Juzwin v. Asbestos Corp.

900 F.2d 686, 1990 WL 39477
CourtCourt of Appeals for the Third Circuit
DecidedApril 10, 1990
DocketNo. 89-5420
StatusPublished
Cited by26 cases

This text of 900 F.2d 686 (Juzwin v. Asbestos Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Juzwin v. Asbestos Corp., 900 F.2d 686, 1990 WL 39477 (3d Cir. 1990).

Opinion

[688]*688OPINION OF THE COURT

SEITZ, Circuit Judge.

Carey Canada, Inc., (defendant) appeals from an interlocutory order of the district court denying its motion for summary judgment based on the New Jersey statute of limitations. The district court concluded that NJ.Stat.Ann. § 2A:14-22 (West 1987) (the “tolling statute”) is constitutional. Therefore, defendant’s failure to designate a representative to accept service of process pursuant to that statute tolled the statute of limitations. The district court certified the order under 28 U.S.C. § 1292(b) (1982). Since that order involves a controlling question of law as to the constitutionality of the tolling statute, we granted permission to appeal.

I.

Stephen and Mary Juzwin (plaintiffs) brought suit in the Superior Court of New Jersey, alleging that Stephen’s asbestos-related ailments were caused by exposure to asbestos fibers supplied by defendant and others. Upon application of defendant Am-torg Trading Corporation, the action was removed to the United States District Court for the District of New Jersey.

Plaintiffs admit that this cause of action arose in 1982 when Stephen Juzwin was diagnosed as having asbestosis and concede that they did not institute legal proceedings within the New Jersey two-year statute of limitations period. Juzwin v. Amtorg Trading Corp., 705 F.Supp. 1053, 1055 (D.N.J.1989). Thus, plaintiffs’ action is barred unless, as the district court concluded, that statute of limitations was tolled pursuant to New Jersey’s tolling statute. Id. at 1059.

New Jersey’s tolling statute provides in pertinent part:

If any person against whom there is any of the causes of action specified in sections 2A:14-1 to 2A:14-5 and 2A: 14-8 ... is not a resident of this State when such cause of action accrues ... or if any corporation or corporate surety not organized under the laws of this State, against whom there is such a cause of action, is not represented in this State by any person or officer upon whom summons or other original process may be served, when such cause of action accrues ... the time or times during which such person or surety is not residing within this State or such corporation or corporate surety is not so represented within this State shall not be computed as part of the periods of time within which such action is required to be commenced by the section. The person entitled to any such action may commence the same after the accrual of the cause therefor, within the period of time limited therefor by said section, exclusive of such time or times of nonresidence or nonrepresentation.
A corporation shall be deemed represented for purposes of this section if the corporation has filed with the Secretary of State a notice designating a representative to accept service of process.

N.J.Stat.Ann. § 2A: 14-22 (West 1987).1

Defendant, a corporation formed under the laws of Canada, has no corporate offices in the state of New Jersey, has never been registered to do business there, and has not appointed an agent for service of process with the Secretary of State. Thus, it is not “represented” in New Jersey within the meaning of the tolling statute. It appears to concede, however, that it was properly served under New Jersey’s long-arm court rule, N.J.Ct.R. 4:4-4(c)(l).

Citing Bendix Autolite Corp. v. Midwesco Enters., Inc., 486 U.S. 888, 108 S.Ct. 2218, 100 L.Ed.2d 896 (1988), defendant moved for summary judgment on the ground that the tolling statute violates the [689]*689commerce clause. In Bendix, the Supreme Court invalidated an Ohio tolling statute which required a foreign corporation to subject itself to the general jurisdiction of the Ohio courts, “whether or not the transaction in question had any connection with Ohio,” in order to gain the protection of its statute of limitations. Bendix, 486 U.S. at 892, 108 S.Ct. at 2221.

The district court concluded that, unlike the Ohio statutory scheme, the New Jersey tolling statute does not compel the conclusion that designation of an agent for service of process subjects a foreign corporation to the general jurisdiction of the New Jersey courts. The court noted the Secretary of State’s practice of accepting designations of a representative for service of process only for causes of action having a nexus with New Jersey. Such a limited designation, the court held, imposed no unconstitutional burden on interstate commerce.

II.

As we read Bendix, the New Jersey tolling statute would be invalid if it were applied to all foreign corporations, regardless of their connection with New Jersey. However, we will assume without deciding that the New Jersey Supreme Court would interpret the statute to permit designation of an agent for service of process only for causes of action having a nexus with New Jersey. The issue then becomes whether the statute so interpreted still constitutes an impermissible burden on interstate commerce. Our standard of review is plenary.

It may be helpful at the outset if we review the three standards of review that are applied in performing a dormant commerce clause inquiry:

1) state actions that purposefully or arbitrarily discriminate against interstate commerce or undermine uniformity in areas of particular federal importance are given heightened scrutiny; 2) legislation in areas of peculiarly strong state interest is subject to very deferential review; and 3) the remaining cases are governed by a balancing rule, under which state law is invalid only if the incidental burden on interstate commerce is clearly excessive in relation to the putative local benefits.

Ford Motor Co. v. Insurance Comm’r of Pa., 874 F.2d 926, 941 (3d Cir.1989), cert. denied sub nom. United Services Auto. Ass’n v. Foster, — U.S. -, 110 S.Ct. 418, 107 L.Ed.2d 382 (1989) (citing Norfolk Southern Corp. v. Oberly, 822 F.2d 388, 398-99 (3d Cir.1987)).2

While heightened scrutiny is the standard of review for simple economic protectionism, “[this] category of protectionism includes those state measures that discriminate on their face against out-of-state interests or in favor of in-state interests.” Norfolk Southern Corp., 822 F.2d at 400 (citations omitted). Because the New Jersey tolling statute applies to out-of-state corporations but not to New Jersey corporations,3 it comes within the class of statutes that are subject to heightened scrutiny. See Old Coach Dev. Corp. v. Tanzman, 881 F.2d 1227, 1231 (3d Cir.1989) (citations omitted).

To pass the heightened scrutiny test, the state is required to “demonstrate both that the statute ‘serves a legitimate local purpose,’ and that this purpose could not be served as well by available nondiscriminatory means.” Id. (quoting Maine v. Taylor, 477 U.S. 131, 138, 106 S.Ct. 2440, 2447, 91 L.Ed.2d 110 (1986) (quoting Hughes v. Oklahoma, 441 U.S. 322, 336, 99 S.Ct. 1727, 1736, 60 L.Ed.2d 250 (1979)).

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Bluebook (online)
900 F.2d 686, 1990 WL 39477, Counsel Stack Legal Research, https://law.counselstack.com/opinion/juzwin-v-asbestos-corp-ca3-1990.