Trust Company Bank v. United States Gypsum CompanyTrust Company Bank v. United States Gypsum Company
In this action filed in Mississippi state court and removed to the United States District Court for the Southern District of Mississippi, plaintiff Trust Company Bank complains that it has suffered damages from the presence of asbestos in a twenty-two year old building it owns in Georgia. The federal district court declined to grant relief, concluding that it lacked subject matter jurisdiction and, in the alternative, that the Mississippi statute of repose barred the plaintiff’s action. On appeal, while we disagree that the district court lacked jurisdiction, we are persuaded that the Mississippi statute of repose precludes a judgment in the plaintiff’s favor. Accordingly, this Court affirms.
I. FACTS AND PROCEDURAL HISTORY
Many years ago, when Hank Aaron was the hero of every teenage boy in Georgia and James Earl Carter, Jr. was still a farmer in Plains, the Trust Company Bank (“Trust”) secured a contractor to erect a building in downtown Atlanta. In the construction of the building, the contractor used several fireproofing materials that contained asbestos, a carcinogen which after a long latency period can attack and then incapacitate the lungs and other vital body organs. The contractor finished construction of the Trust building in 1969.
The presence of asbestos in its building eventually forced Trust to institute an expensive abatement program. On June 30, 1989, to recover some of the expense of this abatement program, Trust filed a lawsuit in Mississippi state court against United States Gypsum Company (“USG”), the company which designed and manufactured the fireproofing materials that contained asbestos. Trust alleged that USG manufactured defective and unreasonably dangerous products with the knowledge that these products can release toxic asbestos fibers. USG removed the action to federal district court.
Five days after removal of the case to federal court, USG filed a motion for dismissal, contending that the court lacked subject matter jurisdiction because the case was a “local action” which should have been pursued in Georgia. The district court denied this motion. Undaunted, USG filed a motion for summary judgment, this time arguing that the Mississippi statute of repose barred the plaintiff’s action. On September 27, 1990, the district court
sua sponte
reconsidered USG’s motion for dismissal and, reversing its earlier decision, dismissed the plaintiff’s action under
On October 9,1990, Trust filed a “Motion to Reconsider” the district court’s judgment against it. The district court denied this motion on February 1,1991, and within thirty days thereafter, Trust filed its notice of appeal.
II. DISCUSSION
Trust raises two arguments: (1) that the district court erred in refusing to exercise subject matter jurisdiction over this case and (2) that the district court erred in concluding that the Mississippi statute of repose bars the plaintiff’s action. Before turning to these arguments, however, we must consider whether this Court has acquired the requisite appellate jurisdiction over this case.
A. Appellate Jurisdiction
1. Timeliness of the Notice of Appeal
USG contends that Trust did not file a timely notice of appeal and, therefore, that this Court may not exercise its appellate jurisdiction. As a general rule, if a party desires to appeal an adverse judg
Plaintiff Trust filed its notice of appeal on March 4, 1991, within thirty days after entry of the district court order denying its “Motion to Reconsider.”
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As long as this “Motion to Reconsider” constitutes a
2. Effectiveness of the Notice of Appeal
USG further contends that, even if Trust filed a timely notice of appeal, Trust did not effectively appeal the order dismissing its action and granting summary judgment to the defendant.
But while Trust has breached the formal requirements of
B. Subject Matter Jurisdiction
The district court dismissed this case because it concluded that the case was a “local action” which Trust should have brought in Georgia rather than Mississippi. Under the local action doctrine, a local action involving real property, as opposed to a transitory action, must be brought within the territorial boundaries of the state in which the land is located.
Hayes v. Gulf Oil Corp.,
The common law distinction between local actions and transitory actions finds its American roots in
Livingston v. Jefferson,
Since
Livingston,
the common law local action doctrine has become ingrained in American jurisprudence. State and federal courts alike have recognized and applied the rule.
See, e.g., Louisville & N.R.R. v. Western Union Telegraph Co.,
Trust argues that Mississippi law should determine whether the local action doctrine applies in this case. If this Court treated the local action doctrine in the same manner it treats other matters of jurisdiction and venue, then this argument would be incorrect.
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Federal law, not state law, usually controls the outcome of subject matter jurisdiction and venue disputes in federal court.
See
15 Wright, Miller & Cooper, Federal Practice and Procedure: Jurisdiction and Related Matters 2d § 3822, at 207 & n. 22 (1986).
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This Court, however, has maintained a questionable distinction between the local action doctrine and other matters of federal jurisdiction and venue. In
Chateau Lafayette Apartments, Inc. v. Meadow Brook National Bank,
The use of state law to determine whether a federal court can resolve a local action is difficult to support. The local action doctrine is “intimately related to federal jurisdiction and venue,” and should not be subject to different choice of law rules. Note,
Local Actions in the Federal Courts,
70 Harv.L.Rev. 708, 711 (1957). Chief Justice Marshall himself recognized as much in
Livingston v. Jefferson,
commenting that federal law should govern the local action doctrine just as it governs other procedural matters.
