Tolen v. AH Robins Co., Inc.Tolen v. AH Robins Co., Inc.
MEMORANDUM AND ORDER
This matter comes before this court on the motion for summary judgment of the defendant, A.H. Robins Company, Inc., (Robins). Plaintiff, Carol Ann Fausett Tolen 1 , brought this action alleging that she was injured by the use of the Daikon Shield, an intrauterine contraceptive device manufactured and distributed by Robins. The sole issue to be addressed by the court is whether the present action is barred by the applicable statute of limitations. In light of the record presented ón this motion, the court concludes that there is no genuine issue of fact regarding the accrual of the plaintiffs cause of action. Accordingly, the defendant’s motion for summary judgment is hereby GRANTED.
I.
FACTUAL BACKGROUND
After the birth of her third child in January 1972, plaintiff’s personal physician recommended that she have a Daikon Shield inserted for contraceptive purposes. Thereafter, on February 15,1972, a Daikon Shield was inserted into the plaintiff’s uterus as a temporary method of birth control. In July of that year, the plaintiff was diagnosed as being three months pregnant. Her physician advised the plaintiff that the Daikon Shield would not be removed during the pregnancy. Plaintiff delivered a healthy, though premature, infant son on November 23, 1972. Immediately following the delivery, a bilatual tubal ligation was performed; however, the Daikon Shield could not be located during the procedure. At that time, plaintiff was informed by her physician that she would need a second operation in two to three years to remove the Daikon Shield.
In the ensuing three year period, plaintiff experienced several health problems, i.e., pelvic, back and leg pain and cervical erosion. After the onset of pelvic infection and a pap smear strongly suggestive of malignancy, plaintiff underwent a second operation for a hysterectomy, appendectomy and bladder repair on May 30, 1975, at which time the Daikon Shield was found in her lower left stomach cavity and not in her uterus.
On December 20, 1979, plaintiff read a newspaper article discussing the problems concerning the Daikon Shield. Thereafter, on November 13,1981, plaintiff filed a complaint seeking recovery on the theories of negligence, strict liability, implied warranty, express warranty and fraud. Plaintiff alleges that as a result of the use of the Daikon Shield, she is sterile and still experiences pain and weakness in her legs, thus limiting her mobility and her prospects for employment. She is claiming damages for
Robins moved for summary judgment on February 3, 1983, contending that the present action is barred by Ind.Code Ann. § 34-1-2-2 (Burns Supp.1982), the Indiana personal injury statute of limitations. Plaintiff filed a response on March 13,1983, opposing the motion for summary judgment on the following bases: (1) Ind.Code § 34-1-2-2 is no bar because plaintiff’s damages were incapable of ascertainment until December 20, 1979; (2) the limitation period was tolled because the defendant fraudulently concealed the cause of action from the plaintiff; (3) the limitation period was tolled because the defendant is a non-resident and has not maintained an agent for service of process; (4) the action is not time barred because the plaintiff has alleged breaches of implied and express warranties, the limitation period being four years; and (5) the plaintiff has stated a prima facie case of fraud and is entitled to a six year statute of limitations applicable to fraud cases. After a hearing and oral argument held in Lafayette, Indiana on July 27,1983, this matter was taken under advisement. Jurisdiction of this court is predicated upon diversity of citizenship pursuant to 28 U.S.C. § 1332.
II.
DISCUSSION
A.
PERSONAL INJURY STATUTE OF LIMITATIONS
In determining the law applicable to the statute of limitations issue, the court must apply the substantive law of the state in which it sits.
Erie Railroad Co. v. Tompkins,
The following actions shall be commenced within the periods herein prescribed after the cause of action has accrued, and not afterwards: (1) For injuries to person or character, for injuries to personal property, and for a forfeiture of penalty given by statute, within two [2] years.
It is the well-established rule in Indiana that a cause of action accrues at the time injury is produced by wrongful acts for which the law allows damages susceptible of ascertainment.
Montgomery v. Crum,
The Supreme Court of Indiana has recently reaffirmed this rule of law in
Shideler v. Dwyer,
Ind.,
For a wrongful act to give rise to a cause of action and thus to commence the running of the statute of limitations, it is not necessary that the extent of the damages be known or ascertainable but only that damage has occurred. 417 N.E.2d at 289 .
