CASEY, Appellant, v. MANSON CONSTRUCTION AND ENGINEERING COMPANY ET AL, Respondents.
Supreme Court of Oregon
Argued June 7, 1966, affirmed June 14, 1967
247 Or. 274 | 428 P. 2d 898
Ridgway K. Foley, Jr., Portland, argued the cause for respondents. With him on the brief were Mautz, Souther, Spaulding, Kinsey & Williamson.
Before MCALLISTER, Chief Justice, and PERRY, SLOAN, GOODWIN, HOLMAN, LUSK and HAMMOND,* Justices.
LUSK, J.
This is an action by a wife for the loss of her husband‘s consortium as the result of injury sustained by her husband through the alleged negligence of the defendants. The circuit court sustained a demurrer to the complaint based on the ground that the complaint showed that the accident in which the plaintiff‘s husband was injured occurred in the State of Washington where an action for loss of consortium by a wife or widow is not recognized. The plaintiff refused to plead further and judgment was entered for the defendants from which the plaintiff has appealed.
The complaint alleges the following facts: Plaintiff and her husband, Donald J. Casey, are and were at all pertinent times residents and inhabitants of Multnomah County, Oregon. The defendant Manson Construction and Engineering Company is a Washington corporation which has a registered agent for service in the State of Oregon and does business here and
Washington adheres to the common law rule which denies to the wife a right of action for loss of consortium resulting from a negligent injury to her husband: Ash v. S. S. Mullen, Inc., 43 Wash 2d 345, 261 P2d 118 (1953). In Oregon that right is conferred by statute:
This court has heretofore been committed to the traditional choice-of-law rule that in tort cases the law of the place of wrong—lex loci delicti—governs: Nadeau v. Power Plant Engr. Co., 216 Or 12, 20, 337 P2d 313 (1959). In Lilienthal v. Kaufman, 239 Or 1, 395 P2d 543 (1964), however, we abandoned the mechanical application of the corresponding rule in contract cases—lex loci contractus. We there said:
There is no need to decide that our previous statements that the law of the place of contract governs were in error. Our purpose is to state that this portion of our decision is not founded upon that principle because of our doubt that it is correct if the only connection of the state whose law would govern is that it was the place of making. 239 Or at 7.
The reasons given in Lilienthal to support the foregoing statement lead to the conclusion that lex loci delicti is no longer to be regarded as an article of faith in tort cases. This is not to say, of course, that the place of wrong has ceased to be a relevant circumstance; on the contrary, it may, in connection with other circumstances, be a decisive factor.
The cardinal virtue of the traditional rule was its certainty, ease of application, and predictability. Departure from that rule, where it has been departed from1—largely due to the labours and prolific writings of legal scholars—has left a difficult problem of formulating a rule to take its place. As Chief Judge Sobeloff observed in Lowe‘s North Wilkesboro Hdwre. v. Fidelity Mut. Life Ins. Co., 319 F2d 469, 473 (4th Cir 1963):
In failing to formulate the reasons for applying the law of a foreign forum, the North Carolina
* Did not participate in this decision.
court has not differed from other jurisdictions; and even in multi-state torts courts have with few exceptions merely chosen whatever rule seemed reasonable for the particular case under adjudication, without attempting to formulate the reasons for selecting that rule. Scholars and commentators have had little more success in providing guidelines for choosing the proper and just rule. Against every rule applied and every proposal made great clouds of criticism have been raised, and each commentator appears to have a different best solution for the difficulty. The applicable rules for a conflicts law of torts have constantly changed in the ceaseless search for a just and fair resolution of the problem.
And the opinion quotes, in a footnote, the following comment by one of the outstanding scholars in this field:
Despite the keen insight and illuminating analyses offered by some scholars, that appears to be the net effect of the rather large amount of recent learned writing in the field. After reading the articles, one understands the problem a great deal better, but he is no nearer to the answer unless he has been converted to one or another of the controversial views set out in them. Leflar Choice of Law: Torts: Current Trends, 6 Vand. L. Rev. 447, 457 (1953).
The attack upon the traditional rule has had its influence with The American Law Institute and has led to proposed modifications of its choice-of-law rules. See Lilienthal v. Kaufman, supra, 239 Or at 7. Section 379 of Tentative Draft No. 9, April 24, 1964, Second Restatement, Conflict of Laws, reads:
(1) The local law of the state which has the most significant relationship with the occurrence and with the parties determines their rights and liabilities in tort.
(2) Important contacts that the forum will consider in determining the state of most significant relationship include:
(a) the place where the injury occurred,
(b) the place where the conduct occurred,
(c) the domicil, nationality, place of incorporation and place of business of the parties, and
(d) the place where the relationship, if any, between the parties is centered.
(3) In determining the relative importance of the contacts, the forum will consider the issues, the character of the tort, and the relevant purposes of the tort rules of the interested states.
