Baughn v. Eli Lilly and Co.Baughn v. Eli Lilly and Co.
MEMORANDUM AND ORDER
Barbara and Derek Baughn filed this product liability action against Eli Lilly and Company. Plaintiffs allege that Barbara Baughn suffered injuries because her mother took diethylstilbestrol (“DES”), a prescription drug, during her pregnancy with Barbara in 1964 and 1965. This matter is before the Court on Defendant Eli Lilly And Company’s Renewed Motion For Summary Judgment On Statute Of Repose Grounds (Doc. # 55) filed November 12, 2004. For reasons stated below, defendant’s motion is overruled.
Summary Judgment Standards
Summary judgment is appropriate if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.
See
Fed.R.Civ.P. 56(c);
accord Anderson v. Liberty Lobby, Inc., 477
The moving party bears the initial burden of showing the absence of any genuine issue of material fact.
Celotex Corp. v. Catrett,
“[W]e must view the record in a light most favorable to the parties opposing the motion for summary judgment.”
Deepwater Invs., Ltd. v. Jackson Hole Ski Corp.,
Factual Background
The following facts are uncontroverted, deemed admitted or, where disputed, viewed in the light most favorable to plaintiffs.
Barbara Baughn, who was born on August 19, 1965 in Chanute, Kansas, has lived in Kansas her entire life. Barbara’s mother also lived in Kansas, where she purchased and took DES during her pregnancy with Barbara. Barbara claims that as a result of her exposure to DES in útero, she suffered pregnancy complications, pregnancy losses and infertility for which she sought medical treatment in Kansas. Barbara did not learn of her claim against defendant until late 2001. On May 8, 2003, Barbara and Derek Baughn, her husband, filed suit against Eli Lilly in the United States District Court for the District of Columbia. On November 7, 2003, pursuant to 28 U.S.C. § 1404(a), that court transferred its case to this Court.
Analysis
I. Choice Of Law
Where a case is transferred for the convenience of parties and witnesses under Section 1404(a), the transferee court must follow the choice of law rules of the transferor court.
Viernow v. Euripides Dev. Corp.,
The parties and the Court agree that Kansas substantive law applies in this case.
1
The Court must address, however, whether under District of Columbia choice of law principles, the relevant Kansas statute — K.S.A. § 60-513(b) — is substantive or procedural. To answer this question, the Court must initially determine whether to apply Kansas or District of Columbia law. District of Columbia courts have not directly addressed this question, but they have consistently followed other states’ interpretations as to whether their own statutes which contain periods of limitations are substantive or procedural.
See Huang v. D’Albora,
II. K.S.A. § 60-513(b) As Substantive Law
The Kansas Supreme Court has held that the ten-year provision in Section 60-513(b) is a statute of repose and, as such, substantive law.
See Harding v. K.C. Wall Prods., Inc.,
A statute of limitations extinguishes the right to prosecute an accrued cause of action after a period of time. It cuts off the remedy. It is remedial and procedural. A statute of repose limits the time during which a cause of action can arise and usually runs from an act of a defendant. It abolishes the cause of action after the passage of time even though the cause of action may not have yet accrued. It is substantive.
Id.
at 668,
III. Kansas Product Liability Act
Defendant argues that it is entitled to summary judgment because the general ten-year statute of repose in Section 60-513(b) has extinguished plaintiffs’ cause of action. Plaintiffs argue that their claim is not governed by Section 60 — 513(b), but by the Kansas Products Liability Act (“KPLA”) and K.S.A § 60-3303, the statute of repose and exceptions which are set forth therein. Defendant argues that the Court should apply the general ten-year statute of repose which provides in relevant part as follows:
[I]f the fact of injury is not reasonably ascertainable until some time after the initial act, then the period of limitation shall not commence until the fact of injury becomes reasonably ascertainable to the injured party, but in no event shall an action be commenced more than 10 years beyond the time of the act giving rise to the cause of action.
K.S.A. § 60 — 513(b) (emphasis added). Plaintiffs concede that the ten-year statute of repose would bar their claim but argue that they fall within exceptions to the statute of repose in Section 60-3303.
Section 60-3303 holds that a product liability cause of action can arise only during the “useful safe life” of the product. Under the statute, a product seller is not liable if it proves by a preponderance of the evidence that the product caused harm after the product’s “useful safe life” has expired. The “useful safe life” begins at the time of delivery and extends for the time during which the product would normally be likely to be used in a safe manner. For harm which is caused more than ten years after delivery, Section 60-3303(b)(1) creates a presumption that the harm was caused after expiration of the useful safe life of the product. This presumption may only be rebutted by clear and ■ convincing evidence. K.S.A. § 60-3303(b)(1).
The KPLA provides certain exceptions for injuries that are not discoverable until after the presumptive ten year useful safe life has expired. Section 3303(b)(2)(D) provides that the ten-year period does not apply
if the harm was caused by prolonged exposure to a defective product, or if the injury-causing aspect of the product that existed at the time of delivery was not discoverable by a reasonably prudent person until more than 10 years after the time of delivery, or if the harm caused within 10 years after the time of delivery, did not manifest itself until after that time.
