Jean L. LEBEGERN, Administratrix Ad Prosequendum and Administratrix for the Estate of Daniel L. Carson, Deceased; Janet Golonka; Insurance Company
v.
Glenn FORMAN, Individually and t/a Forman's Auto Body a/k/a Foreman's Auto, a/k/a Forman's Collision Center a/k/a Forman's Service Center; Stephen J. Cracker; Michael J. Weiss, an Adult Individual, Individually and t/a Mike's Truck Center and Good Time Cycles; Kenneth W. Albert, t/a Good Time Cycles
Jean L. Lebegern, Appellant.
No. 05-1992.
United States Court of Appeals, Third Circuit.
Argued January 12, 2006.
Opinion Filed December 18, 2006.
COPYRIGHT MATERIAL OMITTED Michael T. Sellers, Esquire (Argued), Marc I. Rickles, Esquire, Kardos, Rickles, Sellers & Hand, Newtown, PA, Counsel for Appellant.
Ian M. Sirota, Esquire (Argued), Margolis Edelstein, Westmont, NJ, Counsel for Appellees Glen Forman, Forman's Auto Body, a/k/a Forman's Auto, a/k/a Forman's Collision Center a/k/a Forman's Service Center.
Bonnie L. Laube, Esquire (Argued), Greenblatt & Laube, Esquire, Vineland, NJ, Thomas M. Marrone, Esquire, Feldman, Shepherd, Wohlgelernter, Tanner & Weinstock, Philadelphia, PA, Counsel for Appellee Stephen J. Cracker.
Gary A. DeVito, Esquire, Zarwin, Baum, DeVito, Kaplan, Schaer & Toddy, Philadelphia, PA, Counsel for Amicus-Curia.
Before: FUENTES, ROSENN* and ROTH**, Circuit Judges.
OPINION
ROTH, Circuit Judge.
We granted an interlocutory appeal to resolve a choice of law issue under New Jersey choice of law principles. We must determine whether the measure of damages in a survival action on behalf of a Pennsylvania decedent, arising from a motor vehicle accident in New Jersey allegedly caused by the negligence of a New Jersey driver, is governed by New Jersey or Pennsylvania law. The District Court concluded that New Jersey law governed but stayed the case pending an interlocutory appeal. We will affirm the District Court's application of New Jersey law and will remand this case for further proceedings consistent with this opinion.
I. Factual Background and Procedural History
On September 16, 2001, Daniel L. Carson was driving his vehicle on Route 30, White Horse Pike, in Mullica Township, New Jersey. Carson was accompanied by his fiancee, Janet Golanka. Carson and Golanka lived in Bucks County, Pennsylvania, and drove to New Jersey for a shopping trip. During their journey, a vehicle driven by Stephen J. Cracker crossed the center line and hit the vehicle driven by Carson. Carson was killed and Golonka sustained serious injuries.
Jean L. Lebegern is Carson's mother and the personal representative of his estate. She brought survival and wrongful death actions in federal district court in New Jersey against Cracker, Glenn Forman, Michael Weiss, Kenneth Albert, and Good Time Cycles. Forman is a licensed New Jersey car dealer alleged to have been the owner of the vehicle operated by Cracker. Forman purchased the vehicle from Weiss, who was purportedly acting at the behest of Albert and/or Good Times Cycles. All of the defendants were residents of New Jersey at the time of the accident.
Count II of Lebegern's Amended Complaint is a claim under the Pennsylvania Survival Act. Cracker filed a motion to dismiss Count II on the ground that the New Jersey Survival Act, not the Pennsylvania Survival Act, applies here. Lebegern filed a cross motion for summary judgment asking the District Court to find that Pennsylvania law governs the survival claim. The District Court granted Cracker's motion to dismiss, finding that New Jersey law does apply.1
The reason for the dispute over choice of law is that the New Jersey Survival Act allows recovery only for the decedent's pain and suffering, while the Pennsylvania Survival Act also provides for recovery of net earning capacity. Compare N.J. STAT. ANN. § 2A:15-3 with 20 PA. CONS.STAT. ANN. § 3371 and 42 PA. CONS.STAT. ANN. § 8302; Skoda v. W. Penn Power Co.,
II. Jurisdiction and Standard of Review
Lebegern filed her Petition for Leave to Appeal from an Interlocutory Order on February 3, 2005, pursuant to 28 U.S.C. § 1292(b). On March 23, 2005, we granted leave to appeal.
