Mason v. Spiegel, Inc.
| Decision Date | 01 February 1985 |
| Docket Number | Civ. No. 4-83-363. |
| Citation | 610 F. Supp. 401 |
| Parties | Delthea MASON, Plaintiff, v. SPIEGEL, INC., Defendant and Third-Party Plaintiff, v. ANDOVER TOGS, INC., a foreign corporation, Park Avenue Imports, Inc., an Illinois corporation, Park Avenue Overseas Corporation, a foreign corporation, Mitsui & Company USA, Inc., a New York corporation, and Ina Fashions, Inc., a foreign corporation, Third-Party Defendants. |
| Court | U.S. District Court — District of Minnesota |
Frank W. Levin, Minneapolis, Minn., and Richard Baldwin, Webster & Baldwin, St. Paul, Minn., for plaintiff.
James T. Martin, Gislason and Martin, Edina, Minn., for defendant and third-party plaintiff.
Heidi M. Hoard, Faegre & Benson, Minneapolis, Minn., and Michael Ryan, Murnane, Conlin, White, Brandt & Hoffman, St. Paul, Minn., for third-party defendants.
Plaintiff, Delthea Mason, a Minnesota resident, brought this action for compensatory and punitive damages against defendant Spiegel, Inc. (Spiegel), an Illinois corporation, alleging strict liability, breach of warranties and negligence in the sale of an unreasonably flammable cotton gingham tennis dress. Jurisdiction is alleged under 28 U.S.C. § 1332. Spiegel brought a third-party complaint against Andover Togs, Inc. (Andover), Park Avenue Imports, Inc., a/k/a Park Avenue Overseas Corporation (collectively referred to as Park Avenue), Mitsui & Company (U.S.A.) (Mitsui), and Ina Fashions (Ina). Spiegel alleges that it bought the dress from one of the third-party defendants and resold it without modification, making one of these parties liable for contribution or indemnification. The matter is now before the court upon Spiegel's motion for dismissal, or, alternatively, for summary judgment, and third-party defendants Park Avenue and Mitsui's joint motion for summary judgment. Andover has also filed a motion for summary judgment.
There appears to be little dispute about the facts. In 1968, plaintiff was severely burned when her woven gingham checked tennis dress caught fire from a burning match. The accident occurred in North Carolina when plaintiff was five years old, and she was hospitalized there for several months. Plaintiff and her parents were residents of Minnesota when the accident occurred, but were living in North Carolina where plaintiff's father was serving in the army. The family returned to Minnesota in 1970 and have resided here ever since, apart from a four year stay in Georgia.
Plaintiff states that her parents did not know that they could have brought suit on her behalf during her minority. Before turning 21 on August 4, 1983, plaintiff contacted legal counsel. Suits were begun against Spiegel on May 5, 1983 in Minnesota, on June 7, 1983 in Illinois, and on June 9, 1983 in North Carolina. Plaintiff's counsel began suit in three jurisdictions because of uncertainty as to which was appropriate. It is undisputed that the North Carolina statute of limitations had not run when the suit was commenced.
In each suit, plaintiff claimed that the dress had been purchased from Spiegel in the spring of 1968 and that, among other things, it was unreasonably flammable, unmerchantable and unfit for its intended purpose. Plaintiff also charged that Spiegel failed to exercise ordinary care in placing the dress on the market. Plaintiff does not have any documents proving purchase, nor is any portion of the dress still in existence.
On February 9, 1984, an order was entered which dismissed the North Carolina case; the Illinois case had been previously dismissed on January 27, 1984. Plaintiff now contends that these dismissals were ordered because Spiegel chose to appear in Minnesota, claiming that it would be cheaper and more convenient to litigate in Minnesota, and appearing to concede that the North Carolina statute of limitations had not run. Spiegel claims that plaintiff's suit is barred by the Minnesota statute of limitations.
On March 1, 1984, Spiegel brought its suit for contribution or indemnity against the third-party defendants. It admits that it has no records from the period 1966 through 1968 which establish the identity of the manufacturer or supplier of the tennis dress. Spiegel relies on testimony of two persons formerly employed by Spiegel who have stated that to the best of their recollection, the garment would have been purchased from Andover, Park Avenue, or Ina, but could not specify which of them was the actual manufacturer.
Ina went out of business 10 years ago and has not answered Spiegel's third-party complaint. Mitsui and Park Avenue claim that they have conducted an extensive search of their records and have found no evidence of a sale of the dress or any similar garment to Spiegel. Andover denies ever manufacturing, importing, or selling any such tennis dress at all.
