Cherpak v. Newell Manufacturing Corp.

720 F. Supp. 19, 1989 U.S. Dist. LEXIS 11189, 1989 WL 108024
CourtDistrict Court, E.D. New York
DecidedSeptember 18, 1989
DocketCV 88-4034
StatusPublished
Cited by8 cases

This text of 720 F. Supp. 19 (Cherpak v. Newell Manufacturing Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cherpak v. Newell Manufacturing Corp., 720 F. Supp. 19, 1989 U.S. Dist. LEXIS 11189, 1989 WL 108024 (E.D.N.Y. 1989).

Opinion

MEMORANDUM AND ORDER

WEXLER, District Judge.

Plaintiffs John and Jenney Cherpak commenced this personal injury lawsuit seeking recovery for injuries allegedly sustained when John Cherpak suffered an on the job injury. Named as defendants are Newell Manufacturing Corporation (“New-ell”), Texas Shredder Parts (“TSP”) and Van Gorp Corp. (“Van Gorp”). Newell, the manufacturer of the machine that allegedly injured plaintiff, has commenced a third party action against Gershow Recycling, John Cherpak’s employer. TSP and Van Gorp are named as defendants because they allegedly manufactured component parts for the machine at issue.

*20 Presently before the Court are the motions of Van Gorp and TSP. Both defendants seek dismissal of the complaint on the grounds that the statute of limitations has run and plaintiffs have not properly effected service. For the reasons set forth below, defendants’ motions are granted.

I. Background

As noted above, plaintiffs seek recovery for injuries that allegedly stem from an on the job accident. The accident occurred on February 6, 1986 in Suffolk County, New York. On February 3, 1989, three days prior to the expiration of the applicable three year statute of limitations, plaintiffs filed their complaint against defendant TSP with the Clerk of the Court for the Eastern District of New York. On February 6, 1989 a complaint against defendant Van Gorp was similarly filed with the Clerk of this Court.

After filing the pleadings against Van Gorp and TSP, plaintiffs attempted to effectuate service on the defendants pursuant to New York’s Business Corporation Law (“BCL”). When construing the facts most favorably for the plaintiff, it is clear that service was not completed until after expiration of the three year statute of limitations but prior to sixty days after that expiration.

II. The Motions

Defendants’ motions share the common legal argument that a federal plaintiff may not take advantage of the sixty day extension of statutes of limitation provided for in New York’s Civil Practice Law and Rules (“CPLR”). In addition, defendant TSP takes issue with the plaintiffs’ compliance with the BCL while defendant Van Gorp alleges that plaintiffs’ breach of warranty claim is untimely.

For the reasons set forth below, the Court holds that the CPLR’s sixty day extension of the statute of limitations cannot be applied in a federal forum. Accordingly, the moving defendants’ motions to dismiss must be granted and it is unnecessary to reach the remaining arguments.

III.Discussion

A. Applicability of CPLR Section 203(b)(5)

Where, as here, a plaintiff commences a lawsuit pursuant to this Court's diversity jurisdiction, New York law governs the issue of when the statute of limitations is tolled. Walker v. Armco Steel Corp., 446 U.S. 740, 100 S.Ct. 1978, 64 L.Ed.2d 659 (1980). Under New York law a claim is “interposed” and the statute of limitations is tolled when the defendant is served. N.Y.Civ.Prac. L & R Section 203(b) (McKinney 1988).

New York law also provides, under certain circumstances, for a tolling of the statute of limitations if the plaintiff delivers the summons to an appropriate public official and thereafter serves the defendant within sixty days after the statute of limitations would otherwise have expired. The appropriate public official to whom the summons is delivered is set forth in the statute.

Specifically, Section 203(b)(5) of the CPLR (“Section 203(b)(5)”) provides that if a summons is delivered to the sheriff of a county outside of the City of New York or the Clerk of the County within the City of New York, plaintiff’s claim will be interposed as of the date of that delivery so long as plaintiff properly serves the defendant within sixty days of the running of the applicable statute of limitations. Where, as here, the defendant is a corporation, the sheriff or clerk of the county where the cause of action arose may be served with the summons. See N.Y.Civ.Prac. L & R section 203(b)(5) (McKinney Supp.1989).

Although plaintiffs concede that service under the BCL was not complete until after the running of the applicable three year statute of limitations, they argue that the filing of the summonses with the Clerk of this Court enables them to take advantage of the sixty day extension provided for in the CPLR. Arguing that a federal court sitting in diversity may not apply CPLR Section 203(b)(5), the moving defendants argue that plaintiffs’ claims are untimely.

*21 At the outset, the Court notes that several courts within this Circuit have been called upon to decide the applicability of Section 203(b)(5) in a federal forum. Although the Second Circuit Court of Appeals has yet to rule on this issue, several district courts considering the issue have held that a federal plaintiff is entitled to take advantage of the sixty day extension. See, e.g., Gold v. Jeep Corp., 579 F.Supp. 256, 258 (E.D.N.Y.1984); Aro v. Lichtig, 537 F.Supp. 599, 600 (E.D.N.Y.1982); Somas v. Great American Ins. Co., 501 F.Supp. 96, 96-97 (S.D.N.Y.1980); Zarcone v. Condie, 62 F.R.D. 563, 567-68 (S.D.N.Y.1974).

Those courts allowing a federal plaintiff to take advantage of the sixty day extension have done so on the theory that a federal plaintiff is entitled to the same rights he would have enjoyed if he commenced his action in state court. See, e.g., Aro, 537 F.Supp. at 600; Somas, 501 F.Supp. at 97. In their efforts to reach what is deemed an equitable result, federal courts have substituted either the Clerk of the federal court or a federal marshal as the appropriate official for service of federal process sufficient to invoke the sixty day extension. See, e.g., Gold, 579 F.Supp. at 258 (allowing service on the Clerk of the Court); Zarcone, 62 F.R.D. at 568 (allowing service on federal Marshal).

Most recently, however, the District Court for the Northern District of New York rejected application of Section 203(b)(5) in a diversity lawsuit. See Personis v. Oiler, 714 F.Supp. 617 (N.D.N.Y.1989). For the reasons that follow, this Court agrees with the approach in Personis and holds that Section 203(b)(5) has no application where a plaintiff chooses to bring his state court action in a federal forum.

At the outset the Court notes that the legislative purpose behind the enactment of Section 203(b)(5) is unclear. See Gold, 579 F.Supp. at 258. Thus, it is difficult to ascertain whether application of the sixty day extension in a federal forum would further the purpose the New York legislature envisioned when drafting the statute. If this Court assumes, as did the District Court in Personis, that Section 203(b)(5) was enacted as a revenue producing measure, see also Dowling v. Hillcrest General Hospital,

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720 F. Supp. 19, 1989 U.S. Dist. LEXIS 11189, 1989 WL 108024, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cherpak-v-newell-manufacturing-corp-nyed-1989.