-arm law, effective September 28, 1965, the defendant in its motion contends that Ohio Revised Code Section 2307.382 cannot be applied to secure substituted service over the person of the defendant, an Illinois corporation. The defendant is said to lack “the minimum contacts” in Ohio which do “not offend traditional notions of fair play and substantial justice,” a standard of due process under the fourteenth amendment of the federal constitution adopted by the United, States Supreme Court in International Shoe Co. v. State of Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945). The “minimum contacts” standard was affirmed in Travelers Health Association v. Com. of Virginia ex rel. State Corp. Comm., 339 U.S. 643, 70 S.Ct. 927, 94 L. Ed. 1154 (1950); Perkins v. Benguet Consol. Mining Co., 342 U.S. 437, 72 S.Ct. 413, 96 L.Ed. 485 (1952), McGee v. International Life Insurance Co., 355 U.S. 220, 78 S.Ct. 199, 2 L.Ed.2d 223 (1957) and in Hanson v. Denckla, 357 U.S. 235, 78 S.Ct. 1228, 2 L.Ed.2d 1283 (1958).

Acknowledging the aptness of the “minimum contacts” standard, the plaintiffs insist that each of the first five subsections of Ohio Revised Code Section 2307.382 can justify the substituted service of process secured upon the defendant in accordance with the Ohio long-arm law.

*140 With Ohio’s long-arm law not yet a year old it is not surprising that Ohio appellate court decisions construing its provisions are not reported, and have not been discovered. This court’s best judgment of how the Supreme Court of Ohio would construe the new statute will be exercised, qualified only by this court’s duty to interpret the statute in conformity with controlling federal decisions on the due process clause of the fourteenth amendment. ■

Ohio Revised Code Section 2307.382 commences by stating

(A) A court may exercise personal jurisdiction over a person who acts directly or by an agent, as to a cause of action arising from the person’s: [there follows 7 subparagraphs]

Subsection (B) then completes Section 2307.382 by stating

When jurisdiction over a person is based solely upon this section, only a cause of action arising from acts enumerated in this section may be asserted against him.

Subsection 2307.382 (A) . (1) reads: “Transacting any business in this state * * * ”. This subparagraph permits any business transaction occurring in this state to be the basis for obtaining substituted service upon its participants in a cause of action arising out of the transaction.

Subsection 2307.382 (A) (2) reads: “Contracting to supply services or goods in this state * * * ”.

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Bluebook (online)
261 F. Supp. 136, 11 Ohio Misc. 131, 39 Ohio Op. 2d 456, 1966 U.S. Dist. LEXIS 7538, Counsel Stack Legal Research, https://law.counselstack.com/opinion/busch-v-service-plastics-inc-ohnd-1966.