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284 P.3d 314
Kan.
2012
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Background

  • Seaboard filed a Kansas action against Marsh and AIG, asserting multiple tort, KRTA, and contract claims with varying statutes of limitation.
  • Seaboard claimed tolling due to defendants’ concealment and also relied on class-action tolling under K.S.A. 60-518.
  • MDL class action against Marsh, AIG, and others consolidated in the federal court in New Jersey, with Seaboard named as a putative class member.
  • MDL dismissal occurred in 2007, largely reversed on appeal, and Seaboard opted out of Marsh’s global settlement on Oct. 17, 2008.
  • Seaboard filed the present action on Oct. 16, 2009, within 6 months after the opt-out and tolling period began, seeking to save its claims under K.S.A. 60-518.
  • The district court held that K.S.A. 60-518 applies to cross-jurisdictional first actions and that Seaboard’s action was timely under the saving statute.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether K.S.A. 60-518 applies to an initial action filed in another state Seaboard: statute applies to any action, not limited to Kansas filings Defendants: cross-jurisdictional saving may be limited or improper Yes, statute applies to any action filed in any jurisdiction.
Whether the MDL dismissal triggered the 6-month grace period Seaboard: dismissal not a merit-based failure due to timely appeal Defendants: dismissal triggers grace period No, the dismissal plus timely appeal did not conclusively trigger the period; opt-out later initiated triggering event.
Whether Seaboard’s second action was filed within 6 months of the first-action failure Seaboard: filing within grace period after opt-out tolling Marsh/AIG: timing not met Yes; Marsh timely within six months; AIG timely due to tolling and opt-out coinciding with filing.
Whether the second action and the MDL were substantially similar to permit saving under 60-518 Seaboard: same facts/notice; substantial similarity suffices Defendants: only identical claims/parties guarantee saving Yes; substantial similarity and notice is sufficient; not all MDL defendants must be named.
Whether Seaboard, as a putative MDL class member, qualifies as a plaintiff for 60-518 purposes Seaboard: putative class member fits 60-518 Defendants: only named plaintiffs may qualify Yes; putative class member qualifies under Waltrip and related authority.

Key Cases Cited

  • Waltrip v. Sidwell Corp., 234 Kan. 1059 (1984) (safety of saving statute for putative class members; pendency preserves rights under 60-518)
  • Behen v. Street Railway Co., 85 Kan. 491 (1911) (saving statute applicable to cross-jurisdiction actions; remedial purpose)
  • Jackson v. Prairie Oil & Gas Co., 115 Kan. 386 (1924) (first action in another state; debate over commencement and saving statute scope)
  • Campbell v. Hubbard, 41 Kan. App. 2d 1 (2008) (forum law on when first action was commenced; saving statute applicability across fora)
  • Prince v. Leesona Corp., Inc., 720 F.2d 1166 (10th Cir. 1983) (cross-jurisdictional saving statute acknowledged; supports application across states)
  • Goldsmith v. Learjet, Inc., 260 Kan. 176 (1996) (borrowing statute and saving statute interaction; liberally construed saving statute)
  • Taylor v. International Union of Electronic Workers, 25 Kan. App. 2d 671 (1998) (substantial similarity approach to 60-518 claims; liberal notice notion)
  • Waltrip v. Sidwell Corp., 234 Kan. 1059 (1984) (see above; foundational for class-action/potential member preservation under 60-518)
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Case Details

Case Name: Seaboard Corp. v. Marsh Inc.
Court Name: Supreme Court of Kansas
Date Published: Aug 31, 2012
Citations: 284 P.3d 314; 295 Kan. 384; No. 104,294
Docket Number: No. 104,294
Court Abbreviation: Kan.
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    Seaboard Corp. v. Marsh Inc., 284 P.3d 314