Individually v. Ford Motor Co.

• Citation: 724 F.Supp.2d 575
• Decision Date: 09 July 2010
• Docket Number: Civil Action No. 4:09-1875-TLW.
• Parties: John Douglas BUTLER, as Personal Representative of the Estate of Jon Trevor Butler, deceased, and William Michael Prince, Individually, Plaintiffs, v. FORD MOTOR COMPANY, Continental General Tire Company, Continental Tire North America, Inc., and Snow Tire Company, Defendants.
• Court: U.S. District Court — District of South Carolina

724 F.Supp.2d 575

John Douglas BUTLER, as Personal Representative of the Estate of Jon Trevor Butler, deceased, and William Michael Prince, Individually, Plaintiffs,

v.FORD MOTOR COMPANY, Continental General Tire Company, Continental Tire North America, Inc., and Snow Tire Company, Defendants.

Civil Action No. 4:09-1875-TLW.

United States District Court, D. South Carolina,Florence Division.

July 9, 2010.

COPYRIGHT MATERIAL OMITTED.

James Edward Bell, III, Jeffrey Ryan Heiskell, J. Edward Bell III Law Office, Georgetown, SC, John S. Deberry, Florence, SC, for Plaintiffs.

Carmelo B. Sammataro, Joseph Kenneth Carter, Jr., Turner Padget Graham and Laney, Robert L. Reibold, Harry Clayton Walker, Jr., Walker and Reibold, Columbia, SC, Duke Raleigh Highfield, Benjamin Alexander Traywick, Brandt Robert Horton, Young Clement Rivers and Tisdale, Charleston, SC, for Defendants.

ORDER

TERRY L. WOOTEN, District Judge.

This matter is currently before the Court on Defendant Ford Motor Company's (hereinafter “Ford”) motion to dismiss Plaintiffs' second amended complaint (Doc. # 40); and on Defendant Snow Tire Company's (hereinafter “Snow Tire”) motion to dismiss (or transfer) this action. (Doc. # 38). Plaintiffs filed the instant action on July 14, 2009. Plaintiffs filed an amended complaint on August 10, 2009, and a second amended complaint on December 3, 2009, which alleges (1) strict liability claims against both Defendants Ford and Snow Tire; (2) a negligent design claim against Defendant Ford; (3) negligent failure to warn claims against Defendants Ford and Snow Tire; (4) negligence claims against Defendants Snow Tire, Continental General Tire Company and Continental Tire North America, Inc.; (5) claims for breach of the implied warranty of merchantability against Defendants Ford and Snow Tire; (6) a claim for breach of the implied warranty of fitness for a particular purpose against Defendant Snow Tire; (7) claims for misrepresentation against all Defendants; and (8) a claim for fraud against Defendant Ford. Subsequently, on December 14, 2009, Defendant Snow Tire filed the instant motion to dismiss (or transfer) currently before the Court. (Doc. # 38). On December 15, 2009, Defendant Ford filed its motion to dismiss Plaintiffs' second amended complaint (Doc. # 40). Plaintiffs filed a response in opposition to Defendant Ford's motion to dismiss on December 16, 2009. (Doc. # 41). On December 31, 2009, Plaintiffs filed a response in opposition to Defendant Snow Tire's motion to dismiss (or transfer). (Doc. # 46). Defendant Ford filed a reply to Plaintiffs' opposition on January 8, 2010. (Doc. # 49). Defendant Snow Tire filed a reply to Plaintiffs' opposition on January 11, 2010. (Doc. # 52). The Court heard oral argument on these motions from counsel on May 13, 2010. For the reasons set forth in this Order, Defendant Ford's motion to dismiss is granted, and Defendant Snow Tire's motion to transfer venue is granted.

Rule 12(b)(6) Standard

A motion to dismiss under Rule 12 tests the sufficiency of the complaint. Edwards v. City of Goldsboro, 178 F.3d 231 (4th Cir.1999). In general, a motion to dismiss for failure to state a claim should not be granted unless it appears certain that the plaintiff can prove no set of facts which would support its claim and would entitle it to relief. Mylan Laboratories, Inc. v. Matkari, 7 F.3d 1130 (4th Cir.1993). In considering a motion to dismiss, the court should accept as true all well-pleaded allegations and should view the complaint in a light most favorable to the plaintiff. Id. A court may dismiss a complaint only if it is clear that no relief could be granted under any set of facts that could be proved consistent with the allegations. Id. Accordingly, a Rule 12(b) (6) motion should only be granted if, after accepting all well-pleaded allegations in the plaintiff's complaint as true and drawing all reasonable factual inferences from those facts in the plaintiff's favor, it appears certain that the plaintiff cannot prove any set of facts in support of his claim entitling him to relief. Edwards v. City of Goldsboro, 178 F.3d at 231.

