BNSF Railway Co. v. L.B. Foster Co.
917 F. Supp. 2d 959
D. Neb.2013Background
- BNSF filed a six-count amended complaint against L.B. Foster for damages arising from a derailment allegedly caused by a defective insulated joint sold by Foster.
- The insulated joint was manufactured by Foster’s Indiana subcontractor, delivered to Nebraska, and installed in a track near Ardmore, South Dakota, in 2003.
- A Kansas-law agreement governing the sale existed but was unsigned by BNSF and expired before the June 2002 purchase; later, a new purchase agreement was entered in 2003 with no ongoing term covering the 2002 sale.
- Derailment occurred on January 22, 2008; BNSF alleges damages to property and business interruption nationwide, with some costs allocated to Nebraska facilities.
- L.B. Foster moved for summary judgment on statute-of-limitations grounds; the court must decide which state's law applies for limitations and substantive liability.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Which state's statute of limitations applies | Nebraska or SD may govern | Kansas governs via Agreement; SD/NE depending on conflicts | South Dakota limitations apply; SD three-year period governs product liability actions |
| What substantive law governs the action | Nebraska law governs under Restatement most significant relationship | South Dakota law governs as place of injury and related contacts | South Dakota substantive law governs BNSF’s claims |
| Are BNSF’s claims timely under SD law | Some claims fall under SD four- or six-year periods depending on theory | All claims are product liability under SD § 15-2-12.2 with a three-year limit | All claims are governed by SD § 15-2-12.2; the action is untimely |
Key Cases Cited
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986) (summary-judgment standard; evidence standard)
- Adickes v. S.H. Kress & Co., 398 U.S. 144 (1970) (favoring non-movant; credibility not resolved at summary judgment)
- Eggleton v. Plasser & Theurer Export Von Bahnbaumaschinen Gesellschaft, MBH, 495 F.3d 582 (8th Cir.2007) (forum's choice-of-law rules; apply forum state law first)
- Fanselow v. Rice, No official reporter cited; 213 F. Supp. 2d 1077 (D. Neb. 2002) (punitive damages; discussed significance of state interests in choice-of-law)
- Heinze v. Heinze, 274 Neb. 595, 742 N.W.2d 465 (2007) (place-of-injury approach with domicile/guest-statute considerations)