Lead Opinion
concur.
The principal, question considered by this Court en banc is whether a federal court sitting in the state of New York may constitutionally “apply” a Massachusetts statute giving a cause of action for wrongful death and refuse, for reasons of state policy, to follow a provision of that statute which would limit the plaintiff’s recovery to $15,000. The question arises in an action for wrongful death occasioned by a plane crash in Massachusetts. The action was brought in the United States District Court for the Southern District of New York, and was tried before Judge McGohey. The judge ruled that plaintiff’s recovery was not bound by the arbitrary limit of $15,-000 provided by Chapter 229, section 2, of the Massachusetts General Laws.
Several additional considerations which we shall discuss, convince us that the conclusion we have reached is compelled.
The essential facts are not in dispute. Marilyn W. Pearson, widow and adminis-tratrix of the estate of John S. Pearson, and a citizen and domiciliary of New York, commenced the present action against Northeast Airlines, Inc. to recover damages for the death of her husband, allegedly caused by the defendant’s negligence. Northeast Airlines is a Massachusetts corporation authorized to do business in New York. Pursuant to that authorization, it maintains ticket offices throughout the state, and actively promotes the use of its transportation facilities by New York citizens by means of widespread advertising. It operates a full schedule of flights from New York airports and earns a substantial amount of revenue from New York citizens. The decedent, a New York citizen and domiciliary, purchased his flight ticket at the New York offices of Northeast Airlines. He boarded the Northeast plane at La Guardia Airport, in the City of New York, bound for Nantucket Island, Massachusetts, and on the evening of August 15, 1958, the decedent’s plane crashed in the vicinity of Nantucket.
Another action, having no connection with the Pearson family, had already been maintained in the courts of the State of New York by the administrator of Edward J. Kilberg, also a passenger on the same ill-fated flight to Nantucket.
This writer has already criticized the argument apparently adopted by the panel opinion, that New York was constitutionally disabled from applying its own substantive rules of law to a cause of action arising out of a plane crash in Massachusetts. See dissent,
It is suggested, however, that a different constitutional analysis supports the result reached by the panel. The proponents of this analysis are willing to assume that New York’s “contacts” with the transaction are sufficient to support an application of New York’s entire wrongful death statute to this accident although it occurred outside the territory of New York. In adopting this approach they would concede that the facts of this case — i. e., (a) Mr. Pearson’s purchase of his airplane ticket at a New York office of a foreign corporation doing a large part of its business in New York; (b) his attempt to travel from New York, where he was domiciled, on a regularly scheduled flight most of which was conducted over New York; and (c) the New York domicile of his wife, adminis-tratrix and beneficiary under the Wrongful Death Act — are so closely related to the State of New York that it would have the constitutional power to apply its own wrongful death law to this litigation. However, the proponents of this constitutional analysis would deem it contrary to the mandate of the Full Faith and Credit Clause if New York were to entertain a claim for wrongful death “under” the Massachusetts aсt but apply New York principles governing the exent of permitted recovery. In summary, they urge that once a New York court recognizes a claim for wrongful death based on Massachusetts law, that law must control every incident of the claim. They argue that New York is not required to give any faith or credit to the Massachusetts act, but once it gives Massachusetts law some faith and credit it must also give it full faith and credit.
We find this construction of the constitutional mandate untenable. Despite the resourceful arguments put forth in its behalf, we are not persuaded that a statutory limitation upon the amount of money that may be recovered should merit any greater obeisance than statutory limitations addressed to the length of time during which the action may be brought, or to the parties who are empowered to bring that suit, or to the survival or abatement of the cause of action upon the death of the injured party. In
We are directed to no precedent, and are unaware of any compеlling logic independent of precedent, which requires a state to enforce such statutory qualifications whenever it chooses to recognize a foreign-based cause of action.
Despite the effort in Wells to pierce to the core of the constitutional issue rather than be occupied by mere labels, we are told that the case is not controlling in the litigation before us, because statutes of limitations involve merely matters of “procedure”, of judicial house-keeping. We are further told in buttress of this proposition that it is sheer verbiage to say that the difference between a right limited to $15,000 and one that may run to $160,000 is mere “procedure”. But the verbiage is equally thin that would explain any constitu
We do not rest, however, on cases upholding the constitutional power of the forum to disregard the statute of limitations of the locus delicti. The Supreme Court has, within the past year, cited with approval two cases emanating from the highest courts of two of our states which applied a rule of local law to govern an incident of a cause of action based upon the law of a foreign state. See Richards v. United States,
Our decision cannot, therefore, be interpreted to condone a forum’s applying its own rules in a wanton manner by labeling matters “procedural” while arbitrarily choosing the parts of a foreign statute it wishes to enforce by labeling them “substantive”.