K.S.A. § 60-3303(b)(2)(D).
Defendant concedes that in product liability cases, a period of repose longer than ten years may apply under the KPLA burden shifting useful safe life provision.
5
Plaintiffs argue that all three exceptions in Section 3303(b)(2)(D) apply. If her injury meets any one of the exceptions, however, the ten-year statute of repose does not bar plaintiffs’ claim.
Koch,
Plaintiffs have also established a genuine issue of material fact as to the
IV. Takings Defense
As explained above, Kansas adopted'the KPLA in 1981, and plaintiffs have established a genuine issue of material fact as to at least two of the exceptions to the ten-year statute of repose in Section 60-3303(b). Defendant argues that if the KPLA applies, application of the statute constitutes an unlawful taking of its vested right in the statute of repose defense. As noted, the Kansas Supreme Court has held that the ten-year provision in Section 60-513(b) is a statute of repose and as such, it is substantive law.
See Harding,
Plaintiffs argue that Eli Lilly did not obtain a vested right in the statute of repose defense before Kansas enacted the KPLA in 1981 because the Kansas Supreme Court had held that the ten-year period in Section 60 — 513(b) was not triggered until an individual suffered substantial ascertainable injury. See Plaintiffs’ Amended Response (Doc. # 58) at 23-24. Plaintiffs reason that Barbara Baughn’s injuries were not reasonably ascertainable until late 2001, and that defendant therefore did not obtain a vested right before 1981. In support, plaintiffs rely primarily on Ruthrauff, supra.-
When Ruthrauff was decided in 1974, Section 60-513 provided a two:year statute of limitations for personal injury actions. The statute also provided as follows:
The cause of action in this section shall not be deemed to have accrued until the act giving rise to the cause of action first causes substantial injury, or, if the fact of injury is not reasonably ascertainable until some time after the initial act, then the period of limitation shall not commence until the fact of the injury becomes reasonably ascertainable to the injured party; but in no event shall the period be extended more than ten (10) years beyond the time of the act giving rise to the cause of action.
K.S.A. § 60-513(b) (Supp.1970) (emphasis added).
8
Ruthrauff
held that the final clause' — which contained the ten-year lim
In
Tomlinson v. Celotex Corp.,
Two years later, the Kansas Supreme Court overruled
Tomlinson. See Gilger v. Lee Constr., Inc.,
when an act occurs which later causes substantial injury, both the two-year and ten-year periods of limitation are triggered at the time of substantial injury, unless the facts of such injury are not ascertainable until later, in which case the two-year statute of limitations begins at the later date. But ,in no event, under K.S.A. § 60 — 513(b), shall the period of limitations extend beyond ten years from the date of substantial injury.
Gilger,
Gilger
is puzzling in light of express statutory language which states that “but in no event shall the period be extended more than ten (10) years beyond the time of the act giving rise to the cause of action.” K.S.A. § 60-513(b).
Gilger
essentially equated the final phrase in Section 60-513(b) — “the act giving rise to the cause of action” — with “substantial ascertainable injury.” Under this interpretation, the ten-year, limitation would be meaningless in virtually all cases because the two-year statute of limitations under Section 60-513(a) would ordinarily be triggered when the injury was reasonably ascertainable.
Gilger
apparently leaves open one narrow situation where the ten-year limitation in Section 60-513(b) applies,
ie.
where substantial ascertainable injury occurs but its
cause
is not ascertainable until more than ten years later.
See Gilger,
Although the Gilger court stated that it was relying on its rule in Ruthrauff ...,it appears that, in fact, the Gilger court changed the Ruthrauff rule. In effect, the Gilger court interpreted the “act giving rise to the cause of action” ... to mean the date on which the plaintiff ascertained substantial injury. This differs from what this court believes was the Ruthrauff interpretation, which was that the limitation period began running on the date substantial injury occurred to a plaintiff as a result of a defendant’s act. The Gilger decision almost completely emasculated the ten-year limitations period of K.S.A. 60 — 513(b). The ten-year limitations provision would not begin to run under Gilger until a plaintiff “suspected” an injury, giving a plaintiff ten years from that date to ascertain the injury and file an action.
Speer v. Wheelabrator Corp.,
The adult plaintiffs in Gilger were given the benefit of the discovery rule but were not held to the concomitant requirement to sue within a decade of the wrongful act, contrary to the requirements of Ruthrauff. This result was achieved by reinterpreting the statute to calculate the outside limitation from the date of first injury rather than the date of the wrongful act. The court plainly did not really desire to apply the rule of Ruthrauff. It wanted to find a way to give the plaintiffs the benefit of the discovery rule without the burden of the ten-year outside limitation. The only way to do so was to reunite delayed injury claims with delayed accident claims, and to make both types exempt from the outside limitation. This result simply cannot be accomplished consistently with the Ruthrauff court’s division of section 60-513 into two alternatives.
