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McClanahan v. American Gilsonite Co.

Citation: 494 F. Supp. 1334Docket: Civ. A. No. 77-C-1127

Court: District Court, D. Colorado; July 21, 1980; Federal District Court

Narrative Opinion Summary

This case involves multiple plaintiffs seeking damages for personal injuries and wrongful death following an oil refinery accident. Initially filed in state court and later moved to federal court, the case involves claims against several entities, including Socal and CRC, connected to the refinery's original design and operation. The primary legal issues revolve around the statute of limitations applicable to the claims, with the wrongful death claims governed by section 13-21-204, C.R.S.1973, instead of section 13-80-127, which covers personal injury claims. The court ruled that the wrongful death statute applies, allowing these claims to proceed, but found the section 13-80-127 unconstitutional due to arbitrary classifications granting certain construction parties immunity. Additionally, the court dealt with issues around the relation back doctrine under Rule 15(c) and the tolling of limitations for claims by minors. Summary judgment was granted in part, dismissing breach of warranty and strict liability claims against Gilsonite, as the refinery was not deemed a 'product' under the UCC. The court continues to assess the remaining claims, particularly focusing on procedural and constitutional challenges posed by the defendants. The outcome reflects complex interplay between statutory interpretation and constitutional law, impacting the plaintiffs' ability to recover damages.

Legal Issues Addressed

Breach of Warranty Claims under UCC

Application: The court found that the sale of the refinery did not involve 'goods' under the UCC, thus dismissing the breach of warranty claims against Gilsonite.

Reasoning: The contract did not envision severability of the refinery components, as noted in relevant case law.

Constitutionality of Statute of Limitations for Property Improvements

Application: The court found section 13-80-127 unconstitutional as it creates unjust classifications, granting certain construction industry participants immunity without reasonable justification.

Reasoning: The court concludes that the more reasoned position is that of the courts striking down these statutes, which grant immunity to specific defendants without reasonable justification.

Relation Back Doctrine under Rule 15(c)

Application: Plaintiffs failed to demonstrate that amendments to add Socal and CRC as defendants relate back to the original complaint's filing date due to lack of notice within the statutory period.

Reasoning: The plaintiffs argue that, under F.R. Civ. P. 15(c), the amendments adding these defendants relate back to the original complaint's filing date, as the claims arose from the same transaction and the defendants were sufficiently notified of the action to avoid prejudice.

Statute of Limitations in Wrongful Death Claims

Application: The court determined that wrongful death claims are governed by section 13-21-204, C.R.S.1973, rather than section 13-80-127, which pertains to personal injury claims, allowing Margaret T. Morris' claims to proceed under the appropriate statute.

Reasoning: The wrongful death claims filed by Margaret T. Morris and her family are governed by section 13-21-204, C.R.S.1973, which they assert is the proper statute of limitations rather than section 13-80-127, which pertains to personal injury claims.

Strict Liability and Definition of 'Product'

Application: The court dismissed the strict liability claim against Gilsonite, finding that the refinery did not qualify as a 'product' under Colorado's adoption of the Restatement (Second) of Torts § 402A.

Reasoning: Regarding strict liability claims, Gilsonite argues that the plaintiffs cannot recover under this theory as Colorado has adopted the Restatement (Second) of Torts § 402A, which holds sellers liable for defective products causing harm.

Tolling of Statute of Limitations for Minors

Application: The court accepted that claims by the decedent's children, Scott and Laura Morris, could proceed due to the tolling provision under section 13-81-103, C.R.S.1973, which allows for extensions when the claimant is a minor.

Reasoning: Nonetheless, the plaintiffs argue that claims made by the decedent's children, Scott and Laura Morris, remain valid due to the tolling period outlined in section 13-81-103, C.R.S.1973, which applies when the true owner of a right is under disability, such as minors.