“The necessity [to decide the extent ‘to which the statute of one state may qualify or deny rights asserted under the statute of another’] is not any the less whether the statute and policy of the forum is set up as a defense to a suit brought under the foreign statute or the foreign statute is set up as a defense to a suit or proceedings under the local statute. In either case, the conflict is the same. In each, rights claimed under one statutе prevail only by denying effect to the other. In both the conflict is to be resolved, not by giving automatic effect to the full faith and credit clause, compelling the courts of each state to subordinate its own statutes to those of the other, but by appraising the governmental interests of each jurisdiction, and turning the scale of decision according to their weight.”294 U.S. at 547 ,55 S.Ct. at 524 .
The decision we reach seems to be in keeping with a view of the Constitution as a primer of fundamental principles for the conduct of a developing federal system rather than a manual of technical rules. The Supreme Court was mindful of this when it recently pronounced
“As a consequence of the modern practice of conducting widespread business activities throughout the entire United States, this Court has in a series of eases held that more states than one may seize hold of local activities which are part of multistate transactions and may regulate to protect interests of its own people, even though other phases of the same transactions might justify regulatory legislation in other states.” Watson v. Employers Liability Assurance Corp.,348 U.S. 66 , 72,75 S.Ct. 166 , 169,99 L.Ed. 74 (1954).
We construe this as recognizing that a single “transaction” may contain within itself several distinct “issues” legitimately made subject to the law of more than one state.
True, New York reiterated its partial adherence to the rule of lex loci delictus. But does this require that New York be deprived of any power to apply a fundamental rule of public policy to one incident of the cause of action? New York has done nothing more than to apply a traditional choice-of-law rule which designates the law of Massachusetts as the source of liability for a wrongful death. It has absorbed the Massachusetts rule into the corpus of New York law for purposes of adjudicating this case fairly. See Siegmann v. Meyer,
It is argued in the dissenting opinion that the decision we reach today will result in an unwarranted invasion by New York of Massachusetts’ freedom of action, and that henceforth no state can legislate without incurring the risk that the courts of a sister state, having some contact with the transaction, will use its law to reach a result never intended by the legislators. We find these arguments unconvincing because they rest on a premise with a very dubious constitutional underpinning. We may concede that the Wrongful Death Statute of Massachusetts, almost certainly designed with an eye toward the regulation of occurrences transpiring wholly within Massachusetts, should be honored fully and completely when the incident under litigation is- a local one. Such, we take it, is the import of Home Insurance Co. v. Dick,
The constitutional assault upon the Kilberg principle has not been limited to the Full Faith and Credit Clause, however. We are likewise told that it violates the Due Process Clause of the Fourteenth Amendment.
This “deprivation of property” argument may also explain a purported distinction urged upon us, which is drawn between the case before us and some of the earlier Supreme Court cases, such as Wells v. Simonds Abrasive Co.,
“In Wells the plaintiff was not deprived of all remedy; he could sue in any state where defendant could be found and which has a longer statute of limitations than Pennsylvania [the forum] or.follows a different conflicts rule. In our case defendant had no choice as to the forum. If deprived of the protection of the limitation imposed by the lаw which, as Kilberg recognizes, created the liability, he will be treated unjustly.”307 F.2d at 135 .
In short, it is argued that Wells merely closed off to the plaintiff the courts of one state, whereas Kilberg fastened upon the defendant an irrevocable liability. This theory, which draws a constitutional distinction between temporary inconvenience to the plaintiff and irremediable prejudice to the defendant, falters in at least one serious respect. It assumes that the plaintiff will be free to step across state lines, serve the defendant, and start his suit all over again. This assumption is immediately prone to attack. The dismissal of the plaintiff’s action may be an effective adjudication where there is no other forum in which suit may be brought.
