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140 N.E.3d 830
Ind.
2020
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Background

  • 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)
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Case Details

Case Name: Bradley A. Estabrook v. Mazak Corporation
Court Name: Indiana Supreme Court
Date Published: Mar 2, 2020
Citations: 140 N.E.3d 830; 19S-CQ-590
Docket Number: 19S-CQ-590
Court Abbreviation: Ind.
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    Bradley A. Estabrook v. Mazak Corporation, 140 N.E.3d 830