Applying this rule to this case, it is apparent that plaintiffs cause of action is clearly barred by the Indiana statute of limitations. The plaintiff suffered, and was cognizant of, both injury and damages in November 1972 and, at the latest, by May 1975. Plaintiff is claiming damages for her pregnancy which occurred during her use of the Daikon Shield and is further claiming damages associated with expenses incurred with raising her child. Therefore, legal injury alleged by the plaintiff occurred on the date of insertion of the Daikon Shield in February 1972. The first evidence of damage appeared in July 1972 when plaintiff became pregnant and knew that the Daikon Shield had failed in its intended purpose. Therefore, by July 1972 plaintiff had not only suffered legal injury but also knew that she had suffered legal damage.
Further, plaintiff was put on notice as to other elements of damage in November 1972 and May 1975. In November 1972 plaintiff was advised that the Daikon Shield could not be located in her body and would have to be removed at a later time during the course of a second operation. The record indicates that plaintiff had intended the use of the Daikon Shield as a temporary form of birth control and had not expected that an operation would be necessary in order to remove it. Thus, by November 1972 plaintiff was aware of the fact that the birth control device could not be removed as anticipated. Finally, in May 1975 plaintiff was informed that the Daikon Shield was found in her lower left stomach cavity and not in her uterus where it was supposed to be. Plaintiff admits in her deposition testimony that the aforementioned events left her with many questions about the Daikon Shield. Consequently, under Indiana’s two year statute of limitations, the time within which to file suit expired in July 1974, or at the latest, May 1977.
Plaintiff contends that her cause of action did not occur until she discovered the causal connection between her injury and the Daikon Shield. This allegedly occurred in December 1979 when she read an article in the Lafayette Journal and Courier about problems concerning the Daikon Shield. In effect, plaintiff is advocating the application of the discovery rule to the present action.
Indiana courts have not ruled directly on the applicability of the discovery rule to medical products liability cases.
2
Plaintiff places great emphasis on the court’s opinion in
Withers v. Sterling Drug, Inc.,
Moreover, all authority cited in support of the holding in
Withers
concur in the general applicable law regarding the accrual of a cause of action in Indiana, i.e., a cause of action accrues upon the occurrence of a legal injury coalesced with resulting damages. See,
Gahimer v. Virginia-Carolina Chemical Corp., 241
F.2d 836 (7th Cir.1957), Board
of Commissioners of Wabash County v. Pearson,
Even if this more liberal interpretation of the statute of limitations would be applied to this case, plaintiff’s action is untimely.
3
The discovery rule argument was presented to the court in
In Re Northern District of California “Daikon Shield” IUD Products Liability Litigation, Sidney-Vinstein
v.
A.H. Robins Co.,
[a]bsent the existence of a fiduciary obligation on the part of a defendant, a plaintiff is under an affirmative duty to exercise diligence in discovering the facts relating to her cause of action. Once a plaintiff has knowledge of information which would place a reasonable person on notice as to the possible origin of the alleged injury, the statutory period will be deemed to have commenced. Id. at 197.
Likewise, in this case, plaintiff had enough information to put a reasonable person on notice of the possible origin of the injury at least by May 1975. The plaintiff had actual knowledge in 1975 that the shield had failed as a contraceptive device, that surgery was required to remove the Daikon Shield, and that the Daikon Shield was found outside her uterus in her stomach cavity and, consequently, was not where it should be. Therefore, plaintiff’s claim is time barred by the statute of limitations for personal injury actions.
B.
FRAUDULENT CONCEALMENT
Plaintiff's next point of contention is that the complaint’s allegations of fraudulent conduct tolled the limitation period under the doctrine of fraudulent concealment. While fraudulent concealment does toll the statute of limitations,
4
Indiana law narrowly defines concealment.
