Opinion

Valerie Cortez v. Cook Incorporated

  • 27 F.4th 563
Court
Court of Appeals for the Seventh Circuit
Filed
Mar 2, 2022
Status
Published
On the bench
Rovner
Nature of suit
civil
Cited by
2 cases
Authority
More cited than 52.3%

The opinion

In the

United States Court of Appeals

For the Seventh Circuit

____________________

No. 20‐3434

VALERIE CORTEZ,

Plaintiff‐Appellant,

v.

COOK INCORPORATED, et al.,

Defendants‐Appellees.

____________________

Appeal from the United States District Court for the

Southern District of Indiana, Indianapolis Division.

No. 1:20‐cv‐00896‐RLY‐TAB — Richard L. Young, Judge.

____________________

ARGUED MAY 26, 2021 — DECIDED MARCH 2, 2022

____________________

Before EASTERBROOK, ROVNER, and HAMILTON, Circuit

Judges.

ROVNER, Circuit Judge. Valerie Cortez brought a number of

claims against Cook Incorporated, Cook Medical, LLC, and

William Cook Europe APS (hereinafter “Cook”), alleging that

she was injured by an Inferior Vena Cava Filter called the

Gunter Tulip Vena Cava Filter (the “Filter”), which was im‐

planted in her on December 14, 2006. The Filter was designed

and manufactured by the defendants for the prevention of

2 No. 20‐3434

pulmonary embolisms. Cortez’s action was part of the consol‐

idated proceedings in In re: Cook Medical, Inc. Filters Marketing,

Sales Practices and Product Liability Litigation, MDL No. 2570.

Accordingly, Cortez filed a Short‐Form Complaint that incor‐

porated counts from the Master Consolidated Complaint for

Individual Claims, and alleged causes of action for product

liability, negligence, breach of express and implied warranty,

and violations of Oregon’s Unlawful Trade Practices Act.

Only the product liability claims are at issue in this appeal.

Cook moved for judgment on the pleadings pursuant to

Federal Rule of Civil Procedure 12(c) as to the product liabil‐

ity claims, arguing that the claims were filed beyond the time

period in the statute of repose of Cortez’s home state, Oregon.

Cortez countered that the Oregon statute incorporates Indi‐

ana law, which allows for equitable tolling of the limitations

period, and that the complaint sufficiently alleged a right to

such tolling under the doctrine of fraudulent concealment.

She alleged that the defendants knew their product was de‐

fective, that they, through affirmative misrepresentations and

omissions, actively concealed the significant risks associated

with the Filter, and that the conduct constituted fraudulent

concealment. She also alleged that the defendants continued

to promote the Filter as safe and effective even though inade‐

quate clinical trials had been performed to support that safety

or efficacy.

The defendants sought judgment on the pleadings. The

district court granted that motion to dismiss the claims as un‐

timely, holding that the allegations in the complaint were in‐

sufficient to demonstrate fraudulent concealment and there‐

fore the statute was not tolled. Cortez has now appealed that

judgment to this court.

No. 20‐3434 3

Cortez was a resident of Oregon at the time of the place‐

ment of her Filter as well as at the time of the injury and the

filing of the lawsuit. The parties agree that her product liabil‐

ity claim is therefore governed by Oregon law, and also agree

that the Indiana limitations period is the relevant focus here

because of the language of Oregon’s product liability statute,

Or. Rev. Stat. § 30.905(2). That Oregon statute provides:

A product liability action for personal injury or

property damage must be commenced before

the later of

(a) Ten years after the date on which the prod‐

uct was first purchased for use or consump‐

tion, or

(b) The expiration of any statute of repose for an

equivalent civil action in the state in which the

product was manufactured ….”

(emphasis added)

The defendants in this case are Indiana entities operating

in Indiana, and therefore we must consider whether the Indi‐

ana statute of repose provides for a longer period of time than

Oregon’s ten‐year statute of repose. The Indiana statute of re‐

pose for product liability actions provides for a time period

that could extend up to two years beyond the 10‐year Oregon

period, providing:

(c) Except as provided in section 2 of this chap‐

ter [regarding asbestos‐related actions], a

product liability action must be commenced:

…

(2) within ten (10) years after the delivery of the

product to the initial user or consumer.

4 No. 20‐3434

However, if the cause of action accrues at least

eight (8) years but less than ten (10) years after

that initial delivery, the action may be com‐

menced at any time within two (2) years after

the cause of action accrues.

Ind. Code § 34‐20‐3‐1(b).

Under that Indiana provision, Cortez could have as long

as 12 years in which to commence the product liability claim,

if the cause of action accrued near the ten‐year mark after the

initial delivery. In that circumstance, Cortez would have been

required to initiate the action by December 14, 2018, but the

action in this case was not filed until more than 15 months

later, on March 19, 2020. The only issue in this appeal is

whether the district court erred in holding that the filing was

untimely.

Cortez argues that the action is timely because Cook’s

fraudulent concealment operated to toll the statute of repose.

“The doctrine of fraudulent concealment is an equitable rem‐

edy that bars a statute‐of‐limitations defense when the de‐

fendant who invokes it prevented the plaintiff from discover‐

ing an otherwise valid claim.” Blackford v. Welborn Clinic, 172

N.E.3d 1219, 1229 (Ind. 2021); Lyons v. Richmond Cmty. Sch.

