Lead Opinion
The sole issue for review on this appeal is whether the trial court properly granted defendants’ motion for summary judgment. As a preliminary matter, however, this case poses a choice of law dilemma. We must determine which statute of repose applies to this products liability action: that of North Carolina, the forum state, or that of Florida, the state where the injury occurred. We hold that the Florida statute of repose applies and that summary judgment was inappropriately entered on plaintiffs negligence and strict liability claims.
Plaintiff brought this action on 5 March 1985, naming as defendant in both an individual and a corрorate capacity the North Carolina designer of a chrome-plated, tub-style chair designated as model number 1183. The complaint alleged that plaintiff, a resident of Massachusetts, had injured his foot on the metal surface of the chair in question while visiting friends in Florida. Plaintiff claimed compensatory and punitive damages based on theories of negligent design, breach of implied warranty of merchantability, breach of implied warranty of fitness for a particular purpose, and strict liability for injecting an inherently dangerous product into the stream of commerce.
Defendants’ answer denied the material allеgations of the complaint and asserted defenses of, inter alia, contributory negligence, independent negligence of the chair’s manufacturer, accord and satisfaction, and lack of personal jurisdiction. On 24 June 1986, defendants moved for summary judgment. On 14 July 1986, defendants were permitted to amend their answer to include a further defense based on North Carolina statutes of repose. Thereafter the trial judge granted summary
Plaintiff contends that the applicable statute of repose is Florida Statutes § 95.031(2), which provides as follows:
Actions for products liability and frаud under s. 95.11(3) must be begun within the period prescribed in this chapter, with the period running from the time the facts giving rise to the cause of action were discovered or should have been discovered with the exercise of due diligence, instead of running from any date prescribed elsewhere in s. 95.11(3), but in any event within 12 years after the date of delivery of the completed product to its original purchaser or within 12 years after the date of the commission of the alleged fraud, regardless of the date the defect in the product or the fraud was or should have been discovered.1
(Emphasis added.)
Defendants, on the other hand, maintain that N.C.G.S. § 1-50(6) controls. Section 1-50(6) provides:
No action for the recovery of damages for personal injury, death or damage to property based upon or arising out of any alleged defect or any failure in relation to a product shall be brought more than six years after the date of initial purchase for use or consumption.
(Emphasis added.)
The record indicates that defendants sold the design for model number 1183 to Thayer-Coggin, Inc., a North Carolina furniture manufacturer, in 1967. Thayer-Coggin manufactured the chair and sold it to a furniture store in Florida, which in turn sold it to plaintiffs Floridian hosts on 26 January 1979. Plaintiffs injury occurred on 7 March 1982 and the complaint was filed on 5 March 1985. Applying these dates, plaintiff brought the action within the twelve-year periоd prescribed by the Florida statute but not within the six-year period prescribed by N.C.G.S. § 1-50(6). Defendants therefore contend that plaintiffs action is time-barred under North Carolina law.
Our choice of law analysis is somewhat complicated by the fact that plaintiff raises four distinct theories of recovery in four separate counts of the complaint. We first address plaintiffs claims of negligence and strict liability.
Our traditional conflict of laws rule is that matters affecting the substantial
This Court has consistently adhered to the lex loci rule in tort actions. Smith, Choice of Law in the United States, 38 Hastings L.J. 1041 (1987); Wurfel, Choice of Law Rules in North Carolina, 48 N.C.L. Rev. 243 (1970); see, e.g., Henry v. Henry,
We next consider the choice of law question with respect to plaintiffs breach of warranty claims. A warranty, express or implied, is contractual in nature. Wyatt v. Equipment Co.,
The Uniform Commercial Code is generally in accord with prior North Carolina law on the subject of warranties. See N.C.G.S., North Carolina Comment, introduction to art. 2, ch. 25 (1986). However, the Code provides its own choice of law rule, modifying the traditional place-of-contract-or-performance rule previously applied in this state. Bernick v. Jurden,
Our research reveals that some jurisdictions have interpreted the “appropriate relation” provision as requiring the application of forum law whenever the forum itself has significant contact with the case.
