Marchan v. John Miller Farms, Inc.

352 F. Supp. 3d 938
CourtUnited States District Court
DecidedDecember 11, 2018
DocketCIVIL ACTION NO. 3:16-00357-WGY
StatusPublished
Cited by4 cases

This text of 352 F. Supp. 3d 938 (Marchan v. John Miller Farms, Inc.) is published on Counsel Stack Legal Research, covering United States District Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marchan v. John Miller Farms, Inc., 352 F. Supp. 3d 938 (usdistct 2018).

Opinion

YOUNG, DISTRICT JUDGE1

This is a serious and complex products liability action now nearing trial. The Plaintiffs (collectively "Marchan") have sued a variety of defendants. A rough schematic of the relevant corporate relationships between and among the manufacturer (on the right) and the retailer (on the left) follows:

*941Having heard a number of different motions for summary judgment, the Court denied them all on October 4, 2018 due to the existence of genuine issues of fact for the jury. This explanation of the Court's action suffices here notwithstanding the exhortation in Federal Rule of Civil Procedure 56(a) to provide a more detailed explication for even a denial of a motion for summary judgment. See United States v. Massachusetts, 781 F.Supp.2d 1, 19-20 (D. Mass. 2011) ; Federal Trade Comm'n v. D-Link Sys., Inc., No. 17-cv-00039-JD, 2018 WL 6040192, at *1, 2018 U.S. Dist. LEXIS 199023 at *1-3 (N.D. Cal. Nov. 5, 2018).

Two issues, however, warrant more extended analysis and the Court takes them up in turn.

A. Indemnity Claim of the Seller

Crary asserted in its crossclaim that, contractually and under the common law, TerraMarc and KRG were required to indemnify it. Crary Answer Crossclaims 8-9, ¶¶ 25-36, ECF No. 72. KRG and TerraMarc moved for summary judgment on Crary's crossclaims. KRG Mot. Summ. J. Crossclaims 1, ECF No. 94; TerraMarc Mot. Summ. J. Crossclaims 1, ECF No. 96. Crary settled with the Plaintiffs prior to the June 1, 2018 motion session. During the motion session, Crary asserted that despite its recent settlement with the Plaintiffs, it was remaining a party in the case because it was entitled to statutory indemnification from the manufacturer, *942Harriston-Mayo or KRG. Crary argued that a seller is entitled to indemnity even if the manufacturer is found not liable.

According to section 28-01.3-05 of the North Dakota Century Code, a seller has a right to indemnity against a manufacturer:

If a product liability action is commenced against a seller, and it is alleged that a product was defectively designed, contained defectively manufactured parts, had insufficient safety guards, or had inaccurate or insufficient warning; that such condition existed when the product left the control of the manufacturer; that the seller has not substantially altered the product; and that the defective condition or lack of safety guards or adequate warnings caused the injury or damage complained of; the manufacturer from whom the product was acquired by the seller must be required to assume the cost of defense of the action, and any liability that may be imposed on the seller. The obligation to assume the seller's cost of defense should also extend to an action in which the manufacturer and seller are ultimately found not liable.

N.D. Cent. Code § 28-01.3-05 (emphasis supplied). Crary argues that it maintains its indemnity right even if the manufacturer is found not liable. Crary Mem. Opp'n KRG and Terramarc Mot. Summ. J. 5-8 ("Crary's Opp'n"), ECF No. 113. It bases its argument on the provision's last sentence which says: "[t]he obligation to assume the seller's cost of defense should also extend to an action in which the manufacturer and seller are ultimately found not liable." N.D. Cent. Code § 28-01.3-05 ; Crary's Opp'n 7.

The North Dakota Supreme Court previously had taken a different approach to this issue. See Kaylor v. Iseman Mobile Homes, 369 N.W.2d 101, 104 (N.D. 1985) ; Winkler v. Gilmore & Tatge Mfg. Co., 334 N.W.2d 837, 841 (N.D. 1983). In Winkler, the North Dakota Supreme Court interpreted section 28-01.1-07, the former indemnity provision, which was the same as the present statute but did not include the last sentence. 334 N.W.2d at 838-42. There, the court determined that "the intent of § 28-01.1-07, NDCC [was] to allow indemnity in those cases where only the manufacturer is found liable and the seller is absolved." Id. at 841. In Kaylor, the North Dakota Supreme Court reaffirmed its holding in Winkler, emphasizing that it would be "absurd" for the North Dakota Century Code to allow indemnity in cases where the manufacturer was found not liable. 369 N.W.2d at 104 (quoting Winkler, 334 N.W.2d at 841 ).

Today's section 28-01.3-05 provides for a result different than that in Winkler and Kaylor. When "the provisions of a statute differ from previous case law, the statute prevails." Bornsen v. Pragotrade, LLC, 804 N.W.2d 55, 61 (N.D. 2011) (quoting Vandall v. Trinity Hosps., 676 N.W.2d 88, 93 (N.D. 2004) ). Thus, section 28-01.3-05 abrogated section 28-01.1-07 and the case law interpreting it.

Since there appear to be no cases analyzing section 28-01.3-05, the proper interpretation of the statute is a matter of first impression for the Court.2 The legislature *943made clear that there was an "urgent need for additional legislation to establish clear and predictable rules with respect to certain matters relating to products liability actions." N.D. Cent.

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Cite This Page — Counsel Stack

Bluebook (online)
352 F. Supp. 3d 938, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marchan-v-john-miller-farms-inc-usdistct-2018.