Furthermore, once conceded that the defendant is given no vested property right merely because his interstate activities result in tortious conduct in a state whose law happens to be favorable to him, then the distinction between the result in Wells and the result in Kilberg falls of its own weight. We must emphasize that we are not concerned here with the wisdom of New York’s choice-of-law, but only with its power to сhoose as it did in Kilberg. The Supreme Court in Wells upheld the power of the forum to subordinate or replace “substantive” or “integral” parts of a foreign statute so as to relieve a defendant from liability enforceable under the foreign statute. But is the forum to be deprived of the constitutional power to deal with a statute in exactly the same manner when the only difference will be a favorable result to the plaintiff instead of the defendant? The Supreme Court has in fact held that a state may choose to ignore or to qualify defenses that arise under the laws of another state. Watson v. Employers Liability Assurance Corp.,
We therefore see no escape from the proposition we announce today, that a legitimately interested state may, under the circumstances of this case, apply a firmly fixed and long existing policy of its own, although this would remove a defense provided by an “integral” provision of the locus’ statute creating the cause of action. This Court, in Bournias v. Atlantic Maritime Co., supra, in an opinion by then Circuit Judge Harlan, held that a District Court sitting in New York could refuse to apply the one-year Panamanian statute of limitations incorporated in the very statute creating the cause of action upon which the suit was brought. There, as here, part of a foreign statute was rejected so as to eliminate a defense to the suit and to enhance the liability; in Bournias, it was length of time, in this case it is dollar limit. Both adversely'affected the defendant.
A violation of the Due Process Clause of the Fourteenth Amendment requires not only that there be a deprivation of property — and we have found none here — but also some unreasonable or unreasoned imposition of liability. In the area of conflict of laws, the Due Process Clause prevents an arbitrary application of a state’s jurisprudence to an out-of-state event. It is not disputed that New York would not be arbitrary if it selected its own law to apply to the whole of this controversy. How, then, can the selection become arbitrary and constitutionally prohibited when New York makes an even more intelligent and rational application of its own law to a particular issue in the litigation?
The field of conflict of laws, the most underdeveloped in our jurisprudence from a practical standpoint, is just now breaking loose from the ritualistic thinking of the last century. Recent opinions of the Supreme Court and the great wave of academic writing reinforce this trend toward flexible and articulate selection of the laws governing multistate transactions.
Finally, we hold, for the reasons stated in this writer’s original dissenting opinion, that Judge McGohey was right
The judgment below is affirmed, as reduced by the modification of the award for interest.
Notes
. Pearson v. Northeast Airlines, Inc.,
This section of the Massachusetts General Statutes reads: “Damages for death by negligence of common carrier. If the proprietor of a common carrier of passengers * * * causes the death of a passenger, he or it shall be liable in damages in the sum of not less than two thousand nor more than fifteen thousand dollars, to be assessed with reference to the degree of culpability of the defendant or of his or its servants or agents, and recovered and distributed as prоvided in section one, and to the use of the persons and in the proportions, therein specified.”
The statute has since been amended to raise the upper limit of recovery to $20,000. Mass.Gen.Laws Ann.Ch. 229, § 2 (Supp.1961).
. The jury brought in a verdict in the sum of $134,043.77. The court’s judgment was later amended to include an additional $26,160.88 of interest.
. Article IV., Section 1. “Full Faith and Credit shall be given in each State to the Public Acts, Records, and Judicial Proceedings of every other State. And the Congress may by general Laws prescribe the Manner in which such Acts, Records and Proceedings shall be proved, and the Effect thereof.”
. Pearson v. Northeast Airlines, Inc.,
. See 28 U.S.C. § 46(c) (1958).
. See
. Kilberg v. Northeast Airlines, Inc., supra.
This case has, in the short period of time since its resolution, garnered an inordinately large amount of space in legal periodicals. See 25 Albany L.Rev. 313; 15 Ark.L.Rev. 187; 41 B.U.L.Rev. 257; 27 Brooklyn L.Rev. 336; 49 Calif.L.Rev. 187; 61 Colum.L.Rev. 1497; 46 Cornell L.Q. 637; 30 Fordham L.Rev. 170; 49 Geo.L.J. 768; 74 Harv.L.Rev. 1652; 36 N.Y.U.L.Rev. 723; 37 Notre Dame Lawyer 194; 15 Rutgers L.Rev. 620; 35 St. John’s L.Rev. 357; 12 Syracuse L.Rev. 395; 28 U.Chi.L.Rev. 733; 39 U.Cin.L.Rev. 511; 15 Vand.L.Rev. 271; 47 Va.L.Rev. 692.