This approach comports with a very literal-minded reading of the Code, but such an interpretation is at best outmoded. The language of the Code’s choice of law provision was originally intended to encourage the application of forum law in those jurisdictions which had enacted the Code, thereby assuring that the Code would govern the transaction at issue when a non-Code jurisdiction was also involved. See Nordstrom & Ramerman, The Uniform Commercial Code and the Choice of Law, 1969 Duke L.J. 623; Weintraub, Choice of Law for Products Liability: The Impact of the Uniform Commercial Code and Recent Developments in Conflicts Analysis, 44 Tex. L. Rev. 1429 (1966). The drafters of the provision did not foresee the widespread enactment of the Code throughout the country. With all but one state having enacted the Code, a strictly forum-oriented choice of law rule is no longer necessary to ensure application of the Code in accordance with the intentions of the drafters. Id. Moreover, such an approach is likely to foster forum shopping. United Overseas Bank v. Veneers, Inc.,
Other jurisdictions interpret the appropriate relation test as an invitation for the forum state to use its standard choice of law rules. See Barclays Discount Bank Ltd. v. Bogharian Bros.,
Finally, many jurisdictions hold that the appropriate relation test is essentially the same as modern “interest analysis” or “grouping of contacts,” which requires the forum to determine which state has the most significant relationship to the case. See, e.g., Simmons v. American Mut. Liability Ins. Co.,
Applying this analysis to the case at bar, we find Florida — the place of sale,
Commentators have suggested that the law of the place of distribution should be supreme in products liability cases. Kozyris, Interest Analysis Facing Its Critics — And, Incidentаlly, What Should Be Done About Choice of Law for Products Liability?, 46 Ohio St. L.J. 569 (1985). This is particularly true with respect to breach of warranty claims. See Owens-Corning Fiberglas v. Sonic Dev. Corp.,
Cases holding that the state where the sale and/or injury took place had the most significant relationship to the products liability action include the following: Wayne v. Tennessee Valley Authority,
Having determined that the substantive law of Florida will apply to plaintiffs claims, we now consider whether the statutes of repose at issue are substantive or procedural in nature. The question of what is procedure and what is substance is determined by the law of the forum state. Williams v. Riley,
The term “statute of repose” is used to distinguish ordinary statutes of limitation from those that begin to run at a time unrelated to the traditional accrual of the cause of action. Bolick v. American Barmag Corp.,
Statutes of limitation are generally seen as running from the time of injury, or discovery of the injury in cases where that is difficult to detect. They serve to limit the time within which an action may be commenced after the causе of action has accrued. Statutes of repose, on the other hand, create time limitations which are not measured from the date of injury. These time limitations often run from defendant’s last act giving rise to the claim or from substantial completion of some service rendered by defendant.
Statutes such as N.C.G.S. § 1-50(6) and Florida Statutes § 95.031(2) have been denominated statutes of repose because they set a fixed limit after the time of the product’s manufacture, sale, or delivery beyond which a plaintiffs claim will not be recognized. Bolick v. American Barmag Corp.,
The distinction between statutes of limitation and statutes of repose corresponds to the distinction between procedural and substantive laws. Goad v. Celotex Corp.,
Ordinary statutes of limitation are clearly procedural, affecting only the remedy directly and not the right to recover. See Williams v. Thompson,
This characterization holds true in the context of choice of law. When commencement of an action within a specified period is a condition precedent to relief, “the limitation period is considered to be so tied up with the underlying right that for choice of law purposes, the limitation clause is trеated as a ‘substantive’ rule of law.” Chartener v. Rice,
The overwhelming weight of authority in other jurisdictions accepts the characterization of statutes of repose as substantive provisions in a choice of law context. See, e.g., Goad v. Celotex Corp.,
We hold that statutes of repose are treated as substantive provisions for choice of law purposes. This rule mandates the application of Florida’s statute of repose to plaintiffs claims.
In reaching the opposite conclusion, the Court of Appeals relied on a “public policy” exception. It is true we have held that foreign law or rights based thereon will not be given effect or enforced if opposed to the settled public policy of the forum. Davis v. Davis,
Having determined that the substantive law of Florida applies to plaintiffs claims and that plaintiffs action is not time-barred by the Florida statute of repose, we now turn to the question of whether plaintiff’s case would otherwise survive summary judgment.