Morgan v. Koch,
The fraudulent concealment doctrine does not apply to the allegations in this case. Plaintiff has relied upon allegations that Robins misrepresented pregnancy rates, complications, side effects, hazards and dangers and radiopacity of the Daikon Shield in an active manner calculated to prevent the plaintiff from ascertaining that legal injury had been done to her. The documents presented in this cause, depositions and exhibits, deal primarily with representations made prior to plaintiff being fitted with the Daikon Shield. Consequently, any alleged fraud would more properly be labeled fraud in the inducement rather than fraud which would have concealed the existence of a claim. Courts which have addressed this issue are in agreement that this is not a case in which plaintiff was hindered by the action or lack of action on the part of Robins from filing a complaint during the period when she could have brought this lawsuit. See,
e.g., Philpott v. A.H. Robins Company, Inc.,
An exception to the affirmative acts requirement exists where there is a fiduciary or confidential relationship giving rise to a duty to disclose material information between the parties. Guy v. Schuldt, supra; Whitehouse v. Quinn, supra. In this case there is no confidential or fiduciary relationship between the plaintiff, a consumer, and Robins, a manufacturer of pharmaceutical products. This exception, then, has no application to this case.
Additionally, this court finds persuasive the rationale and conclusion set forth by the court in
Sidney-Vinstein v. A.H. Robins Company,
Assuming that the defendants did attempt to hide the defective nature of their product from the plaintiffs, that concealment necessarily ended in 1974 when the defendants warned physicians of the possible danger associated with the Daikon Shield and removed the product from the market. Thus, we find that, at the very latest, the limitations clock began to run in 1974. Id. at 884.
In the present case, the affidavit of plaintiffs physician, Dr. Leak, establishes that the Robins detailmen informed him that the Daikon Shield had been taken off the market and the detailmen removed all of the Daikon Shields from his office. Therefore, any alleged concealment must have ended in 1974 and the limitations clock began to run.
C.
EXPRESS AND IMPLIED WARRANTY
The plaintiff has also alleged that Ind. Code Ann. § 26-1-2-725 (Burns 1974) is applicable to the present action because the complaint alleges breach of implied and express warranty. Ind.Code § 26-1-2-725 provides in pertinent part:
(1) An action for breach of any contract for sale must be commenced within four [4] years after the cause of action has accrued ....
(2) A cause of action accrues when the breach occurs, regardless of the aggrieved party’s lack of knowledge of the breach. A breach of warranty occurs when tender
It is clear from the face of the statute that even if the four year statute of limitations is applicable to this action, plaintiff’s claim is barred. The four year limitation period commences to run upon tender of delivery. This court is of the opinion that tender of delivery occurred in this case at the time the Daikon Shield was inserted into plaintiff’s uterus. The uncontroverted facts of the case reflect that the Daikon Shield was inserted in February 1972 and this action was not commenced until November 1981. Therefore, if the normal accrual rule is applied, then the express and implied warranty causes of action for injuries resulting from the insertion of the intrauterine device would be barred by the statute of limitations since the claims were interposed more than four years later.
Further, plaintiff has attempted to argue that her case falls within an exception to the general rule that the four year limitation period commences upon tender of delivery. The exception provides that where a warranty “explicitly extends to future performance of the goods” the cause of action does not accrue until the breach is or should have been discovered. Plaintiff cites to the court language from “Answers to your Patients’ Questions” (Plaintiff’s Response to Motion for Summary Judgment, Exhibit P), a brochure Robins provided to physicians to give to their patients. A question and answer appearing under the heading “What to expect from your new I.U.D.” reads in part:
How long can I expect protection from the Shield? For a period of several years. Some women have been effectively protected by the same I.U.D. for five years or longer ...
Plaintiff contends that the above language explicitly states that the consumer can expect protection for at least three years and strongly implies that the protection could continue for more than five years.
No cases in Indiana have considered the applicability of the exception to the normal accrual rule under Ind.Code § 26-1-2-725(2). The court in
Stumber v. Ferry-Morse Seed Co.,
Courts in other jurisdictions have addressed this specific issue in construing U.C.C. § 725(2), the Uniform Commercial Code provision upon which the Indiana statute is patterned. Though recognizing that this is not binding authority, this court agrees with the rule articulated by the court in
Standard Alliance Industries, Inc. v. Black Clawson Company,
Most courts have been very harsh in determining whether a warranty explicitly extends to future performance. Emphasizing the word “explicitly”, they have ruled that there must be a specific reference to a future time in the warranty. As a result of this harsh construction, most express warranties cannot since, by their very nature, they never “explicitly extend to future performance____”
See also,
Raymond-Dravo-Lagenfelder v. Microdot, Inc.,
Moreover, one set of commentators has said, “it should be clear that this extension of the normal warranty period does not occur in the usual case, even though all warranties in a sense apply to future performance of goods.” J. White & R. Summers, Uniform Commercial Code § 11-9,
While certain express warranties have been found to extend explicitly to future performance, most of the courts which have considered the question in the context of U.C.C. § 2-725(2) have held that an implied warranty by its very nature cannot explicitly extend to future performance.
