Pounders v. ENSERCH E & C, INC.

276 P.3d 502, 229 Ariz. 433, 632 Ariz. Adv. Rep. 26, 2012 WL 1319796, 2012 Ariz. App. LEXIS 53
CourtCourt of Appeals of Arizona
DecidedApril 17, 2012
Docket1 CA-CV 11-0282
StatusPublished
Cited by1 cases

This text of 276 P.3d 502 (Pounders v. ENSERCH E & C, INC.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pounders v. ENSERCH E & C, INC., 276 P.3d 502, 229 Ariz. 433, 632 Ariz. Adv. Rep. 26, 2012 WL 1319796, 2012 Ariz. App. LEXIS 53 (Ark. Ct. App. 2012).

Opinion

OPINION

TIMMER, Judge.

¶ 1 The appeal in this wrongful death case requires us to employ choice-of-law principles to determine whether the substantive law of Arizona or New Mexico applies. If we agree with the trial court that New Mexico law applies, we then must decide whether the court properly applied New Mexico’s statute of repose to find that suit is barred against Appellees. For the reasons that follow, we affirm.

BACKGROUND

¶ 2 From 1969 to 1974 and again from 1977 to 1983, Arizona Public Service (“APS”) employed Dudley W. Pounders to work as a welder at the Four Corners Power Plant (the “Plant”) located in New Mexico. Mr. Pound-ers performed repair and maintenance work that required him to disturb and remove asbestos contained within equipment and insulation. As a result, he inadvertently im haled asbestos fibers. Mr. Pounders lived in New Mexico while he worked at the Plant.

¶ 3 In May 2008, Mr. Pounders and his wife, Vicki, were living in Arizona when doctors diagnosed him with mesothelioma, a type of cancer purportedly caused by asbestos exposure. The Pounders initiated a personal injury lawsuit the following month in Arizona against several defendants, alleging defective design, construction, and use of asbestos in the Plant and a failure to warn of the dangers of asbestos. These defendants included appellees Enserch E & C, Inc. (“Enserch”), successor-in-interest to the architect and construction manager for three units at the Plant, BW/IP, Inc. (“BW”), parent company to the manufacturer, designer, and supplier of ten pumps used at the Plant, and Riley Power, Inc. (“Riley”), which designed and manufactured industrial boilers used at the Plant. After Mr. Pounders died in August, Mrs. Pounders amended the complaint to assert a claim for wrongful death.

¶ 4 During the course of litigation, the trial court granted Appellees’ motion to apply New Mexico law to substantive issues concerning Mrs. Pounders’ claims because Mr. Pounders’ injuries occurred in that state. *436 The court subsequently granted summary judgment for Appellees after applying New Mexico’s statute of repose, New Mexico Statutes Annotated § 37-1-27 (West 2012), 1 which bars all claims arising from improvements made to real property and asserted more than ten years after substantial completion of the improvements. This timely appeal followed.

DISCUSSION

¶ 5 Mrs. Pounders argues the trial court erred by entering summary judgment because (1) Arizona substantive law, which does not include a statute of repose for tort claims, 2 applies to her lawsuit, and (2) even assuming New Mexico law applies, the court misapplied New Mexico’s statute of repose.

¶ 6 The trial court properly granted summary judgment if “there is no genuine issue as to any material fact and [] the moving party is entitled to a judgment as a matter of law.” Ariz. R. Civ. P. 56(c)(1). In reviewing the court’s ruling, we determine de novo whether any disputed issues of material fact exist and whether the court properly applied the law. Best Choice Fund, LLC v. Low & Childers, P.C., 228 Ariz. 502, 506, ¶ 10, 269 P.3d 678, 682 (App.2012) (as amended). We view the facts and inferences arising from them in the light most favorable to Mrs. Pounders as the party against whom judgment was entered. Id. Finally, we review a choice-of-law issue de novo as a question of law. Baroldy v. Ortho Pharm. Corp., 157 Ariz. 574, 578, 760 P.2d 574, 578 (App.1988).

I. Choice of law

¶ 7 Although the law of the forum state governs procedural matters, substantive issues are resolved by “the law of the jurisdiction to which the court is referred by the choice-of-law rules of the forum.” Cardon v. Cotton Lane Holdings, Inc., 173 Ariz. 203, 206, 841 P.2d 198, 201 (1992) (citations omitted). All parties acknowledge, and we agree, the statutes of repose in Arizona and New Mexico are matters of substantive law, and we must apply choice-of-law tenets to determine which state’s laws apply. Albano v. Shea Homes Ltd. P’ship, 227 Ariz. 121, 127, ¶ 24, 254 P.3d 360, 366 (2011) (noting statutes of repose define substantive rights); see also Rice v. Dow Chem. Co., 124 Wash.2d 205, 875 P.2d 1213, 1217 (1994) (“The general authority is that statutes of repose are to be treated ... as part of the body of a state’s substantive law in making choice-of-law determinations.”).

¶8 Arizona follows principles set forth in the Restatement (Second) of Conflict of Laws (“Restatement”) (1971) to resolve conflicLof-law issues. Bryant v. Silverman, 146 Ariz. 41, 42-43, 703 P.2d 1190, 1191-92 (1985). Section 175 provides that in wrongful death actions, “the local law of the state where the injury occurred determines the rights and liabilities of the parties” unless another state has “a more significant relationship under the principles stated in § 6 to the occurrence and the parties, in which event the local law of the other state will be applied.” Restatement § 175; see also Restatement § 146 (providing same principles for all personal injury actions). In other words, the laws of the state where the injury occurred presumptively apply unless another state has a more significant relationship. Phillips v. Gen. Motors Corp., 298 Mont. 438, 995 P.2d 1002, 1008 (2000) (characterizing Restatement § 175 as establishing a presumption). To resolve the parties’ dispute, we initially decide where Mr. Pounders’ “injury occurred” — New Mexico or Arizona— and then consider whether the other state has a more significant relationship to the event causing his injury and with the parties.

A. Place of injury

¶ 9 Mrs. Pounders argues her husband’s injury occurred in Arizona because he was living there when the effects of inhaling as *437 bestos manifested in injury — mesothelioma. She contends Mr. Pounders did not sustain an injury in New Mexico because inhalation of asbestos absent the onset of disease is not harmful. Appellees counter that Mr. Pound-ers sustained injury when he inhaled asbestos while working in New Mexico because asbestos fibers immediately damaged his lung tissue. The issue presented by the parties is whether, for purposes of resolving a choice-of-law dispute, a plaintiff diagnosed with a slow-developing disease is injured at the time of exposure to conditions causing the disease or at the time the disease manifests. The appellate courts in this state have not yet addressed the issue.

¶ 10 We start with Restatement § 175. Comment b to that section provides:

b. Place of injury. The place where the injury occurs is the place where the force set in motion by the actor first takes effect on the person. This place is not necessarily that where the death occurs.

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Related

Vicki Pounders v. Enserch E&C Inc
306 P.3d 9 (Arizona Supreme Court, 2013)

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Bluebook (online)
276 P.3d 502, 229 Ariz. 433, 632 Ariz. Adv. Rep. 26, 2012 WL 1319796, 2012 Ariz. App. LEXIS 53, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pounders-v-enserch-e-c-inc-arizctapp-2012.