Varley v. Tampax, Inc.

855 F.2d 696, 1988 WL 90475
Court of Appeals for the Tenth Circuit·Decided September 2, 1988·No. No. 87-1848·Published·Cited by 23 cases

Opinion

McWILLIAMS, Circuit Judge.

Following an acute and severe illness, Constance Ann Earhart died on March 5, 1984, while hospitalized at St. Mary Hospital, in Manhattan, Kansas. Ms. Earhart was at the time under the care of Barbara D. Taylor, M.D. For some time prior to her death, Ms. Earhart had been using super tampons manufactured by Tampax, Incorporated, and it was contended that as a result of such use she became ill with what is known as Toxic Shock Syndrome (TSS) and died therefrom.

On March 18, 1985, two separate actions were filed in the United States District Court for the District of Kansas based on Ms. Earhart’s death. In one action, Dorothy and Charles Varley, the parents and heirs at law of Constance Ann Earhart, brought a wrongful death action against Tampax and Dr. Taylor. According to their complaint, the Varleys were citizens of Iowa, Tampax was a citizen of New York, and Dr. Taylor was a citizen of Kansas. In that complaint the Varleys set forth four claims for relief against Tampax based on negligence, breach of implied and express warranties, and strict product liability. The fifth and last claim for relief in that complaint was asserted against Dr. Taylor and was based on negligent treatment of Ms. Earhart.

On the same date the Varleys filed their complaint, Kathryn Holen, as Administra-trix of Ms. Earhart’s estate, brought a survival action in the United States District Court for the District of Kansas against Tampax and Dr. Taylor, setting forth the same claims asserted by the Varleys in their complaint. The Varleys and Kathryn Holen were represented by the same counsel.

The district court, on motion, consolidated the two cases for trial purposes. Later, by stipulation of the parties, the separate actions of the Varleys and Kathryn Holen were dismissed and a single complaint in which both the Varleys and Kathryn Holen were plaintiffs was filed, naming again Tampax and Dr. Taylor as defendants. That complaint was later amended to add a claim against St. Mary Hospital based on negligent treatment.

Thereafter, extensive discovery ensued, involving, inter alia, the deposing of four prospective expert witnesses for the plaintiffs whose testimony related to Ms. Earhart’s death and the cause therefor. All defendants — Tampax, Dr. Taylor, and St. Mary Hospital — then filed motions for summary judgment.

Without getting into the substance of the motions for summary judgment, it is sufficient to note that, with a trial set for the very near future, the district court heard oral argument on the motions on February 13, 1987. On that date, the question of federal jurisdiction was first raised by the district court, sua sponte, when it noted that the administratrix Kathryn Holen, Dr. Taylor, and St. Mary Hospital were all citizens of Kansas. Recognizing that none of the parties had at that time addressed the jurisdictional issue, the district court stated that it might want the parties to later brief the question.

On March 24, 1987, without the aid of further briefing, the district court ruled on the defendants’ motions for summary judgment. First, the district court granted Tampax’s motion for summary judgment, holding that the depositions of plaintiffs’ expert witnesses demonstrated that “plaintiffs’ proof altogether fails to establish a prima facie case of proximate cause or defect.” The district court at the same time denied the motions for summary judgment filed by Dr. Taylor and St. Mary Hospital, although it granted St. Mary’s motion as it related to punitive damages only.

[698] In the same order in which it granted Tampax’s motion for summary judgment, however, the district court went on to hold that the court lacked subject matter jurisdiction because of a lack of diversity, i.e., Holen, Dr. Taylor, and St. Mary Hospital were all citizens of Kansas, and then proceeded to dismiss the action “without prejudice in its entirety.” 1 In so holding, the district court, in effect, nullified its order granting Tampax’s motion for summary judgment, and that fact precipitates the present appeal. On the following day, March 25, 1987, the district court entered formal judgment wherein it granted Tampax’s motion for summary judgment and then dismissed without prejudice the action “in its entirety for lack of diversity jurisdiction.”

Tampax filed a timely motion under Fed. R.Civ.P. 59(e) to amend the judgment of dismissal, seeking to have the district court dismiss non-diverse parties from the proceeding to the end that there would still be diversity and, accordingly, the summary judgment granted Tampax would stand. More will be said about the contents of that motion later. The plaintiffs filed a response in opposition to Tampax’s motion to amend. The district court thereafter denied Tampax’s motion without comment. This appeal by Tampax follows.

As indicated, the issue of federal jurisdiction based on diversity was not raised by any of the parties. Apparently all concerned were of the view that although Kathryn Holen, the administratrix, was herself a citizen of Kansas, such fact did not defeat diversity since the statutory beneficiaries under the estate, the deceased’s parents, were citizens of Iowa.

In its Memorandum and Order of March 24, 1988, the district court agreed at the outset with Tampax’s argument that “no expert ... will testify that Ms. Earhart died of TSS” and that “[mjoreover, there is no expert who will testify that, even if she did have TSS, it was caused by her use of Tampax super tampons or that these tampons are in any way defective.” The court cited these as good and sufficient reasons and granted Tampax’s motion for summary judgment. Then, in the next sentence, the district court spoke as follows: “However, as the court finds it lacks subject matter jurisdiction, the case will be dismissed without prejudice in its entirety.”

In that same March 24 order, the district court then proceeded to review the law on summary judgment and to itemize the undisputed material facts, setting forth the medical events leading up to Ms. Earhart’s death and analyzing in detail the depositions taken by Tampax of plaintiffs’ prospective expert witnesses. At the conclusion of this segment of its March 24 order, the district court again stated that “Tampax, Inc. is entitled to summary judgment.”

The district court in its March 24 order next addressed the jurisdictional question, and concluded that Kathryn Holen, the ad-ministratrix, was not just a “nominal party whose citizenship need not be considered in determining whether complete diversity exists.” In the final paragraph of its March 24 order, the district court again granted Tampax’s motion for summary judgment, but in the final sentence of its order proceeded to dismiss the case without prejudice “in its entirety for lack of diversity jurisdiction.”

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Varley v. Tampax, Inc., 855 F.2d 696, 1988 WL 90475 (10th Cir. 1988).

855 F.2d 696 (Varley v. Tampax, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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