The North Carolina Rules of Civil Procedure, which as lex fori govern the procedural aspects of the case, provide that summary judgment will be granted “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that any party is entitled to a judgment as a matter of law.” N.C.R. Civ. P. 56(c). By making a motion for summary judgment, a defendant may force a plaintiff to produce a forecast of evidence demonstrating that the plaintiff will be able to make out at least a prima facie case at trial. Dickens v. Puryear,
The record reveals that model number 1183 is a bent plywood swivel-tilt tub-chair designed by defendants in 1967. The chair has a chrome veneer about one-sixteenth of an inch thick which is bonded to its plywood shell. The base of the chair upon which the “tub” portion tilts and swivels is sоmewhat recessed; the diameter of the base is about two inches less than the diameter of the tub. The bottom of the tub is about three inches off the floor.
Milo Baughman, the individual defendant, testified in his deposition that the chair was designed for residential use and that it is a natural assumption that people walk barefoot in their homes. Nonetheless, he never anticipated that someone might put his foot in the area between the back of the chair and the floor. He was familiar with the use of clear plastic welts known as “edge guards.” These guards are used to protect the bottom edge of the metal on chrоme-trimmed furniture. Model number 1183 was not designed with an edge guard because it did not seem necessary. Although it was technically feasible, it would have been alien to the visual concept of the chair to have placed a wood trim, molding, or cloth welt around the edge of the chrome veneer. If the chair were manufactured with the chrome veneer extending beyond the plywood, it would create a surface that would cut bare skin. This would be a dangerous condition. Number 1183 was specifically designed so that the plywood and chrome would be flush. This was not noted on the design drawing because it is so obvious. The drawings do not include all details: “I don’t put in all the screws, I don’t put in the dowels, I don’t put in the mechanisms. ... I don’t specify things that are not my problems.
A designer’s role is to make a conceptual sketch, to provide a full-sized detail and working sketch, and to supervise the making of a model. The purpose of the supervision is to assure that the finished product looks right. The designer’s responsibilities are “aesthetic and not engineering.” The manufacturer’s inspectors occasionally “let something go through that isn’t exactly right.” In all factories some quality problems get through. Other than the present action, defendants have not received a single comрlaint of injury involving any of their furniture designs.
Julius Thayer Coggin, president of Thayer-Coggin, Inc., testified in his deposition that defendant Milo Baughman generally furnished Thayer-Coggin with a pencil sketch of the furniture design, as well as a working sketch which included the actual dimensions of the piece and specified the exterior material to be used. The chair in question was designed so that the veneer edge would be flush with the plywood and the edges of the veneer would be sanded down. Chrome veneer is sharp because it is thin. However, the chair was not designed to have sharp edges. A sharp edge is a manufacturing defect, not a design defect, and would bе the responsibility of Thayer-Coggin. Nothing prevented the placement of a protective welt along the bottom of number 1183. Plastic edge guards have been added to similar tub-chairs in the last few years.
Luther Ray Cooper, plant supervisor at Thayer-Coggin, testified in his deposition that the purpose of an edge guard is to protect the metal on furniture rather than to prevent injury. Model number 1183 was designed to have the edges flush and sanded, not to have sharp edges. There will always be “a little sharp edge any time you’re dealing with metal in this thickness.” A sharp edge is a manufacturing defect.
Plaintiff testified in his deposition that he cut his bare foot on the “outside bottom edge of the chair where the base meets the sides,” resulting in severe lacerations which required surgery and hospitalization. Plaintiff later examined the chair and determined that the edge was “razor sharp, sharp enough that if you were to rub your finger across the bottom outside edge of the chair, you would shave skin off your finger.” The chrome was flush with the plywood but the edge was sharp all the way around the 360 degrees of the tub.
We now consider whether the forecast of evidence, viewed in the light most favorable to plaintiff, raised genuine issues of material fact with respect to the elements of each claim as defined by Florida law.
Under Florida law, the elements of negligence are (1) the existence of a duty recognized by law requiring the defendant to conform to a certain standard of conduct for the protection of others, including the plaintiff; (2) a breach of that duty; and (3) injury sustained as a proximate cause of the breach. Tieder v. Little,
A designer is under a duty to use reasonable care to design a product that is reasonably safe for its intended use and for other uses which are reasonably foreseeable. Husky Industries v. Black,
Courts should be cautious in granting summary judgment in negligence
In the light most favorable to plaintiff, the record presents a genuine issue of material fact as to whether defendants breached the duty of reasonable care by specifying the use of chrome veneer, which is known to have a sharp edge, but failing to include some type of edge guard in the chair design.