Corp., 19 N.E.3d 254, 260 (Ind. 2014). Fraudulent concealment

can be active, involving affirmative acts of concealment in‐

tended to mislead, or passive, involving the failure to disclose

material information when there is a duty to disclose. Black‐

ford, 172 N.E.3d at 1229.

The district court held that Cortez had failed to establish

fraudulent concealment. Specifically, the court held that the

complaint failed to sufficiently allege fraudulent concealment

No. 20‐3434 5

in that it did not allege affirmative actions to prevent the dis‐

covery of a cause of action, did not allege that the Filters were

ever recalled, and did not allege that Cook communicated di‐

rectly to Cortez in a misleading way about the risks associated

with the Filters or knew that she was injured and took steps

to prevent the timely filing of an action. Cortez argues on ap‐

peal that the court erred in its assessment of what constitutes

fraudulent concealment.

At oral argument, we raised the question as to whether the

doctrine of fraudulent concealment even applies to statutes of

repose, and requested supplemental briefing on that issue. In

that briefing, Cortez acknowledged that the Indiana Supreme

Court had not yet addressed whether fraudulent concealment

applies to statutes of repose, but argued that its opinions ap‐

plying fraudulent concealment to other non‐claim statutes

strongly suggested that it would apply to statutes of repose.

Since the supplemental briefing, however, the Indiana Su‐

preme Court in Blackford weighed in on the matter, and its

holding is dispositive of this appeal. It held that for a statute

of repose, as opposed to a general statute of limitation,

“fraudulent concealment may not extend the time in which to

file a claim.” Id. at 1221. In so holding, the court discussed the

differences between statutes of repose and other limitations

provisions. The court held that general statutes of limitation

create a defense to an action after the time allowed for bring‐

ing the action expires, and principles of equity preclude a

party from invoking that defense when that party’s own

fraud or misconduct has prevented the timely filing of the

lawsuit. Id. at 1224. Statutes of repose, however, “’mark the

outer boundaries of substantive legal rights because they limit

the time during which a cause of action can arise … [i.e.] no

6 No. 20‐3434

cause of action exists once the repose period expires.’” Id. at

1224–25, quoting Gill v. Evansville Sheet Metal Works, Inc., 970

N.E.2d 633, 637 n.4 (Ind. 2012). Such a provision “acts as a

substantive bar to a legal claim ’after a specified period of

time has run from the occurrence of some other event other

than the injury which gave rise to the claim.’” (emphasis in

Blackford) Id. at 1225, quoting Kissel v. Rosenbaum, 579 N.E.2d

1322, 1326 (Ind. Ct. App. 1991).

The court recognized that a statute of repose could thereby

bar an action before it even accrues, thus depriving the claim‐

ant of a remedy. Id. But the court noted that the reason for that

“strict prohibition” was not to avoid stale evidence, but to de‐

lineate a specific time frame in which the legislature has

deemed it appropriate to bring a claim. Id. Accordingly, “by

vesting in the defendant a substantive grant of immunity once

the period expires, statutes of repose—absent express lan‐

guage to the contrary—supersede or ‘override’ equitable

rules of tolling.” Id.

Although the Blackford court held that for a statute of re‐

pose, fraudulent concealment “may not extend the time in

which to file a claim,” the court also noted the “rare case” in

which Indiana courts had made an exception, including for

instances of fraud. Id. at 1228. The court considered that as an

alternative, hypothetical application, first holding that the

claim in Blackford was untimely because fraudulent conceal‐

ment cannot toll a statute of repose, and then holding that

“even if” the limitations period were subject to tolling, it was

inapplicable because it involved only passive and not active

fraud. Id. at 1230. That hypothetical discussion might have left

open the possibility for an exception to be recognized in the

No. 20‐3434 7

future. And the court had already noted that its holding ap‐

plied to statutes of repose “absent express language to the

contrary.” Id. at 1225. But the holding of the court, that fraud‐

ulent concealment does not toll statutes of repose, was un‐

qualified.

Here, the parties agree that the provision at issue is a stat‐

ute of repose, and that characterization is consistent with the

language of the statute, which begins the running of the time

period “at the date of delivery of the product.” See id. at 1225,

quoting Kissel, 579 N.E.2d at 1326 (noting that a characteristic

of statutes of repose is that they “act as a substantive bar to a

legal claim ’after a specified period of time has run from the

occurrence of some other event other than the injury which

gave rise to the claim’”) (emphasis in Blackford). The Indiana

Supreme Court’s holding that the statute of repose is not sub‐

ject to equitable tolling claims of fraudulent concealment is

unequivocal. The court holds as much at four different points

in its opinion. Id. at 1221, 1223, 1228, 1231. Its discussion re‐

garding the possibility of tolling in rare cases presenting ex‐

ceptions is hypothetical. Our task is to identify how the Indi‐

ana courts would interpret the law, and that means that we

will take the Indiana Supreme Court at its word and give ef‐

fect to its unequivocal holding. Because the product liability

claims in this case are subject to a statute of repose, and fraud‐

ulent concealment cannot extend the time to file claims for

such a statute, the claims in this case are untimely.

The decision of the district court is AFFIRMED.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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