prod.liab.rep. (Cch) P 13,094 Armando Saenz and Sylvia Saenz v. Keller Industries of Texas, Inc.

951 F.2d 665, 1992 U.S. App. LEXIS 936, 1992 WL 3058
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 28, 1992
Docket90-6041
StatusPublished
Cited by28 cases

This text of 951 F.2d 665 (prod.liab.rep. (Cch) P 13,094 Armando Saenz and Sylvia Saenz v. Keller Industries of Texas, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
prod.liab.rep. (Cch) P 13,094 Armando Saenz and Sylvia Saenz v. Keller Industries of Texas, Inc., 951 F.2d 665, 1992 U.S. App. LEXIS 936, 1992 WL 3058 (5th Cir. 1992).

Opinion

THORNBERRY, Circuit Judge:

The Plaintiffs, Armando Saenz and his wife Sylvia Saenz, appeal the district court’s grant of summary judgment against them. The Plaintiffs sued the Defendants in federal court on diversity grounds, asserting causes of action for negligence, products liability, breach of warranty, and deceptive trade practices. Although the Plaintiffs filed their suit within the limitations period, they did not obtain service upon the Defendants until after the statute of limitations expired. The district court entered summary judgment against the Plaintiffs based on the expiration of the statute of limitations, and the Plaintiffs appeal.

Background

On April 25, 1985, the Plaintiffs purchased a ladder from Defendant Channel Home Centers, Inc. (“Channel”) which had been manufactured by Defendant Keller Industries of Texas, Inc. (“Keller”). Mr. Saenz fell from the ladder approximately two years later, on April 20, 1987. The Plaintiffs sued Channel and Keller for negligence, products liability, breach of warranty, and deceptive trade practices, claiming that the ladder was defective and had caused the injuries suffered by Mr. Saenz when he fell.

The Plaintiffs filed their complaint on February 1, 1989. On the day the suit was filed, a secretary from the Plaintiffs’ law firm delivered the paperwork to the courthouse. The secretary asked the clerk whether all the appropriate forms had been submitted, and the clerk told her that they had, although the summons request form required by the local rules was not attached. Because the request form was not submitted, the summons did not issue for service on the Defendants.

Over the following months, the secretary called the clerk’s office several times to find out whether the Defendants had been served. Each time, the clerk told her that *667 service had not yet been accomplished. In a phone call on May 8, 1989, the clerk told the secretary that no summons was on file. The Plaintiffs’ attorney then submitted a summons request form, and the Defendants were served on May 24, 1989.

The Defendants moved for summary judgment based on the expiration of the statute of limitations, arguing that the Plaintiffs failed to use due diligence in obtaining service, and that therefore, the statute of limitations did not toll when the Plaintiffs filed suit on February 1, 1989. The Plaintiffs offered two arguments in response. First, they claimed that they exercised due diligence to procure service on Defendants. They asserted that the actions taken by the law firm established due diligence under Texas case law, so the statute of limitations tolled when the suit was filed on February 1, 1989. Second, the Plaintiffs claimed that because Mr. Saenz was removed from the accident site immediately after he fell, he was unable to examine the ladder and discover its defect until June 20, 1987. They argued that the Texas discovery rule applies to toll the statute until Mr. Saenz discovered the cause of his injury, so the statute of limitations did not expire until June 20, 1989, approximately one month after the Defendants were served.

The district court rejected the Plaintiffs’ arguments and granted the Defendants’ motion for summary judgment. The district court held that Plaintiffs failed as a matter of law to exercise due diligence in procuring service on the Defendants. Therefore, the statute of limitations continued to run after the Plaintiffs filed suit. Furthermore, the district court held that the discovery rule did not apply to this case, so the two-year statute of limitations for the personal injury, products liability, and deceptive trade practices claims began to run on the date of injury. The district court also held that the four-year limitations period for Plaintiffs’ warranty claim ran from the date of sale, expiring on April 25, 1989. The district court therefore granted summary judgment against the Plaintiffs on all claims.

Discussion

We review'the district court’s grant of summary judgment de novo. Walker v. Sears, Roebuck & Co., 853 F.2d 355, 358 (5th Cir.1988). We also review de novo questions of law decided by the district court. Atorie Air, Inc. v. Federal Aviation Administration, 942 F.2d 954, 959 (5th Cir.1991).

Due Diligence

Texas law applies in a diversity case to determine whether the Plaintiffs tolled the statute of limitations when they filed suit. Walker v. Armco Steel Corp., 446 U.S. 740, 100 S.Ct. 1978, 1979, 64 L.Ed.2d 659 (1980). In Texas, a plaintiff must not only file suit but also use due diligence in procuring service on the defendant in order to toll the statute of limitations. Gant v. DeLeon, 786 S.W.2d 259, 260 (Tex.1990). The determination of due diligence is usually a fact question; the standard is the ordinary prudent person standard. However, lack of due diligence may be found as a matter of law if the plaintiff offers no excuse for his failure to procure service, or if the plaintiff’s excuse conclusively negates diligence. Perry v. Kroger Stores, Store No. 119, 741 S.W.2d 533 (Tex.App.—Dallas 1987, no writ); Valdez v. Charles Orsinger Buick Co., 715 S.W.2d 126 (Tex.App.—Texarkana 1986, no writ). In the present case, the district court found that, as a matter of law, the Plaintiffs failed to exercise due diligence because they failed to follow the district court’s local rule requiring a summons request form as a prerequisite to the issuance of a summons.

Upon review of Texas case law regarding this issue, we conclude that the district court erred by removing this issue from the jury. Only in rare instances have the Texas courts concluded that an excuse offered by the plaintiffs for failure to procure service negated the exercise of due diligence as a matter of law. Those cases presented facts indicating a much more egregious lapse in attorney diligence than indicated here. See Perry v. Kroger Stores, Store No. 119, 741 S.W.2d 533 (Tex. *668 App.—Dallas 1987, no writ); Reynolds v. Alcorn, 601 S.W.2d 785 (Tex.Civ.App.—Amarillo 1980, no writ).

In addition, the Texas court of appeals decision in Valdez v. Charles Orsinger Buick Co. directs our reversal of the district court’s grant of summary judgment. Valdez v. Charles Orsinger Buick Co., 715 S.W.2d 126 (Tex.App.—Texarkana 1986, no writ). In Valdez,

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951 F.2d 665, 1992 U.S. App. LEXIS 936, 1992 WL 3058, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prodliabrep-cch-p-13094-armando-saenz-and-sylvia-saenz-v-keller-ca5-1992.