Grossman v. ARISTECH CHEMICAL CORPORATION

882 F. Supp. 110, 1994 U.S. Dist. LEXIS 16944, 1994 WL 780910
CourtDistrict Court, W.D. Michigan
DecidedNovember 14, 1994
Docket5:93-cv-00053
StatusPublished
Cited by7 cases

This text of 882 F. Supp. 110 (Grossman v. ARISTECH CHEMICAL CORPORATION) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grossman v. ARISTECH CHEMICAL CORPORATION, 882 F. Supp. 110, 1994 U.S. Dist. LEXIS 16944, 1994 WL 780910 (W.D. Mich. 1994).

Opinion

MEMORANDUM OPINION AND ORDER OF THE COURT

McKEAGUE, District Judge.

This case presents fundamentally a personal injury action. The Court’s jurisdiction is invoked based on diversity of citizenship, 28 U.S.C. § 1332. Now before the Court are several motions to declare the governing law. The Court has duly considered the motions and responses, and heard oral arguments on October 18, 1994.

*112 Plaintiff Constance Grossman is an employee of MWR, Inc., a Michigan corporation. MWR had entered into a contract with Aris-tech Chemical Corporation to prepare a treatability study workplan for soil contamination extraction at Aristeeh’s facility in Hav-erhill, Ohio. Plaintiff was performing services at the Haverhill facility pursuant to the contract on November 15, 1991, when she was allegedly overcome by fumes and sustained injury. She alleges her injury was caused by the negligence of Aristech and of several other defendants who were transporting chemicals then situated at the Haver-hill facility.

I. CHOICE OF LAW: PLAINTIFF’S CLAIMS

Defendants Union Tank Car Co., Inc. and Koch Nitrogen Company have moved the Court to apply Ohio law to plaintiffs claims against them. Neither plaintiff nor any other party has filed objection.

Michigan’s choice of law principles govern in this diversity action, and recognize, under the facts of this case, that there is “rational reason” to apply the law of Ohio to plaintiffs tort claims. See Mahne v. Ford Motor Co., 900 F.2d 83, 85, 87 (6th Cir.1990). Because plaintiffs injury occurred in Ohio and all of the defendants are alleged to be liable for actions taken while conducting business in Ohio, it is apparent that Ohio’s interests in having its law applied are superior to those of Michigan. See id. Lex loci delicti controls; Ohio law displaces the law of the forum state.

Accordingly, the motions of Union Tank Car Co., Inc. and Koch Nitrogen Company are hereby GRANTED. Adjudication of plaintiffs claims against all seven defendants shall be governed by the substantive law of Ohio.

II. CHOICE OF LAW: THIRD-PARTY CLAIMS OF DEFENDANT AR-ISTECH

Defendant and third-party plaintiff Aris-tech asks the Court to apply Michigan law to enforcement of its claim for contractual indemnification against plaintiffs employer, MWR. This motion is contested; MWR urges the Court to apply Ohio law to the indemnification claim. Because the contract between Aristech, a Delaware corporation doing business in Ohio, and MWR, a Michigan corporation, does not specify which state law governs interpretation and enforcement of the contract, the Court must evaluate several factors.

The first of these is determination of the state in which the contract was made. Generally, under Michigan law, the nature and effect of a contract are determined by the law of the place where the contract was made. Meijer, Inc. v. General Star Indemnity Co., 826 F.Supp. 241, 244 (W.D.Mich. 1993). A contract is deemed to have been made in the state where the last act necessary to create a binding agreement occurred. Id.

It is uncertain whether the instant contract was formed (1) by MWR’s telephonic acceptance of Aristech’s offer on November 8, 1991, in Michigan; or (2) by MWR’s partial performance in Michigan and Ohio prior to November 18,1991; or (3) by MWR’s receipt and signing of the purchase order on November 18, 1991, in Michigan. Regardless of which event is deemed the last act necessary to create a binding agreement, however, it is apparent, and MWR does not seriously dispute, that the contract was made in Michigan.

Yet, this conclusion does not necessarily control. If a contract is to be performed in a place other than where it was made, the law of the place of performance governs. Meijer, supra, 826 F.Supp. at 244. This contract indisputably required performance by MWR both in Michigan and Ohio. The evidence presented is controverted and does not permit the Court to rule, however, which state was the primary place of performance. Suffice it to say that significant performance took place in both states.

Aristech argues that where significant performance occurs in more than one state, the law of the state where the contract was made should control. This argument is too simplistic. Recent caselaw from this district, applying Michigan choice of law princi- *113 pies, evinces a trend toward employing the “most significant relationship” choice of law rule from the Restatement (Second) of Conflict of Laws. Meijer, supra, 826 F.Supp. at 246; CPC Int'l Inc. v. Aerojet-General Corp., 825 F.Supp. 795, 807 (W.D.Mich.1993); Chrysler Corp. v. Skyline Indus. Services, Inc., 199 Mich.App. 366, 370, 502 N.W.2d 715 (1993). In other words, where the place of performance is not the same as the place of contracting, but is not clearly defined, the Court should consider the factors enumerated in the Restatement, summarized in Mei-jer, at p. 245, as follows:

The Restatement (Second) of Conflict of Laws Section 188 provides:

(1) The rights and duties of, the parties with respect to the issue in contract are determined by the local law of the state which, with respect to that issue, has the most significant relationship to the transaction and the parties under the principles stated in § 6.
(2) In the absence of an effective choice of law by the parties ... the contacts to be taken into account applying the principles of § 6 to determine the law applicable to an issue include:
(a) the place of contracting,
(b) the place of negotiating the contract,
(c) the place of performance,
(d) the location of the subject matter of the contract, and
(e) the domicil [sic], residence, nationality,. place of incorporation and place of business of the parties
These contacts are to be evaluated according to their relative importance with respect to the particular issue.

Section 6, referred to in Section 188, provides:

(1) A court, subject to constitutional restrictions, will follow a statutory directive of its own state on choice of law.
(2) When there is no directive, the factors relevant to the choice of the applicable rule of law include
(a) the needs of the interstate and international systems,
(b) the relevant policies of the forum,

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882 F. Supp. 110, 1994 U.S. Dist. LEXIS 16944, 1994 WL 780910, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grossman-v-aristech-chemical-corporation-miwd-1994.