Thornton v. Sea Quest, Inc.

999 F. Supp. 1219, 1998 WL 146699
CourtDistrict Court, N.D. Indiana
DecidedMarch 19, 1998
Docket2:97-cv-00232
StatusPublished
Cited by5 cases

This text of 999 F. Supp. 1219 (Thornton v. Sea Quest, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thornton v. Sea Quest, Inc., 999 F. Supp. 1219, 1998 WL 146699 (N.D. Ind. 1998).

Opinion

ORDER

LOZANO, District Judge.

This matter is before the Court on Plaintiffs’ Motion for the Determination or Choice of Arkansas Law or, in the Alternative, Motion for Leave to Amend, filed on October 20, 1997, and Defendant’s Motion to Apply Indiana Law, filed on October 22,1997. For the reasons set forth below, Plaintiffs’ motion is DENIED, and Defendant’s motion is GRANTED.

BACKGROUND

Paul Thornton (“Thornton”) was a resident of Indiana, employed by Bethlehem Steel Company. Thornton was a relatively experienced scuba diver. He purchased two Sea Quest Spectrum scuba diving regulators from The Scuba Tank, a dive shop and authorized dealer of Sea Quest equipment in Valparaiso, Indiana. The Spectrum is a high performance regulator designed and manufactured in France by La Spirotechnique and delivered to Sea Quest in California under a private labeling agreement. Sea Quest delivered several Spectrums to various authorized dealers, including The Scuba Tank.

In May 1994, Thornton accompanied a group of divers from northern Indiana to Arkansas’ Bull Shoals Lake to scuba dive. On the first dive of the trip, Thornton became separated from the rest of the group. Later, his diving partners found his dead body. Plaintiffs, Thornton’s family members and the executor of his estate, believe that a malfunction of the regulator caused Thornton’s death. All Plaintiffs (with the exception of the administrator of the estate) are residents of Pennsylvania.

Sea Quest is a California corporation primarily involved in the design, manufacture, importation, and distribution of scuba diving equipment. Sea Quest’s principal place of business is California, although it transacts *1221 business throughout the United States including Arkansas and Indiana.

Plaintiffs originally filed this wrongful death action based on products liability in the United States District Court for the Eastern District of Arkansas. The action was transferred to the Northern District of Indiana upon a motion by the Defendant for change of venue pursuant to 28 U.S.C. section 1404(a). The parties now request that the Court chose the appropriate law in this case. DISCUSSION

As a general rule, “a district court whose jurisdiction is predicated on diversity of citizenship must apply the choice of law rules of the state in which it sits.” Hager v. Nat’l Union Elec. Co., 854 F.2d 259, 261 (7th Cir.1988). However, when a case comes to the court by way of a transfer of venue, the transferee court must apply the laws of the state of the transferor district court. Ferens v. John Deere Co., 494 U.S. 516, 519, 110 S.Ct. 1274, 108 L.Ed.2d 443 (1990); Van Dusen v. Barrack, 376 U.S. 612, 642, 84 S.Ct. 805, 11 L.Ed.2d 945 (1964); Eckstein v. Balcor Film Investors, 8 F.3d 1121, 1126 (7th Cir.1993). Because this case was transferred from the Eastern District of Arkansas based on 28 U.S.C. section 1404(a), this Court must apply the choice-of-law rules of the State of Arkansas. Plaintiffs insist that Arkansas’ choice-of-law rules require that Arkansas’ substantive law apply in this case. Sea Quest argues that based on Arkansas’ choice-of-law rules, Indiana’s substantive law should apply.

If Indiana’s and Arkansas’ wrongful death statutes are the same, there is a “false conflict” and the Court need not resolve the issue of which substantive law to apply. “ ‘[Fjalse conflict’ really means ‘no conflict of laws.’ If the laws of both states relevant to these set of facts are the same, or would produce the same decision in the lawsuit, there is no real conflict between them.” Phillips Petroleum Co. v. Shutts, 472 U.S. 797, 839 n. 20, 105 S.Ct. 2965, 86 L.Ed.2d 628 (1985) (dissenting opinion) (citing Robert A. Leflar, American Conflicts of Law, § 93, p. 188 (3d ed.1977)). See also E. Scoles and P. Hay, Conflict of Laws, § 2.6, p. 17 (1982) (“A ‘false conflict’ exists when the potentially applicable laws do not differ”).

The parties agree that there is a true conflict between Indiana’s and Arkansas’ wrongful death statutes. According to Indiana’s wrongful death statute, Ind.Code 34-1-1-2, the jury may calculate damages including “reasonable medical, hospital, funeral, and burial expenses, and lost earnings of such deceased person resulting from said wrongful act or omission.” Ind.Code § 34-1-1-2. These damages go to the decedent’s estate. Id. Any remaining damages going to the “exclusive benefit of the widow or widower, as the case may be and to the dependent children, if any, or dependent next of kin.” Id. If there is no widow or dependent, the measure of damages “shall be the total of the necessary and reasonable value of such hospitalization or hospital service, medical and surgical services, such funeral expenses, and such costs and expenses of administration, including attorney’s fees.” Id.

Arkansas’ wrongful death statute states that beneficiaries include “the surviving spouse, children, father and mother, brothers and sisters of the deceased person, persons standing in loco parentis to the deceased person, and persons to whom the deceased stood in loco parentis.” Ark.Code Ann. § 16-62-102(d). Damages may include “such damages as will be fair and just compensation for pecuniary injuries, including a spouse’s loss of services and companionship of a deceased spouse and mental anguish resulting from the death to the surviving spouse and beneficiaries of the deceased person.” Ark.Code § 16 — 62—102(f)(1). Under Indiana law, the potential beneficiaries are narrower and the potential recovery is less than in Arkansas. Thus, there is a true conflict between Indiana’s and Arkansas’ statutes, and the Court must determine which substantive law applies in this case.

The parties spend much of their briefs arguing over Arkansas’ choice-of-law rules. Arkansas’ choice-of-law rule for torts has changed over time. For many years, followed the rule of lex loci delicti, and applied the substantive law of the state where the accident occurred. See Bell Transp. Co. v. Morehead, 246 Ark. 170, 437 S.W.2d 234 (1969); McGinty v. Ballentine Produce, Inc., 241 Ark. 533, 408 S.W.2d 891 (1966). In *1222 Wallis v. Mrs. Smith’s Pie Co.,

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Bluebook (online)
999 F. Supp. 1219, 1998 WL 146699, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thornton-v-sea-quest-inc-innd-1998.