As we previously observed, Mississippi has rejected the common law local action doctrine. A Mississippi statute,
On two occasions, the Mississippi Supreme Court has appeared to retreat from its position that
Neither
Strickland
nor
Barnett,
however, abrogates
C. Statute of Repose
Concluding that the Mississippi statute of repose barred Trust’s claims, the district court granted summary judgment in favor
No action may be brought to recover damages for injury to property, real or personal, or for an injury to the person, arising out of any deficiency in the design, planning, supervision or observation of construction, or construction of an improvement to real property ... against any person, firm or corporation performing or furnishing the design, planning, supervision of construction or construction of such improvement to real property more than six (6) years after the written acceptance or actual occupancy or use, whichever occurs first, of such improvement by the owner thereof.
Trust contends that
1. Protection of Manufacturers
[7] Citing a litany of cases applying the law of states other than Mississippi,
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Plaintiff Trust complains that USG is not a protected actor under the Mississippi statute of repose. But while it is true that some states have denied repose protection to the manufacturers of defective building products, Mississippi is not one of those states.
2. Improvements to Real Property
Trust complains that the products USG manufactured—“asbestos-containing” fireproofing materials applied to the steel
3. Constitutionality of the Statute of Repose
The plaintiff complains that
III. CONCLUSION
The district court erred in concluding that it had no subject matter jurisdiction over this case. The court did not err, however, in granting summary judgment in favor of defendant USG. The Mississippi statute of repose bars Trust’s claims against the defendant. Since one of the district court’s two reasons for dismissing this case is valid, this Court must affirm the judgment of the district court.
AFFIRMED.
Notes
. Although not relevant here, an exception to this general rule exists when the United States or one of its officers or agencies is a party to the action, in which case the notice of appeal must be filed within sixty days after the entry of the judgment.
. A notice of appeal that a party files prior to the disposition of a
. The district court denied the plaintiffs “Motion to Reconsider” on February 1, 1991. The thirtieth day after the denial of this motion would have been March 3, 1991. However, March 3 was a Sunday. Under
. When a period of time prescribed under the rules of civil procedure is less than eleven days, "intermediate Saturdays, Sundays, and legal holidays shall be excluded in the computation."
. Unlike a dismissal under
. Interestingly, in
C.A. May Marine Supply Co. v. Brunswick Corp.,
The opinion in C.A. May Marine Supply is not inconsistent with the conclusion we reach in the instant case. In C.A. May the Court noted that the intent to appeal the "motion to disallow costs" was not apparent and, therefore, “prejudice to the adverse party is likely to result if review is granted.” Id. Conversely, in this case, it is clear that Trust intended to appeal the underlying summary judgment and dismissal. Moreover, the exercise of appellate jurisdiction over this case will not prejudice defendant USG: the defendant has briefed all of the issues in this appeal and was able to discuss these issues in oral argument.
. It is unclear whether the local action doctrine runs to the jurisdiction or the venue of a court.
Compare Hayes v. Gulf Oil Corp.,
. Curiously, defendant USG does not argue that federal common law governs the applicability of the local action doctrine, but rather argues that Georgia case law governs this determination. USG suggests that
Erie Railroad Co. v. Tompkins,
The defendant’s analysis is unpersuasive. Federal courts use the
Erie
doctrine to determine which
substantive
state laws control a lawsuit. The
Erie
doctrine does not help the federal courts determine which
procedural
laws control a lawsuit.
Raphael J. Musicus, Inc. v. Safeway Stores, Inc.,
. At least implicitly, the Court in
Hayes
acknowledged that the application of state procedural law in this situation was theoretically unsound. However, the Court refused to alter the rule it first announced in
Chateau Lafayette,
commenting that the result would be the same whether it applied state law or federal law.
Hayes,
. In deciding
Chateau Lafayette Apartments
and
Hayes,
this Court apparently relied upon erroneous dicta in
Huntington v. Attrill,
. The irony of this conclusion is not lost on the Court. While federal law, which recognizes the local action doctrine, would hold that the federal district court has no jurisdiction over this action, the law of Mississippi, which does not recognize the local action doctrine, insists that the federal district court does have jurisdiction over this action. The result of our procedural rule is that state law can confer jurisdiction on a federal court even when federal law would deny jurisdiction.
. We express no opinion whether the Georgia statute of repose, rather than the Mississippi statute of repose, should have governed the parties’ rights in this lawsuit.
See Allison v. ITE Imperial Corp.,
. Trust also contends that, even if
.
See, e.g., Luzadder v. Despatch Oven Co.,
. While the Mississippi Supreme Court has never expressly addressed the question whether
. Trust first raised its equal protection argument in the "Motion to Reconsider" it filed after the district court had granted summary judgment. As we noted earlier, this “Motion to Reconsider” constitutes a
We harbor some misgivings whether the bright-line Eighth Circuit rule is fair. For instance, if a defendant files a motion for summary judgment, and the district court grants a complete summary judgment before the plaintiff has an opportunity to respond, then a