Although the proposed rule of the Restatement has not met with a large measure of approval by the scholars,2 it has been, to a greater or less extent, taken as a guide by a number of the courts. In some cases, however, courts have resorted to other theories in order to avoid what were deemed to be undesirable consequences flowing from application of lex loci delicti. Kilberg v. Northeast Airlines, Inc., 9 NY2d 34, 172 NE2d 526 (1961), is a prime example. Plaintiff administrator sued to recover damages for the wrongful death of a passenger on an airplane which crashed in Massachusetts. The decedent was a domiciliary of New York, where the journey commenced. Under New York law (written into its Constitution) there is no limit on the recoverable damages in a death action. The Massachusetts wrongful death statute limited recovery to $15,000. A divided court held that the measure of damages was a procedural or remedial question controlled by the law of New York. Beyond that, the opinion pointed out that in such a case the place of injury is entirely fortuitous and emphasized
We proceed to a review of other decisions in this area rendered over the past quarter of a century.
Where the question was one of immunity from suit because of interfamily relationship, the domicile of the parties was accorded controlling significance in Emery v. Emery, 45 Cal 2d 421, 289 P2d 218 (1955), and Haumschild v. Continental Casualty Co., 7 Wisc 2d 130, 95 NW2d 814 (1959). The question was said to be not of tort law but of capacity to sue and be sued. Somewhat similarly, a question of survivorship in an action for wrongful death was held to be governed by the law of the forum, which was also the state of the domicile of the parties: Grant v. McAuliffe, 41 Cal 2d 859, 264 P2d 944, 42 ALR2d 1162 (1953). Basically, the court said, the question is one of the administra-
Schmidt v. Driscoll Hotel, Inc., 249 Minn 376, 82 NW2d 365 (1957) involved a Minnesota statute which provided that if a person illegally sells intoxicating liquor to another, causing him to become intoxicated, the seller is liable for damages to one who is injured by the intoxicated person. The defendant sold liquor illegally in Minnesota and the plaintiff was injured in Wisconsin when an automobile in which he was a passenger and which was driven by the intoxicated person turned over. Wisconsin had no law similar to the Minnesota statute. All parties involved were residents of Minnesota. The court held that this was not an appropriate case for applying the traditional rule, since the interests of both states lay in the enforcement of the Minnesota statute—that of Wisconsin in affording whatever remedies it deems proper for those injured there as the result of foreign violations of liquor laws and that of Minnesota in admonishing a liquor dealer whose violation of its statutes was the cause of such injuries; and in providing for the injured party a remedy therefor * * * 249 Minn at 380.
Gordon v. Parker, 83 FS 40 (D Mass 1949) was an action for alienation of affections. The plaintiff and his wife were residents of Pennsylvania. The defendant was a resident of Massachusetts and it was there that the wrongful conduct took place and the wife‘s affections alienated. A Pennsylvania statute abolished all actions for alienation of affections. Massachusetts permitted such actions in modified form. The defendant, in contending that the law of Pennsylvania should be applied, argued that, since the asserted damage was inflicted on a marriage relationship, the question of
Babcock v. Jackson, 12 NY2d 473, 191 NE2d 279, 95 ALR2d 1 (1963) is generally regarded as the landmark case. Miss Babcock sued for injuries sustained when the automobile in which she was riding as a guest and which was driven by the defendant Jackson went out of control. The accident occurred in the Province of Ontario, Canada, in the course of a weekend trip from Rochester, New York. Miss Babcock and Jackson were New York residents. Under Ontario law a guest in an automobile has no right of recovery against the negligent host; New York allows recovery for ordinary negligence. The court, in an opinion by Judge Fuld, applied New York law, two judges dissenting. The
* * * Justice, fairness and ‘the best practical result’ (Swift & Co. v. Bankers Trust Co., 280 N. Y. 135, 141, supra) may best be achieved by giving controlling effect to the law of the jurisdiction which, because of its relationship or contact with the occurrence or the parties, has the greatest concern with the specific issue raised in the litigation. The merit of such a rule is that ‘it gives to the place “having the most interest in the problem” paramount control over the legal issues arising out of a particular factual context’ and thereby allows the forum to apply ‘the policy of the jurisdiction “most intimately concerned with the outcome of [the] particular litigation.“’ (Auten v. Auten, 308 N. Y. 155, 161, supra.) 12 NY2d at 481-482.