The District Court had diversity jurisdiction under 28 U.S.C. § 1332. We have jurisdiction under 28 U.S.C. § 1292(a)(1). United States v. Acorn Tech. Fund, L.P.,
III. Discussion
A. General Choice of Law Principles in New Jersey
New Jersey has a flexible governmental-interest approach to resolving choice of law questions that "requires application of the law of the state with the greatest interest in resolving the particular issue...." Gantes v. Kason Corp.,
The governmental-interest test consists of two prongs. First, we must determine whether there is an actual conflict. Gantes,
New Jersey has articulated five broad factors to aid courts in applying the governmental-interest test. Erny,
In addition to these general considerations, four contacts are most relevant to the governmental-interest test in cases based on an alleged tort: (1) the place where the injury occurred, (2) the place where the conduct causing the injury occurred, (3) the domicile, residence, nationality, place of incorporation, and place of business of the parties, and (4) the place where the relationship, if any, between the parties is centered. Fu,
In personal injury cases, the place of the injury is important, and when both the conduct and the injury occur in the same place, that jurisdiction's law generally will apply except in those rare instances where another jurisdiction has a demonstrably dominant interest and no policy of the situs state is frustrated by application of the sister state's policy.
Erny,
B. Applying New Jersey's Choice of Law Principles
1. Actual Conflict
Under New Jersey choice of law principles, we must first establish whether there is an actual conflict. We agree with the District Court that there is. The New Jersey Survival Act would allow Lebegern to recover only for Carson's pain and suffering from the time of alleged negligence until death. N.J. STAT. ANN. § 2A:15-3.3 Pollock v. Barrickman,
Our review of the jurisprudence in this area has uncovered a misconception by some courts of the proper way to conduct an analysis of whether there is an actual conflict of law under this two pronged approach. What some courts have described as a "false conflict" is the result of a policy analysis to determine which state has the more significant interest in applying its law, which precedes the examination of whether there is an actual conflict in the application of the laws. The better approach is to determine whether there is a conflict by examining the substance of the laws before assessing whether the states' interests are actually furthered by application of the potentially applicable doctrines. "[T]he initial step in choice-of-law questions is a determination of whether there is a distinction in the laws of particular jurisdictions." Grossman v. Club Med Sales, Inc.,
In Grossman, the New Jersey Superior Court reversed a trial court's choice of law determination after the Superior Court concluded that there was no conflict between the laws of the potentially interested jurisdictions. Id. The court conducted its analysis by examining the substance of the potentially applicable laws to assess whether they mandated different outcomes. Id. at 1197-98. Similarly, first in Gantes and later in Erny, the New Jersey Supreme Court looked first to the substance of potentially applicable laws to conclude that actual conflict existed. In Gantes, the question was whether the Georgia or New Jersey statute of limitations law should apply.
The district courts in our Circuit are split in their determination of the choice of law issue in survival actions, as we have here. An examination of case law indicates, however, that the significant factor in the disagreement is the point in the analysis at which the court considers whether or not there is a conflict in the states' interests. The cases, which have considered the second prong of the New Jersey test (the state interest) before the first (the existence of an actual conflict in the application of the laws) have found at the outset no conflict of state interests. On this basis, they have applied the Pennsylvania Survival Act. In Pollock,
As the above discussion of New Jersey precedent shows, this formulation is technically inaccurate. While the District Court in Pollock was certainly within its purview to reach the issue of state interest, the determination of whether or not there is a conflict of states' interests is properly understood as being a second-prong issue. Grossman,
On the other hand, the district courts to hold that New Jersey law applied found a conflict in the respective Survival Acts and then a conflict in state interests. Capone v. Nadig,
Because New Jersey and Pennsylvania survival laws differ on the scope of damages, there is a true conflict between the laws of each potentially interested jurisdiction. This, however, is only the first prong of the inquiry. It triggers the second part of the governmental-interest test, the determination of the policies underlying each state's laws and whether those policies are implicated by applying the relevant state's law to the particular issue. Erny,
2. Resolving the Conflict: Finding the More Interested State
Determining which state has the greater interest involves looking at each state's contacts to the litigation and assessing the policies behind each state's law. Id. at 1216. To facilitate this analysis, we can summarize the most relevant contacts as follows:
(1) Place where the injury occurred: New Jersey
(2) Place where the conduct causing the injury occurred: New Jersey
(3) Domicile and residence of the parties:
(a) Plaintiff: Pennsylvania
(b) Defendants: New Jersey
As mentioned above, when both the place of injury and the conduct causing the injury are the same, the general approach is to apply the law of the jurisdiction where the injury occurred. Id. at 1217-18 (citing Restatement (Second) of Conflict of Laws § 145 cmt. e; § 146 cmts. c and d).
