In Re" Agent Orange" Product Liability Litigation

580 F. Supp. 690, 1984 U.S. Dist. LEXIS 19317
District Court, E.D. New York·Decided February 21, 1984·No. MDL 381·Published·Cited by 42 cases

Opinion

TABLE OF CONTENTS

I. Introduction..........................693

A. Federal law — for jurisdictional purposes; for substantive purposes; for eviden-tiary and procedural purposes; and as a model for the states to incorporate in their own law..................... 694

B. State law......................... 695

C. National consensus law.............. 696

II. Claims of Defendants as Misunderstanding of Posture of Case....................... 697

III. Conflicts of Law Rules.................. 699

A. Restatement (Second) .............. 700

1. Product liability law............. 701

2. Government contract defense ..... 701

3. Punitive damages............... 705

B. Governmental Interest..............706
C. Leflar — Better Law................706 III. Conflicts of Law Rules
D. Traditional.......................707
E. Forum...........................708
F. von Mehren — Reconciling Conflicts .... 709
G. National Consensus Restated.........711
IV. Statutes of Limitations.................713
V. Conclusion...........................713

PRETRIAL ORDER NO. 92

PRELIMINARY MEMORANDUM ON CONFLICTS OF LAW

WEINSTEIN, Chief Judge:

A considerable number of Vietnam war veterans resident in all or almost all states, Puerto Rico and the District of Columbia and a number of foreign countries, and members of their families, claim to have suffered injury as a result of the veterans’ exposure to herbicides in Vietnam. Defendants produced those herbicides. Individual claims, originally filed in all parts of the .country, were transferred for pretrial purposes to this court. Subject to some powers to opt out, common issues presented by plaintiffs’ claims will now be tried together since a class has been certified pursuant to Rule 23. See In re “Agent Orange” Product Liability Litigation, P.T.O. 72, 100 F.R.D. 718 (E.D.N.Y.1983). Petition for writ of mandamus denied, 725 F.2d 858 (2d Cir.), cert. denied, sub nom., Diamond Shamrock Chemicals Co. v. Ryan, _ U.S. _, 104 S.Ct. 1417, 79 L.Ed.2d 743 (1984).

Plaintiffs have failed to state a cause of action under federal common law for jurisdictional purposes. In re “Agent Orange” Product Liability Litigation, 635 F.2d 987 (2d Cir.1980), cert. denied sub nom. Chapman v. Dow, 454 U.S. 1128, 102 S.Ct. 980, 71 L.Ed.2d 116 (1981). Accordingly, the litigation is grounded upon diversity jurisdiction raising the issue of what substantive law should apply.

As required by Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941), this court has examined the conflict of law rules of the states in which the transferor courts sit. Van Dusen v. Barrack, 376 U.S. 612, 84 S.Ct. 805, 11 L.Ed.2d 945 (1964). For the *693 reasons set forth below, it is concluded that under the special circumstances of this litigation, all the transferor states would look to the same substantive law for the rule of decision on the critical substantive issues.

I. Introduction

Plaintiffs originally sought to base jurisdiction on federal common law relying on federal question jurisdiction. 28 U.S.C. § 1381. This court sustained their contention. In re “Agent Orange” Product Liability Litigation, 506 F.Supp. 737 (E.D.N. Y.1979). The Second Circuit reversed, concluding, for the purpose of denying federal question jurisdiction, that “there is [no] identifiable federal policy at stake in this litigation that warrants the creation of federal common law rules.” 635 F.2d 987, 993, cert. denied sub nom. Chapman v. Dow, 454 U.S. 1128, 102 S.Ct. 980, 71 L.Ed.2d 116 (1981). The court held that if the action was to continue in the federal courts, jurisdiction must be based on diversity of citizenship. 28 U.S.C. § 1332.

In applying state law, following what is assumed to be the mandate of Klaxon, the choice of law methodology used by the states in which transferor courts sit has been examined to predict what law each state would apply.

We recognize that Klaxon has been widely criticized and that learned scholars have suggested on the basis of policy and possible constitutional grounds that a federal conflicts of law rule should be applied in diversity cases such as the one before us. See, e.g., R. Bridwell & R. Whitten, The Constitution and the Common Law 135 (1977); R.C. Cramton, D.P. Currie & H.H. Kay, Conflict of Laws, 927-932 (3d ed. 1981); Hart & Wechsler’s The Federal Courts and the Federal System, 713-717 (2d ed. by P.M. Bator, P.Y. Mishkin, D.L. Shapiro & H. Wechsler, 1973); W.L.M. Reese & M. Rosenberg, Conflict of Laws, 692, 694-695 (7th ed. 1978); E.F. Scoles & P. Hay, Conflict of Laws 112 (1982); C. Wright, Law of Federal Courts, 366-370 (4th ed. 1983); Hill, The Erie Doctrine and the Constitution, 53 Nw.U.L.Rev. 427, 444-45 (1958); Korn, The Choice of Law Revolution: A Critique, 83 Colum.L.Rev. 772, 971 (1983); Trautman, The Relation Between American Choice of Law and Federal Common Law, 41 Law and Contemp.Prob. 105, 120 (Spring 1977). The Supreme Court has, however, “made it clear that the Klaxon rule is not to yield to the more modern thinking of conflicts-of-laws scholars.” C. Wright, id. at 368. See, e.g., Day and Zimmerman, Inc. v. Challoner, 423 U.S. 3, 96 S.Ct. 167, 46 L.Ed.2d 3 (1975).

Much of the law of conflicts is in a state of flux, development and refinement. Any dogmatism as to the result were the issue to be certified to the highest court of each jurisdiction involved is unwarranted. See, e.g., the most current authoritative and comprehensive review of choice of law problems, Korn, The Choice-of-Law Revolution: A Critique, 83 Colum.L.Rev. 772, 956 (1983), and the shorter but trenchant Juenger, Conflict of Laws: A Critique of Interest Analysis, 32 Am.J. of Comp.L. 1 (1984). Nevertheless, given the special facts of this litigation, under any approach utilized today, so far as can reasonably be predicted, the result would be the same: each state would probably apply the same law, that is to say either federal or national common law.

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In Re" Agent Orange" Product Liability Litigation, 580 F. Supp. 690, 1984 U.S. Dist. LEXIS 19317 (E.D.N.Y. 1984).

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