Ortiz v. Gaston County Dyeing MacHine Co.

277 F.3d 594, 2002 U.S. App. LEXIS 1109, 2002 WL 88875
CourtCourt of Appeals for the First Circuit
DecidedJanuary 28, 2002
Docket01-1264
StatusPublished
Cited by27 cases

This text of 277 F.3d 594 (Ortiz v. Gaston County Dyeing MacHine Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ortiz v. Gaston County Dyeing MacHine Co., 277 F.3d 594, 2002 U.S. App. LEXIS 1109, 2002 WL 88875 (1st Cir. 2002).

Opinion

LIPEZ, Circuit Judge.

Jorge Ortiz appeals from the judgment of the district court in favor of defendant, Gaston County Dyeing Machine Co. (“Ga-ston County”). The court concluded that Ortiz’s products liability claims were barred by Pennsylvania’s two-year statute of limitations, rejecting his contention that Massachusetts law applied instead. After the district court entered summary judgment for Gaston County, Ortiz moved to vacate the judgment under Fed.R.Civ.P. 59(e), and to transfer the case to the district of North Carolina under 28 U.S.C. § 1404(a). In support of those motions, Ortiz argued for the first time that his claims were governed by North Carolina law. The district court denied both motions, and Ortiz now appeals, challenging the court’s grant of summary judgment and its subsequent denial of his motion for a transfer of venue. We affirm.

I.

This case arises out of an injury Ortiz suffered while working at Northeast Bleach & Dye in Schuylkill Haven, Pennsylvania. Ortiz alleges that, on or about July 10, 1997, his left hand was caught in the “slack loop washer” machine he was operating. Since the machine lacked an emergency “trip switch,” Ortiz was unable to shut it off when his gloved hand first became caught in the gears. As a result, he suffered extensive injury to his hand and forearm.

Roughly two and one half years after his injury, Ortiz set about obtaining recompense from the company or companies responsible for the machine’s design and manufacture, on the theory that the absence of a trip switch was a design defect. The machine’s blueprints suggested three possible defendants: the Rodney Hunt Company (now known as “Rohunta”), a Massachusetts corporation; American Argo Corp., a Maryland corporation; and Gaston County, a North Carolina corporation. On December 2,1999, Ortiz filed suit in the District of Maryland, naming all three companies as defendants. He voluntarily dismissed that complaint, however, after it became clear that the only defendant with any connection to Maryland— American Argo — was not involved in the manufacture or design of the machine.

On February 16, 2000 (approximately two years and seven months after his injury), Ortiz filed a second complaint against Rohunta and Gaston County, this time in the District of Massachusetts. Massachusetts, like Maryland, has a three-year statute of limitations for products liability claims. Pennsylvania, on the other hand, permits such claims only if brought within two years of the date of the injury. Not surprisingly, then, the question quickly arose as to which state’s law governed Ortiz’s claim.

Arguing that Pennsylvania law applied, both defendants moved for summary judgment on the ground that Ortiz’s claim was barred by that state’s two-year statute of limitations. They emphasized that the injury occurred in Pennsylvania; Ortiz lived and worked there at the time of the injury; and the machine was sold, serviced, and maintained in Pennsylvania. Thus, the defendants argued, Pennsylvania had a greater interest in Ortiz’s claim than did Massachusetts.

Ortiz disagreed. The crucial question for choice of law purposes, he argued, was not where the injury occurred, but where the defect occurred; that is, where the machine was designed and manufactured. Claiming that the machine was designed and manufactured by Rohunta, a Massa *596 chusetts company, Ortiz argued that Massachusetts law applied.

In fact, the machine was manufactured and designed by Gaston County at its principal place of business in North Carolina. On September 22, 2000 — several days before the scheduled hearing on the defendants’ motions for summary judgment — Gaston County filed an affidavit to that effect, making clear that Rohunta had played no role in designing, manufacturing, or selling the machine. At the hearing on September 28, 2000, Rohunta invoked that affidavit as an independent basis for dismissing Ortiz’s claims against it. The court gave Rohunta until October 19, 2000, to submit its own affidavit explaining its role, if any, in designing and manufacturing the machine, and gave Ortiz until November 2, 2000, to respond. Rohunta filed the requested affidavit, together with a supplemental memorandum in support of its motion for summary judgment emphasizing that there was no basis for application of Massachusetts law if, as it now appeared, the machine had not been manufactured there. Despite the opportunity to do so, Ortiz did not respond to Gaston County’s affidavit, or to Rohunta’s new arguments.

On November 29, 2000, the district court granted defendants’ motions for summary judgment and entered judgment in their favor. Massachusetts, the court explained, will apply another state’s statute of limitations where (a) allowing the claim to go forward under the longer Massachusetts statute of limitations “would serve no substantial interest of the forum,” and (b) “the claim would be barred under the statute of limitations of a state having a more significant relationship to the parties and the occurrence.” New England Tel. & Tel. Co. v. Gourdeau Constr. Co., 419 Mass. 658, 647 N.E.2d 42, 45 (1995) (citing Restatement (Second) of Conflict of Laws, § 142). The court concluded that both conditions were satisfied here. As between Massachusetts and Pennsylvania, the latter clearly had the more significant relationship to the parties and the occurrence. The undisputed facts showed that the machine was sold and maintained in Pennsylvania, and allegedly caused injury to Ortiz, a Pennsylvania resident, while he was working at a Pennsylvania. business. By contrast, “no significant contacts with Massachusetts existed that would justify applying Massachusetts’ law to defendant[s].” Thus, Pennsylvania’s statute of limitations applied, and Ortiz’s claim was time-barred.

Ortiz did not challenge the district court’s decision to apply the Pennsylvania statute of limitations in lieu of Massachusetts’s. Instead, he attempted to salvage his claims against Gaston County through application of yet another three-year statute of limitations — North Carolina’s. He pursued this initiative in two steps. First, on December 5, 2000, he filed a motion for transfer of venue under 28 U.S.C. § 1404(a), seeking transfer to the District of North Carolina, where Gaston County has its principal place of business. In a supporting memorandum of law, Ortiz argued that Gaston County had “withheld” until the last possible moment the crucial fact that it had designed and manufactured the machine in North Carolina. As a result of such trickery, Ortiz explained, he had filed suit in Massachusetts instead of North Carolina. Accordingly, transfer was proper so that he would not be “punished” for Gaston County’s misbehavior.

Recognizing that there was nothing left of the case to transfer in its present posture, Ortiz also filed a motion under Rule 59(e) of the Federal Rules of Civil Procedure.

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Cite This Page — Counsel Stack

Bluebook (online)
277 F.3d 594, 2002 U.S. App. LEXIS 1109, 2002 WL 88875, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ortiz-v-gaston-county-dyeing-machine-co-ca1-2002.