Van Dyke v. Columbia MacHine, Inc.

246 F. Supp. 2d 191, 2003 U.S. Dist. LEXIS 2689, 2003 WL 548688
CourtDistrict Court, W.D. New York
DecidedFebruary 18, 2003
Docket6:01-cv-06357
StatusPublished
Cited by3 cases

This text of 246 F. Supp. 2d 191 (Van Dyke v. Columbia MacHine, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Van Dyke v. Columbia MacHine, Inc., 246 F. Supp. 2d 191, 2003 U.S. Dist. LEXIS 2689, 2003 WL 548688 (W.D.N.Y. 2003).

Opinion

DECISION AND ORDER

LARIMER, District Judge.

INTRODUCTION

Plaintiff Travis Van Dyke (“plaintiff’) filed this diversity action asserting claims based on negligence, breach of warranty, failure to warn, and strict products liability against Columbia Machine Inc. (“Columbia”), the manufacturer of a palletizer machine 1 owned and operated by plaintiffs employer, Leprino Foods Company (“Lep-rino”). Plaintiff was gravely injured while performing routine maintenance on the palletizer during work at Leprino.

Leprino is a Colorado corporation with its principal place of business in Denver. *192 It operates a cheese processing plant located directly on the New York and Pennsylvania state line. Part of the plant is located in New York and part of the plant is located in Pennsylvania. Leprino purchased the palletizer from Columbia in 1987. Columbia is a Washington corporation with its principal place of business in Vancouver, Washington. Columbia shipped the palletizer directly to the New York portion of Leprino’s plant, where it was still located at the time of the accident.

Given its unique location, Leprino employs both New York and Pennsylvania residents. Leprino has a policy that workers who injure themselves in the course of their employment should avail themselves to the workers’ compensation laws and benefits of the state of their residence. In this case, plaintiff, a Pennsylvania resident, applied for and received Pennsylvania workers’ compensation. Dkt. # 18, Olsen Aff. ¶ 4.

Columbia filed a third-party complaint against Leprino for contribution or indemnification pursuant to New York Workers’ Compensation Law § 11. Section 11 allows a third party to seek contribution or indemnification from an employer for its proportionate share of liability (if any) where an employee suffers a “grave injury” in the course of his employment and sues that third party. Section 11 is an exception to the exclusivity provisions of the Workers’ Compensation Law by allowing the third party claim against the employer even though a direct action by the employee against the employer is prohibited. Because of Leprino’s unique location, on the border of New York and Pennsylvania, this case presents interesting issues concerning the choice of law that should apply. In addition to New York, three other states, Pennsylvania, Washington, and Colorado all have some contacts with this litigation and the parties. Except for New York, all of these three other states preclude actions for contribution or indemnification by third-parties against employers of injured parties. In a nutshell, Lep-rino claims that New York law does not apply in this situation and, therefore, the third-party complaint must be dismissed.

Leprino filed the instant motion to dismiss Columbia’s third-party complaint pursuant to Fed.R.Civ.P. 12(b)(6) for failure to state a claim or, in the alternative, for summary judgment pursuant to Fed. R.Civ.P. 56. Leprino argues that Columbia cannot avail itself of New York’s grave injury exception because Pennsylvania Workers’ Compensation Law, which prohibits such an action, applies to this case. Alternatively, Leprino claims that even assuming New York law applies, Columbia cannot take advantage of Workers’ Compensation Law § 11 because Leprino did not agree in writing to indemnify Columbia. Lastly, Leprino asserts that Columbia waived its right to contribution or indemnification from Leprino in certain purchase and service agreements between the parties.

Columbia argues that New York law does apply because it is the site of the accident and because New York has the greatest interest in the litigation. Columbia also claims that no writing is required to bring a claim pursuant to Section 11 and that it did not waive its right to seek contribution or indemnification from Lep-rino.

For the reasons that follow, I find that Pennsylvania law should apply to this case, and not New York law. Therefore, Lepri-no’s motion to dismiss Columbia’ third-party complaint is granted.

DISCUSSION

A. Choice of Law

In a case in which jurisdiction is based on diversity of citizenship, a federal *193 court sitting in New York State must apply New York’s choice of law rules. Alderman v. Pan Am World Airways, 169 F.3d 99, 103 (1999), citing Guaranty Trust Co. v. York, 326 U.S. 99, 108-09, 65 S.Ct. 1464, 89 L.Ed. 2079 (1945); Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487, 496, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941). In New York, the relevant analytical approach to choice of law issues is the ‘interest analysis.’ See Schultz v. Boy Scouts of Am., 65 N.Y.2d 189, 197, 491 N.Y.S.2d 90, 480 N.E.2d 679 (1985); In re Allstate Ins. Co. [Stolarz], 81 N.Y.2d 219, 225, 597 N.Y.S.2d 904, 613 N.E.2d 936 (1993).

Pursuant to the interest analysis, “the law of the jurisdiction having the greatest interest in the litigation will be applied and ... the facts or contacts which obtain significance in defining State interests are those which relate to the purpose of the particular law in conflict.” Miller v. Miller, 22 N.Y.2d 12, 15-16, 290 N.Y.S.2d 734, 237 N.E.2d 877 (1968); Neurmier v. Kuehner, 31 N.Y.2d 121, 127, 335 N.Y.S.2d 64, 286 N.E.2d 454 (1972). The interest analysis adopted by the New York Court of Appeals specifically “rejected the mechanical place of injury rule in personal injury cases because it failed to take account of underlying policy considerations.” Neumeier, 31 N.Y.2d at 127, 335 N.Y.S.2d 64, 286 N.E.2d 454. The Court recognized that it was abandoning the “certainty provided by the old rule for the more just, fair and practical result that may best be achieved by giving controlling effect to the law of the jurisdiction which has the greatest concern with, or interest in, the specific issue raised in the litigation.” Id. Under this formulation, the significant contacts are still the parties’ domiciles and the site of the tort. See Schultz, 65 N.Y.2d at 197, 491 N.Y.S.2d 90, 480 N.E.2d 679. However, other significant contacts to consider are the state where the conduct causing the injury occurred, the state where the relationship between the parties is centered, and, in the context of workers’ compensation, the state where plaintiff has accepted workers’ compensation benefits. See Roach v. McGuire & Bennett, Inc., 146 A.D.2d 89, 539 N.Y.S.2d 138 (3d Dep’t 1989); see also

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Bluebook (online)
246 F. Supp. 2d 191, 2003 U.S. Dist. LEXIS 2689, 2003 WL 548688, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-dyke-v-columbia-machine-inc-nywd-2003.