Haskell Gahimer, Helen C. Spradling, Administratrix of the Estate of Birney D. Spradling, Deceased v. Virginia-Carolina Chemical Corporation

241 F.2d 836
CourtCourt of Appeals for the Seventh Circuit
DecidedMarch 29, 1957
Docket18-3342
StatusPublished
Cited by13 cases

This text of 241 F.2d 836 (Haskell Gahimer, Helen C. Spradling, Administratrix of the Estate of Birney D. Spradling, Deceased v. Virginia-Carolina Chemical Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haskell Gahimer, Helen C. Spradling, Administratrix of the Estate of Birney D. Spradling, Deceased v. Virginia-Carolina Chemical Corporation, 241 F.2d 836 (7th Cir. 1957).

Opinion

MAJOR, Circuit Judge.

Plaintiff Haskell Gahimer operated a farm owned by Birney D. Spradling in Rush County, Indiana. Defendant, Virginia-Carolina Chemical Corporation, was engaged in the manufacture of fertilizer, with numerous plants, one of which was located at Cincinnati, Ohio. Lowell Innis, d/b/a Innis Farm Supply Company, operated a farm supply business at Milroy, Indiana, about three miles from the Spradling farm and, among other things, handled and sold fertilizer manufactured by defendant. On May 25,1954, Gahimer and Spradling commenced an action in the Superior Court of Marion County, Indiana, for the recovery of damages to plaintiffs’ corn occasioned by use of the alleged defective fertilizer manufactured by defendant and sold to Gahimer by Innis. During the course of the proceeding Birney D. Spradling died and Helen C. Spradling, Administratrix of his estate, was substituted as a party-plaintiff.

The complaint contained five counts, the first of which charged negligence by defendant in the manufacture of fertilizer, the use of which resulted in injury to plaintiffs’ corn. The other four counts alleged breaches of implied warranty of fitness of fertilizer and of contract, and consequent damages to plaintiffs as a result of purchase and use of the fertilizer. At the conclusion of plaintiffs’ testimony, the court, on motion of defendant, directed a verdict in its favor as to count 1. A similar motion was denied as to counts 2, 3, 4 and 5, and on those counts the jury returned a verdict in favor of defendant. Judgment was entered accordingly, from which plaintiffs appeal.

Two primary issues are urged as grounds for reversal, (1) that the court erred as a matter of law in directing a verdict in favor of defendant on the first count, and (2) that the verdict on counts 2, 3, 4 and 5 was erroneous for the reason that plaintiffs under the undisputed evidence were entitled as a matter of law to a verdict in their favor. Other issues are raised which may or may not become important, depending in pai't upon our disposition of the two primary issues. Such issues are: (a) the court erred in its rejection of certain testimony offered by plaintiffs on the issue of damages; (b) the court erred in the admission of evidence offered by defendant even though subsequently stricken with instructions to the jury to disregard it, and (c) the court erred in the giving of certain instructions relating both to the issues of liability and damages.

We shall first consider the action of the court in directing a verdict as to count 1. Defendant, in support of the court’s action as to this count, contends (1) that the cause of action stated therein was barred by the applicable limitation provision of the Indiana Statute, and (2) that there was no liability by defendant for negligence because there was no privity of contract between defendant and plaintiffs. This latter contention rests on the premise that the fertilizer was purchased by plaintiffs from Innis, an independent contractor, and that there were no dealings between plaintiffs and defendant.

Although the record is not too certain, it appears that the court directed a verdict on the ground that the cause of action was barred by the statute of limitation. We shall, therefore, first consider this issue. The Indiana statute provides that an action “for injuries to personal property” shall be commenced within two years from the time “the cause of action has accrued.” Indiana Acts 1951, Ch. 301, Sec. 2, subd. 1, p. 999.

A statement of the undisputed facts material to the limitation issue follows. *839 The action was commenced by the filing of a complaint May 25, 1954. The fertilizer was delivered to the Spradling farm by Innis on or about April 5, 1952. There it was stored until used by Ga-himer in connection with the planting of three fields of corn of 20 acres each, referred to as fields 1, 2 and 3. Field 1 was planted May 15, field 2, May 20, and field 3, May 24, all in 1952. Gahimer observed, prior to May 25, that the com in field 1 was coming up, but not “naturally and normally.” The corn in fields 2 and 3 did not come up until after May 25. There is no proof that Gahimer had knowledge or any reason to think that the corn in any of the fields had been damaged by use of defendant’s fertilizer until several weeks subsequent to May 25. When the damage was discovered by Gahimer, it was continuing and progressive in its nature.

Defendant’s theory, evidently embraced by the trial court, is that the two-year limitation period commenced to run April 5, 1952, at the time the fertilizer was delivered to the farm. If this theory is sound, it is obvious that the cause of action filed May 25, 1954 was barred. On the other hand, plaintiffs’ theory is that the limitation period commenced to run only when a cause of action accrued, which was not prior to the discovery of the injurious effect resulting from use of the fertilizer.

Both sides cite Indiana cases in support of their respective theories. Defendant relies upon Fidelity & Casualty Company of New York v. Jasper Furniture Company, 186 Ind. 566, 117 N.E. 258; Craven v. Craven, 181 Ind. 553, 103 N.E. 333, 105 N.E. 41; Montgomery v. Crum, 199 Ind. 660, 161 N.E. 251, and a decision of this court, Rowe v. Gatke Corp., 126 F.2d 61. In Fidelity, a suit upon contract, the court stated, 186 Ind. at page 567, 117 N.E. at page 258:

“* * * that a failure to discover a cause of action does not, like its concealment, operate to suspend the statute of limitation. [Citing cases.] A cause of action accrues, so that limitations begin to run, at the moment its owner has a legal right to sue on it, except where extrinsic facts, postponing the operation of the statute, are interposed.”

In Craven, where the defendant claimed title to real estate by adverse possession, the court stated, 181 Ind. at page 559, 103 N.E. at page 335:

“The bare fact that he had no knowledge of his rights to the land would not prevent the statute running.”

In Crum (also cited and relied upon by plaintiffs), the action was for alienation of affections wherein the wrongful act continued over a period of years. The court pointed out, 199 Ind. at page 678, 161 N.E. at page 259, that the accrual of a cause of action “depends upon the uniting of at least two elements — injury and damages,” and on the following page stated:

“The two-year statute of limitations will not begin to run as a shield against the consequences of wrongful acts until the wrongdoer thereby accomplishes an injury to the person of another, for which the law allows indemnity in the form of damages (that is to say, damages susceptible of ascertainment), for not until then would the cause of action accrue to invoke the statute. [Citing cases.]”

Rowe involved an action for damages on account of occupational disease, and this court held that the statute of limitations did not commence to run until the date of the last exposure. That decision has no relevancy to the instant situation because of our reliance upon a special provision of the Indiana Statute which provided that an action “shall be commenced within two [2] years after the * * * last exposure to the hazards of the disease.” Burns’ Ann. St.Ind. § 40-2203.

Cases relied upon by plaintiffs on the limitation issue are Bockman v. Ritter, 21 Ind.App. 250, 52 N.E.

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Bluebook (online)
241 F.2d 836, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haskell-gahimer-helen-c-spradling-administratrix-of-the-estate-of-birney-ca7-1957.