The record also presents a genuine issue of material fact as to proximate cause. Defendants make much of the distinction between Resign defects and manufaсturing defects. A design defect is an injury-producing hazard accompanying normal use of a product that was intentionally manufactured according to design. Cassisi v. Maytag Co.,
Where both defendant and a third party are negligent but the third party’s negligence is the sole proximate cause of injury, plaintiff cannot recоver from defendant. De la Concha v. Pinero,
However, if an intervening cause is reasonably foreseeable, it cannot insulate a defendant from all liability. Rupp v. Bryant,
Prоximate cause is generally an issue for jury determination unless it is so clear that reasonable men could not differ. Helman v. Seaboard Coast Line R. Co.,
Similarly we find that the forecast of evidence was sufficient to raise jury questions on the elements of strict liability. A plaintiff seeking to hold a defendant strictly liable in a prоducts liability case must establish: (1) the defendant’s relationship to the product in question; (2) the defective condition of the product; and (3) the existence of a causal connection between the product’s condition and plaintiffs injuries. West v. Caterpillar Tractor Company,
Defendants reiterate many of the contentions previously considered and rejected with respect to the negligence claim. They also contend that plaintiff presented no evidence raising a reasonable inference that the chair was defective when it left the manufacturer. Defendants note their spotless record with respect to complaints of injury and theorize that any defect in the chair arose after many years of wear and tear.
We nonetheless find that the forecast of evidence was sufficient to support an inference in plaintiffs favor. Mere lapse of time between the purchase and the accident does not foreclose liability as a matter of law. Marrillia v. Lyn Craft Boat Company,
With respect to defendants’ affirmative defenses, we note that contributory negligence does not constitute a bar to strict liability or negligence actions in Florida, a comparative negligence state. Cassisi v. Maytag Co.,
Lastly we consider the breach of warranty claims. By creating the strict liability cause of action, the Florida Supreme Court in West v. Caterpillar Tractor Company,
Thus, we hold that summary judgment was properly granted for defendants as to plaintiffs claims for breach of implied warranty of merchantability and breach of implied warranty of fitness for a particular purpose but was inappropriate on plaintiffs claims for negligence and strict liability.
The result is: The decision of the Court of Appeals is affirmed for different reasons as to the claims for breach of implied warranty. As to the claims for negligence and strict liability, the decision of the Court of Appeals is reversed and the cause remanded to that court for remand to the Superior Court, Forsyth County, for further proceedings not inconsistent with this opinion.
Notes
. In response to confusion about its constitutionality, see Battilla v. Allis Chalmers Mfg. Co.,
. Defendants also contend that the action would be time-barred by N.C.G.S. § 1-52(16), which provides that causes of action for personal injury or property damage “shall not accrue until bodily harm to the claimant or physical damage to his property becomes apparent or ought reasonably to have become аpparent to the claimant, whichever event first occurs. Provided that no cause of action shall accrue more than 10 years from the last act or omission of the defendant giving rise to the cause of action.”
We need not consider the effect of the ten-year period prescribed by section 1-52(16). This section replaced N.C.G.S. § l-15(b) (repealed by 1979 N.C. Sess. Laws ch. 654, § 3, effective 1 October 1979) and its primary purpose appears to have been the adoption of the “discovery” rule. Black v. Littlejohn,
. Because we rule in plaintiffs favor as to the applicability of the Florida statute of repose, we need not address plaintiffs assignments of error regarding the amendment of defendants’ pleadings.
Dissenting Opinion
dissenting.
I dissent from the majority. In determining the choice of law for the application of the statute of repose, the majority relies on previous statements of this Court that stаtutes of repose are substantive definitions of rights. Lamb v. Wedgewood South Corp.,
Whatever differences we may find in statutes of limitation and statutes of repose, the purpose of both of them is to bar claims which are not filed within certain times. The majority has not said why there should be a different treatment of them because we call one statute substantive and the other procedural. I do not see why we should. The law of the forum applies when a statutе of limitations is pled. Sayer v. Henderson,
I agree with the opinion written by Judge Parker for the Court of Appeals. The majority says that the Court of Appeals in reaching its decision “relied on a ‘public policy’ exception.” The only time the Court of Appeals mentioned public policy was in quoting from an opinion of this Court, Tieffenbrun v. Flannery,
