Holdsworth v. Chesapeake & Ohio Railway Co.

370 F. Supp. 353, 1974 U.S. Dist. LEXIS 12316
CourtDistrict Court, N.D. Indiana
DecidedFebruary 8, 1974
DocketNo. 73 H 262
StatusPublished

This text of 370 F. Supp. 353 (Holdsworth v. Chesapeake & Ohio Railway Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holdsworth v. Chesapeake & Ohio Railway Co., 370 F. Supp. 353, 1974 U.S. Dist. LEXIS 12316 (N.D. Ind. 1974).

Opinion

MEMORANDUM OPINION

ALLEN SHARP, District Judge.

This is an action for personal injuries damages based upon alleged diversity of citizenship and originally filed on February 22, 1973. The plaintiff alleges that she was injured in an automobile collision which occurred in Hammond, Indiana on February 24, 1971. As to the defendant, Jack Pratico, the plaintiff asserts a claim based on the Illinois Dram Shop Act which is Section 135, chapter 43 of the Illinois Revised Statutes, Ill.Rev.Stat.1969, c. 43, § 135 which is attached as an Appendix hereto.

The complaint asserts as to the defendant, Jack Pratico, that his agents or servants sold intoxicating liquor to one Gary Dennis Martin which was consumed by said Martin and while intoxicated Martin operated his automobile in a careless and negligent manner, the same being one of the contributing causes to the accident in which the plaintiff sustained injuries in Hammond, Indiana on February 24, 1971.

The defendant, Jack Pratico, has filed his motion for judgment on December 14, 1973. The court will treat the same as a motion to dismiss addressed to the [354]*354face of the amended complaint. Counsel for the defendant Pratico attached to said motion a short memorandum citing only Lowrey v. Malkowski, 20 Ill.2d 280, 173 N.E.2d 147, cert. den., 365 U.S. 879, 81 S.Ct. 1029, 6 L.Ed.2d 191 (1960). Said brief is wholly inadequate and fails to address itself to the issues necessary to resolve the legal question raised by the motion of the defendant Pratico. It has therefore been the obligation of the court to pursue independent research on this subject.

It is undisputed that the Illinois Dram Shop Act, above cited, provides that “every action hereunder shall be barred unless commenced within one year next after the cause of action accrued.” Ind. Ann.Stat., Section 2-602, IC 1971, 34-1-2-2, provides for a two year statute of limitations for injuries to the person.

In Hobbs v. Firestone Tire & Rubber Co., 195 F.Supp. 56 (D.C.N.D.Ind.1961) Judge Grant stated at page 57:

“Normally, the above statute of limitations period of two years would be applicable to actions filed both in the Courts of Indiana as well as the Federal District Courts sitting in Indiana. However, Indiana, like most other states, has what is known as a ‘borrowing statute’ which imposes upon the trial court the duty of applying the statute of limitations of a sister state under certain circumstances. Unlike the borrowing statute of many of its sister states which refer to and make applicable the statute of limitations of the state wherein the injury occurred, the Indiana borrowing statute directs the trial court, in cases where the defendant is a non-resident of Indiana, to apply the statute of limitations of the state where the defendant resides. The Indiana borrowing statute as embodied in Burns’ Ann.Stat. § 2-606 (1946 Replacement —1960 Cum.Pocket Supp.) provides as follows:
* * when a cause has been fully barred by the laws of the place where the defendant resided, such bar shall be the same defense here as though it had arisen in this state: Provided, That the provisions of this section shall be construed to apply only to causes of action arising without this state.’
It is undisputed that the defendant, Firestone Tire & Rubber Co., is a resident of the State of Ohio insofar as the term ‘resident’ is employed by the statute. It follows that by virtue of section 2-606, this Court is referred to the laws of Ohio to determine whether the instant actions have been barred by the applicable statute of limitations.”

The present language of Section 2-606, IC 1971, 34-1-2-6, relevant here is as follows:

“(b) When a cause of action has arisen without this state against a nonresident defendant, and the defendant does not maintain any agent in the state of Indiana for service of process or other person who, under the laws of this state, could be served with process as agent for the defendant and such cause has been fully barred by the laws both of the place where the defendant resides and of the place where the cause of action arose, such bar shall be a defense here.”

Applying the quoted provision of § 2-606 there is no doubt that the cause of action of this plaintiff as to the defendant, Jack Pratico, is barred by the laws of the State of Illinois where the defendant admittedly resides. The question is whether or not it is barred by the laws of the place where the cause of action arose. In order to determine where the cause of action arose it is necessary to consider the salient elements of such a claim or cause of action. The salient elements in this statutory cause of action are injuries sustained by an intoxicated person which gives rise to a claim against the person who sells or gives the [355]*355alcoholic liquor and thereby causes the intoxication. Therefore, based upon this case at the pleading stage, this court cannot say as a matter of law that the cause of action or claim of the plaintiff against the defendant Pratico arose solely in the State of Illinois. It would appear that some of the elements of said claim or cause of action occurred in Indiana, namely, the alleged negligent conduct of an intoxicated person which resulted in the plaintiff’s injury. Therefore, it is impossible for this court to determine on the basis of the pleadings here that it is obligatory under Section 2-606 to borrow the Illinois one year limitations provision contained in the Dram Shop Act.

There would also appear to be an alternate bases for the denial of this motion. The Supreme Court of the United States in Guaranty Trust Co. of New York v. York, 326 U.S. 99, 65 S.Ct. 1464, 89 L.Ed. 2079 (1945), held that a state statute of limitations must be applied by a federal court in a diversity case even though the statute of limitations may be regarded as procedural for some other purposes in order to insure that “the outcome of the litigation in the federal court should be substantially the same, so far as legal rules determining the outcome of litigation, as it would be if tried in a State court”. 326 U.S. at page 109, 65 S. Ct. at page 1470. See also, Wright, Federal Courts, 2d Ed., Section 59, pages 241-246. It is correct that the Appellate Court of Indiana has labeled the Indiana statute of limitations as procedural. See Horvath v. Davidson, 148 Ind.App. 203, 264 N.E.2d 328 (1970). It will be readily apparent that the defendant in Hovarth was a resident of Indiana and Section 2-606 did not apply in that case. However, Hovarth is relevant in this ease when considered in the light of the mandate of the Supreme Court of the United States in Guaranty Trust.

Therefore, on either basis the motion of the defendant Pratico should be and hereby is denied.

APPENDIX

§ 135. Actions for damages caused by intoxication — Lessor’s liability — Forfeiture of lease — Maximum recovery — Limitations

Every person who is injured in person or property by any intoxicated person, has a right of action in his own name, severally or jointly, against any person who by selling or giving alcoholic liquor, causes the intoxication of such person.

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Related

Guaranty Trust Co. v. York
326 U.S. 99 (Supreme Court, 1945)
Guaranty Trust Co. v. York
326 U.S. 99 (Supreme Court, 1945)
Hobbs v. Firestone Tire & Rubber Co.
195 F. Supp. 56 (N.D. Indiana, 1961)
Lowrey v. Malkowski
170 N.E.2d 147 (Illinois Supreme Court, 1960)
Horvath v. Davidson
264 N.E.2d 328 (Indiana Court of Appeals, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
370 F. Supp. 353, 1974 U.S. Dist. LEXIS 12316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holdsworth-v-chesapeake-ohio-railway-co-innd-1974.