The court said that this was the approach adopted in the Tentative Draft of the Restatement, above referred to, and continued:
Comparison of the relative ‘contacts’ and ‘interests’ of New York and Ontario in this litigation, vis-a-vis the issue here presented, makes it clear that the concern of New York is unquestionably the greater and more direct and that the interest of Ontario is at best minimal. The present action involves injuries sustained by a New York guest as the result of the negligence of a New York host in the operation of an automobile, garaged, licensed and undoubtedly insured in New York, in the course of a weekend journey which began and was to end there. In sharp contrast, Ontario‘s sole relationship with the occurrence is the purely adventitious circumstance that the accident occurred there. 12 NY2d at 482.4
It should be noted that Judge Fuld, dissenting in
Nor is my conclusion as to the superiority of New York‘s claim for the application of its law in this case in any way grounded—as suggested in the majority opinion (p. 124)—on a ‘quantitative’ assessment of the contacts of the respective jurisdictions, or on the decisive effect of any single such factor as domicile or the public policy of this State. Rather, the essential inquiry, is, and has been, to determine whether it is Colorado or New York which has ‘the greatest concern with the specific issue raised in the litigation.’ (Babcock v. Jackson, 12 N Y 2d 473, 481, supra.) * * * 16 NY2d at 133-134.
One of the reasons emphasized in the Babcock case for finding that the specific issue concerned Ontario very little lay in the object of Ontario‘s guest statute—to prevent fraudulent collusive claims by passengers against insurance companies. Whether New York defendants the court said are imposed upon or their insurers defrauded by a New York plaintiff is scarcely a valid legislative concern of Ontario simply because the accident occurred there, any more so than if the accident had happened in some other jurisdiction: 12 NY2d at 483.
Similar decisions in cases involving automobile guest statutes are Clark v. Clark, 107 NH 351, 222 A2d 205 (1966) (cf. Dow v. Larrabee, 107 NH 70, 217 A2d 506 (1966)); Wilcox v. Wilcox, 26 Wisc 2d 617, 133 NW2d 408 (1965); and Macey v. Rozbicki, 18 NY2d 289, 221 NE2d 380 (1966). No review of the New York cases would be complete, however, without noticing Dym v. Gordon, supra. This decision came between Babcock and Macey. It involved a guest statute of
Following the Kilberg precedent (though not all its reasoning), the courts have applied the law of the forum in favor of the forum‘s domiciliaries in several other death cases arising out of airplane accidents: Gore v. Northeast Airlines, Inc., 373 F2d 717 (2d Cir 1967) (this case grew out of the same airplane crash as in Kilberg and the court applied New York conflict
Lowe‘s North Wilkesboro Hdwre. v. Fidelity Mut. Life Ins. Co., supra, was an action by a North Carolina corporation, commenced in a North Carolina Federal Court, against an insurance company with its principal office in Pennsylvania, to recover damages for negligent delay in acting upon an application for a policy of life insurance upon the life of the plaintiff‘s president. Before the policy could be issued the president of the corporation died. Pennsylvania did not recog-
We conclude our review of the decisions with a reference to Watts v. Pioneer Corn Company, 342 F2d 617 (7th Cir 1965), a death action arising out of the collision of automobiles in Illinois in which a Federal Court in Indiana applied the law of that state which did not authorize such an action unless the deceased left dependents. The deceased left no dependents. Under Illinois law the action could have been maintained. All the parties were residents of Indiana. The court reasoned that the Indiana requirement of dependents would be circumvented by the fortuitous occurrence of the accident in Illinois and that Illinois does not have a sufficiently substantial interest in the recovery of damages by Indiana beneficiaries from Indiana defendants: 342 F2d at 620.
Careful consideration of these decisions, as well as of the extensive writings on the subject, persuade us that we should adopt for tort actions the rule of most significant relationship with the occurrence and
Application of that rule to the facts of this case is fraught with difficulty. The court in Clark v. Clark, supra, observed that [t]his case is a comparatively easy one: 222 A2d at 210. It was so indeed, for the only connection of Vermont, the foreign state, with the issue was that the accident occurred there in the course of a motor trip from one town in New Hampshire to another. It cannot be said, however, that we are dealing here with an easy case. It differs in important particulars from any of those which we have examined in which the courts have refused to apply the law of the place of the wrong. There was nothing fortuitous here about the place of the accident;6 it could not have happened anywhere except on the negligently constructed and maintained road in the State of Washington. See Tramontana v. S. A. Empresa De Viacao Aerea Rio Grandense, supra, 350 F2d at 472. Again, this is not an action between residents of Oregon, but is brought by an Oregon domiciliary against two Washington corporations. Both defendants, it is true, are licensed to transact business in Oregon and one of them does so, though we are not advised as to the extent of that business, but the only business of these defendants having any connection with this case was the construction of a hydroelectric dam in Washington and, as incident thereto, the building and maintenance of the access road where the accident occurred. By con-
In all these cases, moreover, there were potent reasons for finding that the foreign state had either no conceivable interest: Babcock v. Jackson, supra, 12 NY2d at 482, or relatively little interest: Griffith v. United Air Lines, Inc., supra, 416 Pa at 23, in the resolution of a dispute in the forum state between its residents as to whether the law of the foreign state should govern.