Stumber v. Ferry-Morse Seed Co., supra; Standard Alliance Industries, Inc. v. Black Clawson Company, supra; Wilson v. Massey-Ferguson, Inc.,
The express and implied warranties in this case must be considered in light of the above authorities. Plaintiff places special reliance upon the express representations in the patient brochure. However, the express warranty relied upon does not extend explicitly to future performance. In those cases in which there was found to be an express warranty explicitly extending to future performance, the warranty specifically made reference to future time, such as “lifetime warranty”,
(Rempe v. General Electric Co.,
28 Conn.Super. 160,
The language in plaintiffs exhibit—“For a period of several years”—clearly does not meet the exception because it does not meet the requirement of a “specific reference to a future time period.” Accordingly, the express warranty cause of action is time barred. The implied warranty cause of action is also barred by the statute of limitations with respect to all injuries being alleged.
D.
DEFENDANT’S STATUS AS A NONRESIDENT WITHOUT AN AGENT FOR SERVICE OF PROCESS WITHIN THE MEANING OF IND.CODE 34-1-2-6
In addition to the arguments already considered, plaintiff contends that the present action is not barred because the statute of limitations was tolled by Ind. Code Ann. § 34-1-2-6 (Burns Supp.1982), which constitutes an exception to the limitations period, and reads in pertinent part:
(a) the time during which the defendant is a non-resident of the state shall not be computed in any of the periods of limitation except during such time as the defendant by law maintains in the state of Indiana an agent for service of process or other person, who, under the laws of the state of Indiana, may be served with process as agent for the defendant.
Plaintiff’s reliance on Ind.Code § 34-1-2-6 is misplaced. The Secretary of State has at all times been deemed to be the agent of A.H. Robins upon whom service of summons could have been made by virtue of Ind.Code Ann. § 23-3-3-1 (Burns Supp. 1982). The statute states in relevant part as follows:
The engaging in any transaction or the doing of any business in this state by any foreign corporation not licensed nor admitted to do business in this state under any existing act or any act hereafter enacted shall be deemed equivalent to an appointment by such foreign corporation of the Secretary of State, or his successor in office, to be the true and lawful attorney and agent of such foreign corporation
The record contains the affidavit of William A. Forrest, Jr., Vice President and General Counsel of Robins, establishing that the defendant was doing business at all times relevant to plaintiff’s complaint. It is clear that under Indiana law the Secretary of State is deemed to be the agent of Robins because the company has engaged in a transaction and done business in Indiana. Consequently, Ind.Code § 34-1-2-6 does not operate to toll the statute of limitations in this case.
Further, plaintiff has argued in her brief that because Robins has failed to register with the Secretary of State, and, therefore, does not maintain a resident agent in Indi
The rule of law articulated in
Dague
is well supported by Indiana authority. The issue was addressed by the court in
Forslund v. New York Central Systems,
While we have found no Indiana authority on the point, according to a majority of the authorities elsewhere, the statute of limitations, despite the saving clause, is available to a foreign corporation which has placed itself in such a position within the State so as to be subject to personal service of process. 20 C.J.S. Corporations, § 1934, p. 198; 36 Am. Jur.2d, Foreign Corporations § 72, p. 87.252 N.E.2d at 504 .
Also, the court in
American States Insurance Company v. Williams,
Thus, the essential element determinative of this issue is the existence of a statutory agent for the service of process. Such an agent exists in this case in the person of the Secretary of State of Indiana pursuant to Ind.Code § 23-3-3-1 thereby eliminating Ind.Code § 34-1-2-6 as a device by which to toll the statute of limitations.
E.
