Michael J. Muldoon v. Tropitone Furniture Company Marriott Corporation

1 F.3d 964, 93 Daily Journal DAR 10949, 93 Cal. Daily Op. Serv. 6369, 1993 U.S. App. LEXIS 21574, 1993 WL 321932
CourtCourt of Appeals for the Ninth Circuit
DecidedAugust 26, 1993
Docket92-55295
StatusPublished
Cited by59 cases

This text of 1 F.3d 964 (Michael J. Muldoon v. Tropitone Furniture Company Marriott Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michael J. Muldoon v. Tropitone Furniture Company Marriott Corporation, 1 F.3d 964, 93 Daily Journal DAR 10949, 93 Cal. Daily Op. Serv. 6369, 1993 U.S. App. LEXIS 21574, 1993 WL 321932 (9th Cir. 1993).

Opinion

FARRIS, Circuit Judge:

Michael J. Muldoon appeals the dismissal of his personal injury action against Tropi-tone Furniture Company and The Marriott Corporation. The district court dismissed the action as time barred. We vacate and remand.

I.

Muldoon allegedly suffered an injury on September 12,1989, during a stay at the San Diego Marriott Hotel, when he adjusted a lounge chair manufactured by Tropitone Furniture Company. On October 10, 1990, Mul-doon filed a personal injury action against Marriott and Tropitone in California state court. That action was dismissed without prejudice for failure to comply with California’s one-year statute of limitations, Cal.Civ. Proe.Code § 340(3) (West 1982).

On September 12, 1991, Muldoon commenced this diversity action against Marriott and Tropitone in the United States District Court for the Northern District of Illinois. On its own motion, the district court in Illinois transferred the action to the United States District Court for the Southern District of California pursuant to 28 U.S.C. § 1404(a). The district court in California then dismissed the action as time barred under the California statute of limitations.

II.

Section 1404(a) of Title 28 states: “For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought.” 28 U.S.C. § 1404(a) (1988). In Van Dusen v. Barrack, 376 U.S. 612, 84 S.Ct. 805, 11 L.Ed.2d 945 (1964), the Supreme Court held that where such a transfer is granted at the behest of a defendant, the transferee court must follow the choice-of-law rules of the transferor court. In Ferens v. John Deere Co., 494 U.S. 516, 110 S.Ct. 1274, 108 L.Ed,2d 443 (1990), the Court extended the Van Dusen rule to transfers initi *966 ated by plaintiffs. The language and reasoning in Ferens leave no doubt that the rule equally is applicable where a district court transfers an action sua sponte. The district court in California therefore was required to apply the choice-of-law rules that the district court in Illinois would have applied.

III.

As a federal court exercising its diversity jurisdiction, the Illinois district court would have applied the substantive law of Illinois, including Illinois’ choice-of-law rules and its statutes of limitation. Anabaldi v. Sunbeam Corp., 651 F.Supp. 1343, 1344 (N.D.Ill.1987) (citing Goldberg v. Medtronic, Inc., 686 F.2d 1219, 1225 (7th Cir.1982) and Guaranty Trust Co. v. York, 326 U.S. 99, 110-11, 65 S.Ct. 1464, 1470-71, 89 L.Ed. 2079 (1945)); Kalmich v. Bruno, 553 F.2d 549, 552 (7th Cir.) (“State law barring an action because of a statute of limitations is sufficiently “substantive,” in the Erie [Erie R.R. Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938) ] sense, that a federal court in that state exercising diversity jurisdiction must respect it.”), cert. denied, 434 U.S. 940, 98 S.Ct. 432, 54 L.Ed.2d 300 (1977).

IV.

Illinois has adopted a “most significant relationship” test for determining the substantive law applicable in tort cases. Ingersoll v. Klein, 46 Ill.2d 42, 262 N.E.2d 593 (1970); Anabaldi, 651 F.Supp. at 1344. The district court in California purportedly applied this test in selecting the one-year California statute of limitations over Illinois’ two-year statute. The court erred in so doing.

Although Illinois uses the Ingersoll approach in determining the applicable tort law, and although statutes of limitation are “substantive” for Erie purposes, see Kalmich, 553 F.2d at 552, Illinois considers statutes of limitation “procedural” for choice-of-law purposes. See Cox v. Kaufman, 212 Ill.App.3d 1056, 156 Ill.Dec. 1031, 1035, 571 N.E.2d 1011,1015 (“Statutes of limitation are procedural, affecting only the remedy available and not the substantive rights of the parties, and are governed by the law of the forum.”), appeal denied, 141 Ill.2d 537, 162 Ill.Dec. 484, 580 N.E.2d 110 (1991); Kalmich, 553 F.2d at 553 (same); Anabaldi, 651 F.Supp. at 1345 (“As a general rule Illinois courts apply Illinois statutes of limitation to common law causes of action arising in other states, even when those causes of action are governed by foreign law.”).

Because an Illinois state court would have applied the Illinois statute of limitations, a federal district court in Illinois would have been bound to do likewise. Kalmich, 553 F.2d at 552; See Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941). As transferee court, the district court in California, in turn, should have applied the statute that the Illinois district court, the transferor court, would have been required to apply. See Ferens, 494 U.S. at 519, 110 S.Ct. at 1277. Thus, Illinois’ two-year statute of limitations is applicable to this action, subject to the caveat discussed in part VI, infra.

V.

Both Marriott and Tropitone argue that application of the longer limitations period would be unfair, because it would reward Muldoon for forum shopping. A similar argument expressly was rejected in Ferens: “Our rule may seem too generous because it allows the Ferenses to have both their choice of law and their choice of forum, or even to reward the Ferenses for conduct that seems manipulative. We nonetheless see no alternative rule that would produce a more acceptable result.” 494 U.S. at 531, 110 S.Ct. at 1284. Muldoon’s “forum shopping” was less “manipulative” than that condoned by the Court in Ferens: Muldoon undoubtedly filed in Illinois so as to obtain the benefit of Illinois’ limitations period, but he did not seek to have the action transferred to California. The Supreme Court rejected the “fairness” arguments in Ferens. We are compelled to follow.

VI.

The foregoing assumes that this action properly was transferred from Illinois to California under 28 U.S.C. § 1404

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1 F.3d 964, 93 Daily Journal DAR 10949, 93 Cal. Daily Op. Serv. 6369, 1993 U.S. App. LEXIS 21574, 1993 WL 321932, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michael-j-muldoon-v-tropitone-furniture-company-marriott-corporation-ca9-1993.