Facts

The following facts as pled in Plaintiffs' Second Amended Complaint are presumed true for purposes of the instant motions. In the summer of 2007, Plaintiffs, who were members of the band “Bottom of the Hudson,” (hereinafter “the Band”) were on a ten day concert tour, traveling through the south-east portion of the country in the subject E350 van. The van had retread tires supplied by the Defendant, Snow Tire. On or about July 26, 2007, the right rear tire of the van, purchased from Snow Tire, suffered a “de-tread,” and the Band was forced to utilize the spare tire on the vehicle until they could stop. They stopped at Defendant Snow Tire Company in Athens, Georgia where they purchased and had installed a replacement tire. On July 29, 2007, Plaintiff Prince, Plaintiff's Decedent, and others were traveling in the E350 through Sampson County, North Carolina when the left rear tire de-treaded. As the driver responded to the de-treading, the E350 rolled over several times before coming to rest in the right shoulder of the highway. During the roll-over event, two passengers were ejected from the E350, one of whom later died from injuries sustained in the rollover.

Law/Analysis as to Defendant Ford's Motion to Dismiss

The Court will initially address Defendant Ford's motion to dismiss. As to Defendant Ford, Plaintiffs allege strict liability, negligent design, negligent failure to warn, breach of implied warranty of merchantability, misrepresentation, and fraud claims; all stemming from Defendant Ford's design, testing, manufacture, and sale of the E350 van at issue in these proceedings. Defendant Ford asserts that because the substantive law of North Carolina applies and because North Carolina's statute of repose for products liability actions bars these claims, Plaintiffs have failed to assert claims against it upon which relief can be granted. Moreover, inasmuch as this accident occurred well after the expiration of the applicable statute of repose, Defendant Ford asserts that there was no valid claim for relief as of the date of filing of Plaintiffs' Second Amended Complaint. Accordingly, Defendant Ford asserts that it is entitled to an order dismissing Plaintiffs' claims against it in their entirety and with prejudice. In response, the Plaintiffs assert that although a complaint may be dismissed on statute of limitations grounds, and by analogy on statute of repose grounds, such action should be taken only if the complaint on its face shows that the action is time barred. Jones v. Bock, 549 U.S. 199, 127 S.Ct. 910, 166 L.Ed.2d 798 (2007). The Plaintiffs assert that applying these principles to each of the claims challenged by Ford under Rule 12(b)(6), the claims clearly state a cause of action. Specifically, Plaintiffs argue that as to the warranty claim against Ford, it is inconclusive on the allegations in the second amended complaint that North Carolina substantive law applies. Accordingly, Plaintiffs assert that Defendant Ford's motion to dismiss the second amended complaint should be denied. In reply to Plaintiffs' argument regarding the warranty claim, Ford asserts that Plaintiffs' allegations fail to state a valid claim for breach of any implied warranty under South Carolina law because Plaintiffs fail to allege that a sale of goods occurred sufficient to trigger application of South Carolina's Uniform Commercial provisions. In the alternative, Defendant Ford argues that even assuming arguendo that S.C.Code Ann. § 36-1-105 applies, that section would favor the application of North Carolina law and the dismissal of Plaintiffs' breach of implied warranty claims.

South Carolina law provides that the substantive law of the state in which an injury occurs controls a case brought within South Carolina's jurisdiction. “The substantive law governing a tort action is determined by the lex loci delicti, the law of the state in which the injury occurred.” Boone v. Boone, 345 S.C. 8, 546 S.E.2d 191, 193 (2001); see also Mizell v. Eli Lilly & Co., 526 F.Supp. 589, 594-95 (D.S.C.1981); Gattis v. Chavez, 413 F.Supp. 33, 35 (1976); Algie v. Algie, 261 S.C. 103, 198 S.E.2d 529 (1973); Oshiek v. Oshiek, 244 S.C. 249, 136 S.E.2d 303 (1964). “Procedural matters are to be determined in accordance with the law of South Carolina, the lex fori.” McDaniel v. McDaniel, 243 S.C. 286, 133 S.E.2d 809, 811 (1963) (noting lex fori to mean the law of the forum). Here, the accident at issue occurred in Sampson County, North Carolina. (Pl.2d Am. Compl. ¶ 18). Accordingly, this Court must apply the substantive law of North Carolina and the procedural law of South Carolina.

Plaintiffs' claims against Defendant Ford are premised on principles of products liability. At the time the instant cause of action accrued, North Carolina had a six-year statute of repose for products liability actions. ¹ N.C. Gen.Stat. Ann. § 1-50 (1996) (“No action for the recovery of damages for personal injury, death or damage to property based upon or arising out of any alleged defect or any failure in relation to a product shall be brought more than six years after the date of initial purchase for use or consumption”); National Property Investors, VIII v. Shell Oil Co., 950 F.Supp. 710 (E.D.N.C.1996) (discussing the statute's applicability in relation to a defective plumbing system claim); Bolick v. American Barmag Corp., 306 N.C. 364, 293 S.E.2d 415 (1982) (discussing the statute's applicability in relation to a defective yarn crimping machine claim); Davidson v. Volkswagenwerk, A.G., 78 N.C.App. 193, 336 S.E.2d 714 (N.C.Ct.App.1985) review denied 316 N.C. 375, 342 S.E.2d 892 (1986) (applying the statute to defective automobile claim). “Whether a statute of repose is a substantive or procedural matter is the deciding factor in what law applies.” Nash v. Tindall Corp., 375 S.C. 36...