Having identified the most relevant contacts, it is necessary to determine which state has the most significant relationship to the occurrence and parties. Id. at 1218. Evaluating the competing interests of the states is the most important aspect of the analysis used in determining the jurisdiction with the most significant relationship. Id. at 1217. Pennsylvania has a strong and clear interest in providing full recovery in survival actions. The Pennsylvania Supreme Court has said that, when it is the domicile of the decedent and his family, the state is "vitally concerned with the administration of [the] decedent's estate and the well-being of the surviving dependents to the extent of granting full recovery, including expected earnings." Griffith v. United Air Lines, Inc.,
The majority of federal courts to address the issue have held that New Jersey also has an interest in applying its Survival Act under these circumstances because it would limit New Jersey defendants' exposure to damage awards. E.g., Capone,
To the extent that the purposes behind the New Jersey Survival Act have been discussed, it appears that the Act was part of a comprehensive scheme of recovery to work in concert with the Wrongful Death Act to ensure proper redress by next of kin and the estate of the deceased following a tort leading to death. See Smith v. Whitaker,
Pennsylvania, on one hand, has expressed a strong interest in affording recovery to plaintiffs in Survival Act cases involving a Pennsylvania decedent. New Jersey, on the other hand, has an interest in protecting both New Jersey plaintiffs and New Jersey defendants by applying its Survival Act in the context of the broader New Jersey remedial scheme. See Smith,
In weighing the interests, our holding in Broome v. Antlers' Hunting Club,
When each state is interested in the application of its laws and the application of the foreign state's law would frustrate the purposes of the forum state, the presumption is to apply the law of the forum. Erny,
Other choice of law norms also counsel in favor of applying New Jersey law in this case. When a person chooses to travel across state lines, he should expect the laws of the place in which he is located to govern his transactions. "By entering the state ... the visitor has exposed himself to the risks of the territory and should not expect to subject persons living there to a financial hazard that their law had not created." Colley,
Lebegern, however, focuses on the decision in Pollock, where the District Court stated "this court believes that, when enacting the statute, the New Jersey Legislature was principally, if not solely, concerned with the plight of the decedent and his estate, not with the defendant tort-feasor."
Taking up this language from Pollock, Lebegern argues that a review of the legislative history of the New Jersey Survival Act does not show an intent to protect the interests of New Jersey defendants. Lebegern also points to the statute's original placement in a body of legislation titled "An Act Concerning Executors and the Administration of Estates." She further argues that there are no New Jersey cases construing the Survival Act as intending to protect defendants.
With respect to the latter argument, a state's interest in the application of its laws can be expressed in ways other than a definitive ruling by a state court concerning the policies behind the legislation. A state's interest cannot depend on the fortuity of appropriate legal action necessary to establish the pertinent jurisprudence. Moreover, while the statute's title or placement in a particular portion of a state code might provide some evidence of legislative intent, Holy Trinity Church v. United States,
Lebegern is correct that there is a paucity of legislative history supporting the theory that the New Jersey Legislature was concerned with resident defendants in passing the Survival Act. She is also correct that legislative history can be a factor in making a choice of law policy analysis. See Erny,
V. Conclusion
The majority of the district courts in this Circuit have held that New Jersey law applies under the circumstances presented in this case. Capone,
Notes:
Notes
This case was submitted to the panel of Judges Roth, Fuentes and Rosenn. Judge Rosenn died after submission, but before the filing of the opinion. The decision is filed by a quorum of the panel. 28 U.S.C. § 46(d)
Judge Roth assumed senior status on May 31, 2006
Cracker argues that in granting the motion to dismiss the District Court did not hold that New Jersey law applied but rather that Pennsylvania law did not apply. Contrary to Cracker's assertion, the District Court flatly stated that "the New Jersey Survival Act will apply herein."Lebegern v. Forman,
Under New Jersey law, the net lost earnings of the decedent, which the decedent's family might reasonably have expected to receive, are recoverable under the New Jersey Wrongful Death Act, N.J. STAT. ANN. § 2A:31-1et seq.
New Jersey's Survival Act states:
Executors and administrators may have an action for any trespass done to the person or property, real or personal, of their testator or intestate against the trespasser, and recover their damages as their testator or intestate would have had if he was living. In those actions based upon the wrongful act, neglect, or default of another, where death resulted from injuries for which the deceased would have had a cause of action if he had lived, the executor or administrator may recover all reasonable funeral and burial expenses in addition to the damages accrued during the lifetime of the deceased.
20 PA. CONS.STAT. ANN. § 3371 provides: "All causes of actions or proceedings shall survive as provided by [42 PA. CONS.STAT. ANN. § 8302] (relating to survival action)."
42 PA. CONS.STAT. ANN. § 8302 provides: "All causes of action or proceedings, real or personal, shall survive the death of the plaintiff or of the defendant, or the death of one or more joint plaintiffs or defendants."
New Jersey's Wrongful Death Act, N.J. STAT. ANN. § 2A:31-1et seq., seeks to compensate survivors "for the pecuniary loss [they] suffer as a result of the death of the decedent." Capone,
