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LONG v. SEARS ROEBUCK & CO.

February 21, 1995

MAURICE I. LONG and CATHERINE LONG, Plaintiffs,
v.
SEARS ROEBUCK & CO., et al., Defendants.



The opinion of the court was delivered by: PAUL L. FRIEDMAN

 At the pre-trial conference held on January 18, 1995, the Court and the parties agreed that the Court would decide three issues in advance of the trial scheduled for March 6, 1995. These issues, on which the parties have submitted memoranda of law, are: choice of law, the applicability of the doctrine of res ipsa loquitur, and whether the statute of limitations has run on plaintiffs' breach of warranty claims. The Court addresses these three issues seriatim.

 I. CHOICE OF LAW

 Plaintiffs Maurice and Catherine Long are Maryland residents. On September 18, 1985, Mr. Long purchased a riding lawn tractor in the District of Columbia from Defendant Sears, Roebuck & Co., Inc., a New York corporation that conducts business in the District of Columbia. Defendant American Yard Products, Inc., a Delaware corporation, designed and manufactured the lawn tractor in South Carolina. Defendant White Consolidated Industries, Inc., also a Delaware Corporation, is the parent of American Yard Products, Inc.

 Plaintiffs allege that at the time of the purchase of the lawn tractor at a Sears store in the District of Columbia, the Sears sales person discussed safety features with Mr. Long and told him that the lawn tractor possessed all the state of the art safety devices. Plaintiffs allege that Mr. Long relied on the sales person's representations in his decision to purchase the lawn tractor. Mr. Long owned and operated the lawn tractor in Maryland for over four years. On or about September 1, 1990, while operating the lawn tractor in Maryland, the lawn tractor rolled over and injured him.

 Plaintiffs brought this diversity action, claiming negligence, strict liability, breach of implied warranty of merchantability, breach of implied warranty of fitness for a particular purpose, and breach of express warranty. Plaintiff Catherine Long also claims loss of consortium. Plaintiffs seek compensatory and punitive damages.

 Plaintiffs claim that District of Columbia law should apply to this case, while defendants contend that Maryland law should apply. In a diversity action, the forum must apply the choice of law principles of the state or jurisdiction in which it sits. Bledsoe v. Crowley, 270 U.S. App. D.C. 308, 849 F.2d 639, 641 (D.C. Cir. 1988). The District of Columbia employs a modified "governmental interest analysis," under which the court must evaluate the governmental policies underlying the applicable laws and then determine which jurisdiction's policy would be most advanced by having its law applied to the facts in the case. Id.; Moore v. Ronald Hsu Const. Co., Inc., 576 A.2d 734, 737 (D.C. 1990) (citations omitted). Under proper conflict of laws principles, the Court is to conduct the choice of law analysis for each distinct issue being adjudicated. In re Air Crash Disaster at Washington, D.C., 559 F. Supp. 333, 341 (D.D.C. 1983).

 In applying the governmental interests analysis, the courts of the District of Columbia look to the Restatement (Second) of Conflict of Laws to identify the jurisdiction with the "most significant relationship" to each issue in dispute. Hercules & Co., Ltd. v. Shama Restaurant Corp., 566 A.2d 31, 40 (D.C. 1989). *fn1" To determine which state has the most significant relationship to the dispute, the Court examines a list of contacts that states might have with the litigation. In a tort action, the Court considers the place where the injury occurred, the place where the conduct causing the injury occurred, the residence, domicile, place of incorporation or place of business of the parties, and the place where the parties' relationship, if any, is centered. Restatement (Second) of Conflict of Laws § 145 (1971). While the Restatement includes a long list of factors to be considered in evaluating the relevant importance of these contacts with the jurisdiction, see Restatement (Second) of Conflict of Laws § 6 (1971), the most important factors the Court should consider in a tort action are the relevant policies of the forum and of other interested states and the relative interests of those states in the determination of the particular issues. In re Air Crash Disaster at Washington, D.C., 559 F. Supp. at 342.