Steve R. Fabert, Statutes Of Limitations, Statutes Of Repose And Continuing Duties Under The Kansas Product Liability Act, 36 Washburn L.J. 367, 405 (1997). The Court agrees substantially with these criticisms of Gilger.
In summary, the Court is faced with inconsistent Kansas Supreme Court decisions:
Gilger
and
Ruthrauff.
Neither case has been overruled and both cases remain “good law” as to the version of Section 60-513 which was in effect from 1974 through 1987. To the extent the two cases conflict, however, the Court is bound to follow
Gilger,
the most recent case.
See Nevins v. Shepard,
IT IS THEREFORE ORDERED that Defendant Eli Lilly And Company’s Renewed Motion For Summary Judgment On Statute Of Repose Grounds (Doc. # 55) filed November 12, 2004 be and hereby is OVERRULED.
Notes
. Under District of Columbia choice of law principles, the Court looks to the factors in the Restatement (Second) of Conflict of Laws § 145, which include the place where the injury took place; the place where 'the conduct causing the injury occurred; the domicile, residence, nationality, place of business and place of incorporation of the parties; and the place where the parties' relationship is centered.
See Ingram v. Eli Lilly & Co.,
.
For choice of law purposes, other courts have applied their own law to determine whether a limitations statute of another state is procedural or substantive.
See Baxter v. Sturm. Ruger & Co., Inc.,
Although District of Columbia courts follow Section 145 of the Restatement (Second) Of Conflict Of Laws, they have not adopted Section 143. Section 143 states that “an action will not be entertained in another state if it is barred in the state of the otherwise applicable law by a statute of limitations which bars the right and not merely the remedy.” Comment b to Section 143 provides:
Application of the rule of this Section depends upon the local law of the forum. It is for the courts of each state to determine the circumstances in which the rule is applicable. So the forum will determine in accordance with its own conceptions whether a statute of limitations of a second state bars the right and not merely the remedy (see § 7).
(emphasis added).
. The Kansas Supreme Court has recently retreated' — to some degree — from a bright-line distinction between statutes of limitations and statutes of repose. In
See v. Hartley,
While there are differences between statutes of limitation and statutes of repose, those differences are not as clearly defined as ... Harding ... might indicate. Both types of statutes constitute time limitations on the plaintiff's right to recover for damages received as a result of the defendant's action or inaction. Thus, in the broader sense, a statute of repose constitutes one type or form of a statute of limitations. Both types of statutes seek the same objective and are founded on the same basic philosophy.
Id.
at 820,
. For purposes of defendant's motion for summary judgment, the Court assumes that it looks at whether Kansas courts treat the current version of Section 60-513(b) as substantive or procedural, not the version which was in effect when defendant alleges that its rights in the statute vested,
i.e.
1975. No Kansas court has directly addressed whether the ten-year period in the 1975 version of Section 60-513(b) was a statute of repose or a statute of limitations. Indirectly, the Kansas Supreme Court has reached conflicting conclusions on that question. In
Gilger v. Lee Constr., Inc.,
Before 1992, the Kansas Supreme Court had not distinguished statutes of limitations from statutes of repose.
See Harding,
. Kansas cases now make clear that in product liability actions the KPLA "useful safe life” provision, K.S.A. § 60-3303(a), conflicts with and controls over the general ten-year statute of repose in § 60-513(b).
Dierksen v. Navistar Int’l Trans. Corp.,
. In an article which discusses Section 3303, which defendant cites in the memorandum in support of its motion for summary judgment, the author specifically references consumable products such as fresh meat and milk which have "very short useful safe lives.” Steve R. Fabert, Statutes Of Limitations, Statutes Of Repose And Continuing Duties Under The Kansas Product Liability Act, 36 Washburn L.J. 367, 392 (1997). The author does not opine that consumable products such as food and medicine cannot be analyzed under the useful safe life provision of Section 3303.
. Because plaintiffs have established genuine issues of material fact as to two of the exceptions in Section 60-3303(b)(2)(D), the Court need not address whether plaintiff can satisfy the latent disease exception in Section 60-3303(d)(2).
. Technically, in 1974, Section 60-513 did not include lettered subsections. The Court refers to the paragraph in the statute which corresponds to current subsection (b). In 1976, Section 60-513 was amended to add lettered subsections. In addition, subsection (c) was added to change the discovery period in actions brought against health care providers from ten years to four years. The relevant text of subsection (b) remained unchanged.
In 1987, the last clause of Section 60-513(b) was amended to read “but in no event shall an action be commenced more than 10 years beyond the time of the act giving rise to the cause of action.” 1987 Kan. Sess. Laws Ch. 222; K.S.A. § 60-513(b). The 1987 ver-
.
See, e.g., Gilger,
. Eli Lilly does not attempt to distinguish
Gilger.
It maintains that defendant’s wrongful act, not the date of substantial ascertainable injury, triggers the ten-year period in Section 60-513(b).
See Defendant’s Memorandum In Support
(Doc. # 54) at 8 (citing
Admire Bank,
. This holding does not foreclose proof at trial that Barbara Baughn's exposure to DES caused substantial ascertainable injury before she experienced fertility problems at the age of 36.