Spiegel contends that plaintiff's suit is not timely under the Minnesota statute of limitations. It argues that statutes of limitations are procedural rather than substantive and that the law of the forum governs with respect to procedural rules. Accordingly, Spiegel maintains that N.C.Gen.Stat. § 1-17, which tolls the running of the statute of limitations in personal injury suits until three years after the injured infant reaches the age of 18, is inapplicable. The appropriate period, it argues, is governed by Minn.Stat. §§ 541.05 and 541.15, which toll the running of the six year statute of limitations for personal injuries during infancy and grant one additional year in which to bring suit after the infant turns 18. Plaintiff turned 18 on August 4, 1981, but did not bring suit in Minnesota until May 5, 1983. Spiegel contends that her claim is therefore barred.
Plaintiff, by contrast, asserts that Spiegel waived its right to raise the statute of limitations by suggesting that the action proceed in Minnesota. She argues that it would be unconscionable to allow Spiegel to assert the statute of limitations defense after plaintiff has relied on its actions and allowed the timely North Carolina suit to be dismissed, rather than bringing a motion to transfer. In addition, plaintiff contends that the North Carolina statute regarding limitation periods for minors is substantive in nature and that application of Minnesota's five-factor choice-of-law analysis dictates that North Carolina law apply. Under N.C.Gen.Stat. § 1-17, plaintiff's claims were not time-barred until August 4, 1983, three months after the Minnesota suit was filed.
Equitable estoppel can be invoked to prevent a party from taking unconscionable advantage of his or her actions. Bethesda Lutheran Church v. Twin City Constr., 356 N.W.2d 344 (Minn.App.1984). To rely on this doctrine, plaintiff must show that defendant made representations or inducements upon which plaintiff reasonably relied that will cause plaintiff harm if estoppel is not found. Northern Petrochemical Co. v. U.S. Fire Insurance Co., 277 N.W.2d 408, 410 (Minn.1979). Bad faith or an intent to deceive is generally not essential to create an estoppel against enforcement of limitation periods. 51 Am. Jur.2d Limitation of Actions, § 450. Nor is it necessary that there be an express mention of, or agreement about, the statute of limitations. Albachten v. Bradley, 212 Minn. 359, 3 N.W.2d 783 (1942). Whether the elements of equitable estoppel are present is a question of fact. See O'Donnell v. Continental Casualty Co., 263 Minn. 326, 116 N.W.2d 680 (1962).
In the instant case, both sides are in essential agreement as to the facts underlying the estoppel claim. Plaintiff does not contend that counsel for Spiegel deliberately attempted to deceive or that there was an express agreement or promise that Spiegel would waive the statute of limitations. Rather, plaintiff claims that opposing counsel appeared by his actions to concede that the action was maintainable in Minnesota, and that transfer was an unnecessary ritual.
The evidence shows that after Spiegel failed to appear in North Carolina or Illinois, those courts urged plaintiff to proceed on a default basis or have its case dismissed. Plaintiff's counsel states that he thought it inappropriate to default Spiegel when they were actively litigating the claim in Minnesota and he informed Spiegel's counsel of the court's wishes. Spiegel's counsel suggested that the North Carolina and Illinois suits be dismissed because they were duplicative, an unnecessary expense, and because Minnesota was the most convenient forum for the suit.
Counsel for the defense also stated during a discussion of the North Carolina statute of limitations at a December 2, 1983 deposition of plaintiff, that plaintiff "sure is lucky this accident happened in North Carolina and not in Minnesota." At no time before plaintiff's twenty-first birthday did defense counsel state that the Minnesota, rather than the North Carolina, statute of limitation was controlling.
Plaintiff's counsel would not have dismissed the North Carolina and Illinois actions but for the actions of Spiegel's counsel in suggesting that suit be brought in Minnesota and in implying that North Carolina law controlled. This reliance clearly harms plaintiff. If estoppel is not found, plaintiff will presumably lose any chance of compensation for her severe injuries. Under these circumstances, the elements of equitable estoppel are satisfied. Because of this determination it is not necessary to reach plaintiff's other argument.2
Park Avenue, Mitsui and Andover Togs claim that they are entitled to summary judgment against Spiegel because it cannot identify which third-party defendant sold it the tennis dress.3 They argue that the sole basis for Spiegel's claims against the third-party defendants is the 18-year old recollection of a former merchandise manager and a former buyer of Spiegel who think that the dress...
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