Morgan v. Biro Manufacturing Co.

474 N.E.2d 286, 15 Ohio St. 3d 339, 15 Ohio B. 463, 1984 Ohio LEXIS 1299
CourtOhio Supreme Court
DecidedDecember 31, 1984
DocketNo. 84-518
StatusPublished
Cited by198 cases

This text of 474 N.E.2d 286 (Morgan v. Biro Manufacturing Co.) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morgan v. Biro Manufacturing Co., 474 N.E.2d 286, 15 Ohio St. 3d 339, 15 Ohio B. 463, 1984 Ohio LEXIS 1299 (Ohio 1984).

Opinions

Per Curiam.

Through this appeal, the court is confronted with the standard choice-of-law dilemma. We must initially determine whether Kentucky or Ohio law should be applied to the facts as presented. Then we must proceed to the merits of appellant’s case under the appropriate state standards.

I

The principles of choice-of-law have been subject to much reevaluation in many jurisdictions due to the judiciary’s dissatisfaction with the absolute nature of the traditional rules. This flurry of activity has brought about inconsistent theories which oftentimes lead to unjust results. Many problems still plague this area, of the law and Ohio has not been immune from them.1

The national trend in choice-of-law litigation is to replace the traditional rules with a more flexible case-by-case approach. This approach combines some of the more well-reasoned traditional axioms with an interest analysis of the states involved in the litigation. The task is therefore delegated to the court to weigh each factor in light of the circumstances of the particular case.

In the area of tort law prior to 1971, it is well-established in this state that the substantive law of the place where the injury occurred was controlling under the rule of lex loci delicti. Freas v. Sullivan (1936), 130 Ohio St. 486 [5 O.O. 139]; Collins v. McClure (1944), 143 Ohio St. 569 [28 O.O. 482]; Ellis v. Garwood (1958), 168 Ohio St. 241 [6 O.O.2d 22]; Lyons v. Lyons (1965), 2 Ohio St. 2d 243 [31 O.O.2d 504]. The application of the rule was automatic without reference to the facts of the case. However, in Fox v. Morrison Motor Freight (1971), 25 Ohio St. 2d 193 [54 O.O.2d 301], this court made its first move to join the national trend.

In writing for a majority of the court in Fox, Justice Duncan stated [341]*341that the rule of lex loci delicti was no longer to be utilized to automatically determine tort cases involving choice-of-law issues. Justice Duncan further noted that a trial court must weigh the substantial governmental interests of the states concerned in order to reach a fair and equitable result. The majority opinion made no indication, however, as to whether the traditional rule was a factor to be considered by the trial court.

The continued viability of lex loci delicti was expressed by Justice Leach in his concurring opinion in Fox which was joined by three of his brethren. It was the view of Justice Leach that the majority opinion was creating an exception to the traditional rule, not the abolishment thereof.

The confusion which resulted from the Fox opinions was partially alleviated in Schiltz v. Meyer (1972), 29 Ohio St. 2d 169 [58 O.O.2d 391]. A unanimous court reaffirmed the view that lex loci delicti would not be automatically dispositive of tort actions involving choice-of-law queries. Although Ohio law was applied, it was held that courts should no longer look solely to the traditional doctrine in ascertaining which state’s law should prevail. Nonetheless, the court did consider, in part, the policy of lex loci delicti in making its determination.

Finally, our most recent case dealing with the issue is that of Moats v. Metropolitan Bank of Lima (1974), 40 Ohio St. 2d 47 [69 O.O.2d 323]. The suit therein arose when two Ohio residents were killed in an airplane crash in Pennsylvania. The plane was owned by an Ohio corporation and hangared in Ohio. In addition, the representatives of each estate resided in Ohio.

Again, a unanimous court cited Fox, supra, and Schiltz, supra, in support of its ruling not to automatically apply lex loci delicti. The court then proceeded to analyze each state’s interests in the case. It was found that the state of Pennsylvania had little interest because all of the contacts in the litigation were in Ohio with the exception of the crash site. By employing an interest analysis approach, the court applied Ohio law in holding that Pennsylvania’s interests could not outweigh Ohio’s concerns.

Based on this line of authority, it is apparent that the traditional rule of lex loci delicti is still viable in Ohio, but is no longer used to automatically determine the prevailing state law. Other interests of the states involved within the controversy must be thoroughly analyzed. Thus, the query becomes what specific factors should our courts consider in making an equitable choice-of-law determination.

A review of relevant authorities indicates three modern methodologies to the perplexity surrounding choice-of-law: the Restatement of the Law of Conflicts approach, Currie’s interest analysis approach,2 and Leflar’s choice-influencing approach.3 We hereby adopt the theory stated in the [342]*342Restatement of the Law of Conflicts, as it is more reflective of our past decisions and also provides sufficient guidelines for future litigation.

When confronted with a choice-of-law issue in a tort action under the Restatement of the Law of Conflicts view, analysis must begin with Section 146.4 Pursuant to this section, a presumption is created that the law of the place of the injury controls unless another jurisdiction has a more significant relationship to the lawsuit. To determine the state with the most significant relationship, a court must then proceed to consider the general principles set forth in Section 145.5 The factors within this section are: (1) the place of the injury; (2) the place where the conduct causing the injury occurred; (3) the domicile, residence, nationality, place of incorporation, and place of business of the parties; (4) the place where the relationship between the parties, if any, is located; and (5) any factors under Section 66 which the court may deem relevant to the litigation. All of these factors are to be evaluated according to their relative importance to the case.

Turning to the facts of this case, it is clear that the state of Kentucky [343]*343has the most significant relationship to the parties and events herein. The courts below found that appellant’s injury took place in Kentucky and that he was a resident thereof at the time of his accident. Further, appellant Morgan was employed at a supermarket in Kentucky and received workers’ compensation benefits under Kentucky law. Finally, the inspection of the meat grinder’s condition was the responsibility and within the exclusive interest of the state of Kentucky.

The state of Ohio has only two contacts of any significance to this litigation. First, appellee is incorporated under the laws of this state. Second, the product was manufactured in Ohio. It is without question that our state has an important policy objective in deterring the manufacture and sale of defective products. See Temple v. Wean United, Inc. (1977), 50 Ohio St. 2d 317, 320-321 [4 O.O.3d 466]. However, the mere fact that twenty-five years ago appellee manufactured a commercial meat grinder in Ohio and subsequently sold it to a Tennessee corporation with a protective guard in place which, in turn, was removed and a Kentucky resident was injured thereby, does not justify an application of Ohio law. Consequently, we hold that the trial court properly applied Kentucky law in the case

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Bluebook (online)
474 N.E.2d 286, 15 Ohio St. 3d 339, 15 Ohio B. 463, 1984 Ohio LEXIS 1299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-v-biro-manufacturing-co-ohio-1984.