. See Medinger v. Brooklyn Heights R. R. Co.,
. See note 13 of this writer’s dissent from the panel opinion.
. See
. See, e. g., Hausman v. Buckley,
. Most of tlie cases urged on behalf of the principle that the maximum-liability provision is an inseparable part of thе right and therefore must be enforced by the forum are relics of the vested-rights theory, sufficiently discussed by this writer in
One of the cases urged most forcefully in support of the constitutional analysis under discussion is Order of United Commercial Travelers of America v. Wolfe,
At any rate, Wolfe dealt with an admittedly unique situation, the relationship between members of a fraternal benefit society. The Court’s own language leads us to believe that Wolfe would not be controlling in this case. See
. There can be no doubt that statutes of limitations embody a concern for the speedy disposition of claims within a reasonable period after their origin, for the protection of the defendаnt from protracted fear of litigation. This seems to be the very reason that the period of limitations in wrongful death cases is usually shorter than that of the ordinary action of negligent torts. The fact that statutes of limitations in wrongful death actions are usually denominated “substantive”, see Restatement, Conflict of Laws § 397, clearly reveals that the policies they embody are not merely those of judicial housekeeping. Compare N.X. Dee.Est.Law, McKinney’s ConsohLaws c. 13, § 130 (two-year period of limitations for wrongful death action) with N.Y.Civ. Prac. Act § 49 (three-year period for negligent injury to property or person). That “stale evidence” is not the only reason for statutes of limitations is corroborated by the fact that the very same complex of facts may give rise to both a cause of action in contract or quasi-contract and a cause of action in tort; it is almost universally true that the statute of limitations on each such cause of action will differ in length. See Restatement, Torts § 899, Comment b.
. Much of the language in Kilberg classifying the maximum-liability provision аs procedural might have appeared to some to be just such a subterfuge. But this language has since been disregarded by the New York Court of Appeals and Kilberg interpreted as an affirmation of a strong state public policy. See Davenport v. Webb,
. In the converse situation, Massachusetts courts have long utilized the public policy argument as a means of guarding Massachusetts interests in multistate transactions. See
. “* * * nor shall any State deprive any person of life, liberty, or property, without due process of law * *
. Further, a dismissal on public-policy grounds treads the thin line between a judgment on the merits and a judgment without prejudice; should a second jurisdiction view it as a judgment on the merits, the plaintiff will be “irremediably prejudiced” there. This lends support to our contention, to be developed shortly, that the fact that an application of the forum’s public policy favors one party rather than the other is constitutionally irrelevant.
. An attempt might be made to distin- ' guish Bournias on the Court’s finding that
. For a lucid discussion of the need for deciding conflict of laws problems on the basis of the рarticular issues in dispute, see Cavers, “Re-Restating the Conflict of Laws: The Chapter on Contracts,” Twentieth Century Comparative and Conflicts Law, 349, 357-58 (1961).
. See Richards v. United States,
. See Freund, “Chief Justice Stone & the Conflict of Laws,” 59 Harv.L.Rev. 1210, 1235-36 (1946): “If the task of Conflict of Laws is to understand, harmonize, and weigh competing interests' in multistate events, and if the desideratum of uniformity will be approached most satisfactorily by evolving rules that deliberately seek these objectives, then we seem to be hardly ready for a set of precepts imposed in the process of Supreme Court decision as fixed canons of constitutional law.”
. See
Dissenting Opinion
(dissenting).
