140 N.E.3d 830
Ind.2020Background
- In 2003 Mazak delivered a machine to General Products Corporation (GPC). In 2014 Bradley Estabrook was injured working on that machine.
- Estabrook sued Mazak in federal court in 2016 alleging a design defect; Indiana law (the Indiana Products Liability Act) governs the claim.
- The Act contains a ten-year statute of repose: actions must be brought within 10 years after delivery to the initial user, with a narrow exception allowing suit within two years after accrual if accrual occurs at least 8 but less than 10 years after delivery.
- Estabrook sued within two years of accrual (2016) but more than ten years after delivery (2003), so under the Act his suit would be time-barred under the typical reading.
- Estabrook urged a judicially suggested ‘‘new-product’’ exception (originating in Denu and cited in later cases) under which sufficient post-sale repair/refurbishment/reconstruction can create a new product and restart the repose clock.
- The federal district court certified the question to the Indiana Supreme Court: can the statute of repose be extended by post-sale repair/refurbishment/reconstruction, and if so what test applies? The Indiana Supreme Court answered: no.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the 10-year statute of repose in Ind. Code § 34-20-3-1(b) can be extended by post-sale repair/refurbishment/reconstruction (i.e., a "new-product" exception) | Post-sale reconstruction/refurbishment can produce a "new product," restarting the 10-year statutory clock and allowing otherwise time-barred suits | The statute's plain text contains no exception for post-sale modifications; the repose period cannot be extended by repairs or reconditioning | No. The Court held the statute contains no such exception and a manufacturer’s post-delivery repair/refurbishment/reconstruction does not restart the repose period |
Key Cases Cited
- Dague v. Piper Aircraft Corp., 418 N.E.2d 207 (Ind. 1981) (treated the statute as a limiting repose period and read the disjunctive 'or' effectively as 'and')
- Denu v. Western Gear Corp., 581 F. Supp. 7 (S.D. Ind. 1983) (dicta suggesting refurbishment/resale might create a ‘new’ product restarting the clock)
- Richardson v. Gallo Equip. Co., 990 F.2d 330 (7th Cir. 1993) (expanded Denu dicta to include reconstruction/reconditioning that lengthens useful life; policy concern about incentivizing rebuilds)
- Wenger v. Weldy, 605 N.E.2d 796 (Ind. Ct. App. 1993) (cited Denu as instructive on a reconditioning exception but found no relief on its facts)
- Florian v. GATX Rail Corp., 930 N.E.2d 1190 (Ind. Ct. App. 2010) (reaffirmed the Denu-type exception in the abstract; repainting did not create a new component to restart the clock)
- R.R. v. State, 106 N.E.3d 1037 (Ind. 2018) (explained the high standard for applying the absurdity doctrine)
- KS&E Sports v. Runnels, 72 N.E.3d 892 (Ind. 2017) (canon of interpreting statutes by their plain meaning)