And, of course, the issue here cannot be disposed of by characterizing it as something other than one of substantive tort law as in Grant v. McAuliffe, supra, and like instances. Concerning such cases, it has been said that there is no real conflict of laws: Traynor, Is This Conflict Really Necessary? 37 Texas L. Rev. 657, 669, 670. Here we have unavoidable conflict.
As to the underlying policies involved and the interests of the respective states, it is to be presumed that the Oregon Legislature deemed it desirable that an anachronistic common law rule,7 Prosser on Torts (3d
Washington‘s policy is in one aspect rather negative than affirmative. Her highest court announced
Section 379a of the Tentative Draft of the Restatement, April 24, 1964, reads:
In an action for a personal injury, the local law of the state where the injury occurred determines the rights and liabilities of the parties, unless some other state has a more significant relationship with the occurrence and the parties as to the particular issue involved, in which event the local law of the latter state will govern.
Elaborating on this rule in Comment f under Section 379a it is said:
The state where the conduct occurred is most likely to be the state of most significant relationship when these two elements are combined, that is to say, when, in addition to the injured person‘s being domiciled or residing or doing business in the state, the injury occurred in the course of an activity or of a relationship which is centered there.
One example is where the injury occurred in the course of an employment which is centered in the state where the conduct took place and where the injured person is domiciled. (Italics added.)
Section 380a of the Tentative Draft of the Restatement reads:
The law selected by application of the rule of § 379 determines whether the interest affected is entitled to legal protection.
Although, for the purpose of determining a question of estoppel by judgment the right of action for loss of consortium is not considered derivative, but, independent, Wolff v. DuPuis, 233 Or 317, 378 P2d 707 (1963), yet it cannot be disputed that it is in fact derivative, for it arises only as the result of injury to the other spouse; and so it is held that in such actions the place of the conduct, not of the marital domicile, is the place of the injury: Jordan v. States Marine Corporation of Delaware, 257 F2d 232 (9th Cir 1958); Thevenot v. Sieber, 204 FS 15 (SD NY 1962); McVickers v. Chesapeake and Ohio Railway Company, 194 FS 848 (ED Mich 1961); Conway v. Ogier, 115 Ohio App 251, 184 NE2d 681 (1961).
Accordingly, in Comment a under Section 380a, the authors of the Restatement say: Likewise, when a spouse suffers personal injury the law selected by application of the rule of Section 379 [the most significant relationship rule] should determine whether the other spouse may recover for loss of consortium, namely for the loss of the injured spouse‘s companionship, services and conjugal affection.
While consideration should be given, we assume, to the interest of Oregon arising from the fact that the effects of the injury are experienced by the plaintiff in this state, we, nevertheless, have a case in which
We conclude that Washington has the most significant relationship with the occurrence and with the parties and that Washington‘s law should govern the issue presented by the demurrer to the complaint. We think that none of the recent decisions refusing to apply the law of the state of the injury to the particular circumstances of those cases can be cited as authority for a different result, and that our decision finds support in such cases as Tramontana v. S. A. Empresa De Viacao Aerea Rio Grandense; Ciprari v. Servicos Aereos Cruzeiro; Lowe‘s North Wilkesboro Hdwre. v. Fidelity Mut. Life Ins. Co.; Watts v. Pioneer Corn Company, all supra.
The view has been expressed, though not, so far as we are aware, by any court, that if both the forum state and the foreign state have legitimate interests in the application of their laws the court should apply the law of the forum: Currie, Selected Essays on the Conflict of Laws, 189. That, it would seem, is the policy expressed in the Uniform Commercial Code with respect to transactions controlled by that enactment:
In developing the body of rules governing choice of law problems, the ideal in view is the recognition, by common consent of the states and nations having civilized systems of law, of a proper substantive law of the transaction at hand, to be uniformly applied regardless of the forum in which the litigation happens to be instituted. No doubt this ideal cannot be fully realized without the aid of international convention. But measurable advances have been made; and further progress to that end is possible if courts would not be too predisposed to apply the law of the forum with which they are of course most familiar, instead of candidly examining to see whether the transaction as a whole, in its more important aspects, is not centered in some other jurisdiction, whose law would therefore more appropriately be selected as the applicable law.
The judgment is affirmed.
HOLMAN, J., concurring.
After consideration of all the circumstances and the situation as a whole, it seems more logical to apply the law of the State of Washington. If it were otherwise, Washington citizens carrying on activities in Washington would have to lift their financial protection to an unaccustomed level and one which would be dependent upon the locality from which the injured
At this time I am doubtful that I desire to be finally wedded to the methods of the second restatement as set forth in the majority opinion.
GOODWIN, J., concurs in this opinion.
LUSK, J.