I find nothing in the Federal Constitution that would prevent the legislature of New York from amending its wrongful death act, Decedent Estate Law, § 130 ,et seq., to include the death in a sister .state of a New York resident travelling on a flight from New York on a ticket purchased in New York, or the courts of New York from now reading its wrongful death act to cover such a case. 'Whether any one of these “contacts” would alone warrant New York in thus .applying its own wrongful death act and refusing any “faith and credit” to the •“public acts” of the sister state, certainly the combination does. So far as con.cerns the issue here, Alaska Packers Ass’n v. Industrial Accident Commission,
It is common ground that New York has not followed any of the courses just outlined. All seven of the judges of the Court of Appeals in Kilberg repudiated an action ex contractu. The majority likewise disclaimed any idea that recovery might be had, in tort, under New York’s wrongful death act. Chief Judge Desmond said,
A superficially attractive answer is that if New York could validly arrive at the Kilberg i'esult on a theory of contract or through amendment or construction of its own wrongful death act, the Constitution does not demand a different conclusion because New York attains the same goal through excising or altering a provision of the Massachusetts Act. I say “superficially attractive” since the two processes differ not only conceptually— which may not be altogether unimportant in a legal system designed to maintain a certain degree of order among fifty states ■ — but practically as well. Although the primary interest of the framers of the Constitution in the area of intergovernmental relations was doubtless to set boundaries between the new Federal Government and the states, they were concerned also with preventing encroachments by one state upon another. See Ogden v. Saunders,
An important reason why a forum state may not do this is that it thereby interferes with the proper freedom of action of the legislature of the sister state. The terms and conditions of a claim created by statute inevitably reflect the legislature’s balancing of those considerations that favor and of those that oppose the imposition of liability. The legislature may be quite unwilling to create the claim on terms allowing it to be enforced without limit of amount as most common law rights can be, or for a period bounded only by statutes of limitations ordinarily aрplicable. The Full Faith and Credit Clause insures that, in making its choice, the legislature creating the claim need not have to weigh the risk that the courts of sister states looking to its “public acts” as a source of rights will disregard substantial conditions which it has imposed — a calculation that would involve variables so numerous and unpredictable as to preclude any intelligent choice. This consideration is inapplicable to instances where the forum, looking solely to its own substantive law, wholly disregards that of the sister state, as the Supreme Court held permissible in Alaska Packers; there nothing turns on whether or not the lawmakers of the sister state have acted or how they have acted. True, conduct in the enacting state has been given consequences diifer-
The situation is not altered by the circumstance that we are here dealing with a wrongful death act. If the forum state may disregard limitations on recovery in one type of foreign statute to which it looks as a source of rights, at least when it has as many “contacts” as New York had here, I can see no basis in principle why it may not do so in every other, and the majority appears to hold that view. Indeed, the instant case is a peculiarly weak one for reliance on any special rule relating to wrongful death acts. The Massаchusetts statute departs from the norm in its penal character. “[T]he Massachusetts acts are exactly what Lord Campbell’s act is not.” Hudson v. Lynn & Boston R. R. Co.,
The Kilberg opinion justifies all this, and our brothers approve, on the basis that “It is open to us, therefore, particularly in view of our own strong public policy as to death action damages, to treat the measure of damages in this case as being a procedural or remedial question controlled by our own State policies.”
Although, as the Court of Appeals indicated in Kilberg, there are cases where the issue “whether a given question is one of substance or procedure” may be doubtful,
I find little force in a contention that the distinction between substance and procedure should not be given constitutional significance in the application of the Full Faith and Credit Clause. On the contrary, as was so clearly pointed out by Mr. Justice Brandéis in the John Hancock case, supra, blind acceptance of the characterizations made by state courts would be the surest way to undermine this constitutional guarantee. If. the label affixed by the forum state were conclusive, New York could equally override the Massachusetts limit on recovery when it did not have the contacts that it had in Kilberg or here. In this field of law also, there may be a “twilight zone”, see Sampson v. Channel,
There remains only to consider the contention that what New York has done is supported by Watson v. Employers Liability Assurance Corp.,
We would reverse the judgment of the District Court, as was done in the decision of the panel written by Judge Swan.
. This was that “the standard of culpability, by its total disregard for the injury actually sustained by the decedent’s dependents, violates the primary purpose of most wrongful death legislation, including that of New York, which is concern for the pecuniary loss of the beneficiaries who remained behind,”
. No case holds that the forum may constitutionally extend the period “where a statute creates a new liability and in the same section or in the same act limits the time within which it can be enforced,” Davis v. Mills,
. In making this change the legislature had before it, and explicitly disapproved, bills which would have removed the recovery ceiling altogether. See Legislative Record at 583, in Commonwealth of Massachusetts, General Court of 1962, Bulletin of Committee Work and Business of the Legislature (Final Ed., 1962 Sess.) (committee states that its recommendation of H. No. 3476, the bill which passed, was based on consideration of three bills, two of which, H. No. 274 and H. No. 2964, would have abolished ceiling); Mass.Judicial Council, 37th Report 45—47 (1961) (“accepted” June 21, 1962) (adverse report on bill to eliminate ceiling).
. Haumschild v. Continental Casualty Co.,
