Singer v. Eli Lilly & Co.

153 A.D.2d 210, 549 N.Y.S.2d 654, 1990 N.Y. App. Div. LEXIS 50
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 4, 1990
StatusPublished
Cited by16 cases

This text of 153 A.D.2d 210 (Singer v. Eli Lilly & Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Singer v. Eli Lilly & Co., 153 A.D.2d 210, 549 N.Y.S.2d 654, 1990 N.Y. App. Div. LEXIS 50 (N.Y. Ct. App. 1990).

Opinion

OPINION OF THE COURT

Sullivan, J. P.

Plaintiffs, a husband and wife, brought this action against eight manufacturers1 of the prescription drug, diethylstilbestrol (DES), seeking the recovery of damages for injuries allegedly sustained as a result of the wife’s in útero exposure to the drug in 1949. Although expressly brought pursuant to New York’s "Toxic Tort Revival Statute” (L 1986, ch 682, § 4), and concededly commenced more than seven months after the expiration of the statute’s one-year window period, effective July 30, 1986, plaintiffs contend that the action is nonetheless timely by virtue of the commencement of two purported class actions within the one-year window period.2

Defendant American Home Products Corp., pursuant to CPLR 3211 (a) (5), moved to dismiss on the ground that the action was time barred. Each of the other defendants thereafter moved on the same ground. In arguing that the pendency of two class actions filed within the window period on behalf of women similarly exposed to DES tolled the revival period, plaintiffs relied on American Pipe & Constr. Co. v Utah (414 US 538), which held that in certain circumstances the commencement of a class action tolls the running of the applicable Statute of Limitations as to all putative members of the class.

The motion court granted the motions, holding that commencement of the action within the one-year window period was a condition precedent to bringing a suit for per[213]*213sonal injury arising out of DES exposure. Thus, the court reasoned, that period could not be affected by the tolling provisions applicable to Statutes of Limitation, even if New York courts were to adopt the Federal doctrine, as expressed by American Pipe (supra), which permits tolling of a Statute of Limitations during the pendency of a class action. We affirm.

On July 30, 1986, Governor Cuomo signed into law a "tort reform” package, including the revival statute, which provided that any action seeking damages for personal injury, property damage or death caused by the latent effects of exposure to five substances, including DES, that was time barred or had been previously dismissed because the applicable period of limitations had expired, "is hereby revived and an action thereon may be commenced provided such action is commenced within one year from the effective date of this act” (L 1986, ch 682, § 4).

The revival provision was the second part of a two-pronged reform to remedy the inequity of New York’s former date-of-exposure rule for injuries caused by the latent effects of toxic substances. In that regard, the central focus of the reform package was the adoption of a discovery Statute of Limitations (L 1986, ch 682, §2, adding CPLR 214-c). Henceforth, an injured party would be permitted to assert a cause of action within three years from the date of discovery of the injury, regardless of the time of exposure. (Besser v Squibb & Sons, 146 AD2d 107, 111-112, lv granted 151 AD2d 306.)

The revival statute was itself a product of compromise. "Legislative history indicates that the five named substances were distinguished from other toxic substances (§ 2) as a result of compromise between the Assembly (which had voted to permit revival for all toxic substances) and the Senate which wanted to limit revival. The Legislature ultimately limited revival based upon the existence of an identifiable group affected and the resulting ability to predict the future costs of such revival. The Legislature was apparently concerned that under a broader revival statute, the large number of unknown victims would create unpredictable risks and costs.” (Hymowitz v Lilly & Co., 136 Misc 2d 482, 484, affd 139 AD2d 437, affd 73 NY2d 487, cert denied — US —, 110 S Ct 350 [Oct. 30, 1989].) Thus, the limitation of revival to a one-year period and the selection of only five substances reflected an intent to limit the effects of revival.

We agree with the motion court’s analysis that the revival [214]*214statute’s one-year period is a condition precedent, rather than a Statute of Limitations. "Where a liability is created by a statute, and the same statute that creates the liability limits the right of action thereon to a stated period of time, the effect is that at the termination of that time the liability expires, leaving nothing thereafter on which to predicate an action.” (Gatti Paper Stock Corp. v Erie R. R. Co., 247 App Div 45, 47, affd 272 NY 535; see also, Cimo v State of New York, 306 NY 143, 150; Romano v Romano, 19 NY2d 444, 448.) Thus, compliance with the time period is a substantive element of the cause of action. (See, Denkensohn v Ridgway Apts., 13 Misc 2d 389, 391 [App Term, 2d Dept] holding that where the sanie statute that creates the cause of action prescribes the time for its commencement, such "period of limitation is deemed a matter of substance”; accord, Wesling v Solovey, 277 App Div 834.) In those instances where the statute does not so provide, the question of whether the time limitation is a condition precedent or a Statute of Limitations is ultimately one of legislative intent. (Kahn v Trans World Airlines, 82 AD2d 696.)

In Romano (supra) the Court of Appeals affirmed the dismissal of an action for annulment brought more than three years after the discovery of the fraud giving rise to the action. The cause of action was dependent on the annulment statute, which incorporated a time limitation therein. The statute, as the court noted, "literally creates the cause of action for annulment of marriage for fraud by providing that such an action 'may be maintained’ ” (19 NY2d, at 447). Distinguishing a time limitation inherent in the cause of action from one which merely provides a Statute of Limitations, the Romano court characterized the former as a "qualification annexed to the created right” (supra, at 448). In such an instance, " 'there is no right of action whatever independent of the limitation; a lapse of the statutory period operates * * * to extinguish the right altogether.’ ” (Supra, at 447.)

Similarly, the literal language of the revival statute, upon which any DES action based on a time-barred claim is dependent, supports the conclusion that commencement of the action within the window period is a condition precedent to the maintenance of such action. The statute clearly states that any claim for personal injuries arising out of exposure to DES is revived, "provided such action is commenced within one year from the effective date of this act”. Significantly, the time period is contained within the statute itself. Moreover, [215]*215the statutory language—"provided such action is commenced” —conditions the exercise of the right. Thus, the commencement of an action within the one-year window is integrally tied to the exercise of the right.

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Cite This Page — Counsel Stack

Bluebook (online)
153 A.D.2d 210, 549 N.Y.S.2d 654, 1990 N.Y. App. Div. LEXIS 50, Counsel Stack Legal Research, https://law.counselstack.com/opinion/singer-v-eli-lilly-co-nyappdiv-1990.