FRAUD
Plaintiff’s final contention is that the present action is governed by the six year fraud statute of limitations. 6 She claims Robins made false representations to physicians and to the American public with the full knowledge of their falsity with the result being that plaintiff justifiably relied upon the representations and subsequently sustained injury.
This court does not believe that the cause of action for fraud should be treated as a special cause of action for statute of limitations purposes. It is the well established rule in Indiana that in determining what period of limitations applies the essence of the action controls rather than the form in which it is pleaded.
Koehring Co. v. National Automatic Tool Co.,
The Supreme Court of Indiana recently addressed this issue in Shideler v. Dwyer, supra, a legal malpractice case discussed above. The plaintiff’s complaint alleged breach of contract, negligence, fraud, constructive fraud and breach of fiduciary duty. That court held that the method of pleading did not control the limitations period applicable to the complaint. Regardless of the plaintiff’s pleading label and theories of recovery, the lawsuit was determined to be a malpractice case governed by the statute of limitations applicable to such actions.
The essence of the plaintiff’s complaint in this case is that the defendant manufacturer placed a defective product on the market which caused injury to plaintiff. It is, in fact, a products liability action for personal injuries received and, as such, it is properly governed by Ind.Code § 34-1-2-2.
CONCLUSION
Accordingly, for the above reasons, no genuine issue of material fact exists and it is therefore ordered that summary judgment in favor of the defendant, Robins, be, and the same is hereby GRANTED.
SUPPLEMENTAL MEMORANDUM AND ORDER
Subsequent to this court’s decision in
Carolyn Fausett Tolen v. A.H. Robins Company, Inc.,
filed August 26, 1983, the Court of Appeals for the Seventh Circuit decided
Kathleen M. Hansen v. A.H. Robins Co., Inc.,
In
Hansen,
A.H. Robins raised the Wisconsin three-year statute of limitations for personal injury action as a bar to plaintiff’s claims and moved for summary judgment which was granted by the district court. Following the district court’s action in
Hansen,
the state of Wisconsin adopted a certification procedure by which an unsettled question of state law may be decided by the Supreme Court of Wisconsin upon request of the Supreme Court of the United States, the United States Court of Appeals, or the highest appellate court of another state. At the time the
Hansen
case was presented to the Seventh Circuit on appeal, the court had recently decided
Neubauer v. Owens-Coming Fiberglas Corp.,
Inasmuch as the pivotal issue of the Hansen case, the statute of limitations problem, was decided within the context of the substantive law of the state of Wisconsin, and that law is different than the law of Indiana in that this state does not adhere to the discovery rule, the decision in Carolyn Fausett Tolen v. A.H. Robins Company, Inc. stands affirmed.
Notes
. After having read her deposition, plaintiff changed the spelling of her name from Carolyn Tolen to Carol Ann Tolen stating that she had been misunderstood when she initially identified herself. This explains the apparent inconsistency between her name as it appears in the caption of the case and as it later appears in the body of the opinion. The original spelling has been retained in the caption in conformance with the official court records in this case.
.
See Toth v. Lenk,
. A court addressing the identical issue has come to the same conclusion in two cases factually similar to this case. See,
Dean v. A.H. Robins, Inc.,
No. IP 80-70-C (S.D.Ind. Feb. 20, 1980), and
Neuhauser v. A.H. Robins Company, Inc.,
No. A 81-169-C,
. Ind.Code Ann. § 34-1-2-9 (Bums 1973) provides:
If any person liable to an action, shall conceal the fact from the knowledge of the person entitled thereto, the action may be commenced at any time within the period of limitation, after the discovery of the cause of action.
. In
Pitts,
plaintiff, brought a wrongful death action against corporations doing business in Indiana and involved at some stage in the production and distribution in Indiana of products containing asbestos. Count IV of her complaint contained an allegation of fraudulent concealment which was dismissed by the trial court before summary judgment was granted. Nevertheless, the court stated that the allegations in the complaint were insufficient to charge the defendants with fraudulent conceal
. Ind.Code Ann. § 34-1-2-1 (Bums 1973) reads in part:
The following actions shall be commenced within six [6] years after the cause of action has accrued, and not afterwards.
* * Sic * * *
Fourth. For relief against frauds.