 First, the Court must determine whether there is a genuine conflict between the laws of the involved jurisdictions or whether there is a "false conflict." Eli Lilly & Co. v. Home Ins. Co., 246 U.S. App. D.C. 243, 764 F.2d 876, 882 (D.C. Cir. 1985), cert. denied, 479 U.S. 1060, 93 L. Ed. 2d 991, 107 S. Ct. 940 (1987). A false conflict exists when either (1) the laws of the interested states are the same; (2) when those laws, though different, produce the same result when applied to the facts at issue; or (3) when the policies of one state would be advanced by the application of its law and the policies of the states whose laws are claimed to be in conflict would not be advanced by application of their law. Biscoe v. Arlington County, 238 U.S. App. D.C. 206, 738 F.2d 1352, 1360 (D.C. Cir. 1984), cert. denied, 469 U.S. 1159, 83 L. Ed. 2d 923, 105 S. Ct. 909 (1985); Pearce v. E.F. Hutton Group, Inc., et al., 664 F. Supp. 1490, 1496 (D.D.C. 1987). If a false conflict exists, the Court may apply the law of the state whose policy would be advanced by application of its law or forum law if no state's policy would be advanced by application of its law. See Williams v. Rawlings Truck Line, Inc., 123 U.S. App. D.C. 121, 357 F.2d 581, 586 (D.C. Cir. 1965); Biscoe v. Arlington County, 738 F.2d at 1360; In re Air Crash Disaster at Washington, D.C., 559 F. Supp. at 343 n.10.

 With respect to the negligence and strict liability claims, the Court finds that no true conflict exists. There is no difference between the law of negligence and strict liability in Maryland and in the District of Columbia, except for a cap that Maryland law places on "noneconomic" damages; such damages include pain, suffering, inconvenience, physical impairment, disfigurement, loss of consortium, or other nonpecuniary injury. Md. Cts. & Jud. Proc. Code Ann. § 11-108. Because the policy underlying the cap would not be advanced by application of Maryland law, however, a true conflict does not arise from this one difference.

 A state may place a cap on damages to limit the liability of defendants resident in or doing business in the state. Because the defendants are not located in Maryland, did not do business in Maryland and did not engage in conduct in Maryland relating to plaintiffs' claims, this policy would not be advanced by applying Maryland law. On the other hand, one of the policies behind the District of Columbia's negligence and strict liability laws is to regulate conduct in the District that could cause injury. See In re Air Craft Disaster at Washington, D.C., 559 F. Supp. at 345. Because the defendants do business in the District of Columbia and it was their conduct in the District that allegedly led to plaintiff's injury, this District of Columbia policy would be furthered by application of its law. Accordingly, the Court shall apply District of Columbia law. See Biscoe v. Arlington County, 738 F.2d at 1360.

 Even assuming there were a true conflict, the Court would apply District of Columbia law because the District of Columbia has the most significant relationship to the negligence and strict liability claims. See Restatement (Second) of Conflict of Laws §§ 6, 145 (1971). It is true that Maryland has an interest because the injury occurred in Maryland and the plaintiff resides in Maryland. The District of Columbia has more significant contacts with these claims, however, justifying application of its law. First, the conduct leading to the injury occurred in the District of Columbia; Sears sold the allegedly defective product to Mr. Long in the District of Columbia. Second, the seller-purchaser relationship between the parties was established and consummated in the District of Columbia. Third, Sears' alleged misrepresentation that the product had all the state of the art safety features occurred in the District of Columbia. Finally, each defendant does business in the District of Columbia. While the lawn tractor was designed and manufactured in South Carolina, it was shipped from South Carolina into the District of Columbia by American Yard Products for the purpose of sale to a consumer at the Sears store located in the District of Columbia. Neither party urges the application of South Carolina law, and plaintiffs claim that the defendants are jointly and severally liable for their negligence in the design, manufacture, sale and negligent or intentional misrepresentations to plaintiff in the District of Columbia.

 The District of Columbia has an interest in deterring tortious behavior occurring in the District, and that policy is advanced by applying D.C. law. The District of Columbia also has an interest in ensuring that those conducting business in the District do not provide unsafe products to persons who have decided to shop at stores in the District and that they make accurate representations to District of Columbia consumers while doing business in the District of Columbia. Because "the state where the defendant's conduct occurs has the dominant interest in regulating it and in determining whether it is tortious in character," the Court shall apply D.C. law. Biscoe v. Arlington County, 738 F.2d at 1361 (quoting Restatement (Second) of Conflict of Laws § 146 cmt. d (1971)). *fn2"

 A false conflict also exists with respect to the breach of warranty claims. The Uniform Commercial Code sections applying to breaches of warranty have been adopted and codified in both the District of Columbia and Maryland. See D.C. Code §§ 28:2-313, 28:2-314, 28:2-315; Md. Com. Law Code Ann. §§ 2-313, 2-314, 2-315. Even assuming there were a genuine conflict, the Court would apply District of Columbia law because the conduct underlying the breach of warranty claims occurred in the District of Columbia: the product was sold and delivered to Mr. Long in the District of Columbia, and the express and implied warranties were made to him here. The sale of the lawn tractor carries with it an implied warranty of ...


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