Marshall Garber v. Heriberto Menendez, M.D.
Opinion
Minors injured by medical malpractice in Ohio have one year to sue their doctors after they turn eighteen. When Marshall Garber sued Dr. Heriberto Menendez for malpractice in May 2017, one year had come and gone. But Ohio tolls the statute of limitations if the defendant leaves the State. The clock stopped when Dr. Menendez left Ohio for Florida and stayed stopped when he chose to retire there. That differential treatment of residents and non-residents, says Dr. Menendez, violates the dormant Commerce Clause of the United States Constitution by disincentivizing individuals from leaving Ohio and offering their services (or retirement spending) in other States. But the Ohio tolling provision does not discriminate against out-of-state commerce any more than many other policy benefits reserved for residents of a given State, including the existence of an income tax for Ohioans but not for Floridians. We reverse.
I.
In 2010, Dr. Menendez treated fifteen-year-old Garber for a fever, constipation, and back pain. The treatment did not go well. Garber became a paraplegic.
Garber's first two attempts to sue Dr. Menendez failed. The state court dismissed Garber's initial lawsuit because he failed to file an affidavit from an expert witness in support of his claim. See Ohio Civ. R. 10(D)(2). In his second lawsuit, Garber tried to serve Dr. Menendez at his Ohio office, but (unbeknownst to him) Dr. Menendez had retired to Florida by then. Garber voluntarily dismissed the lawsuit due to lack of service.
Garber sued Dr. Menendez a third time in May 2017, and properly served him. Garber acknowledged that Ohio provides a one-year statute of limitations for medical malpractice claims. See Ohio Rev. Code § 2305.113. And he acknowledged that the limitations period began running on August 5, 2013, when he turned eighteen. See id. § 2305.16. But his lawsuit remained timely, he explained, because Ohio tolls the statute of limitations when the defendant "departs from the state." See id. § 2305.15. Dr. Menendez left Ohio for Florida in April 2014, and he has not returned.
Dr. Menendez removed the lawsuit to federal court. He filed a motion to dismiss, arguing that Ohio's tolling rules violated the dormant component of the Commerce Clause as applied to him. The district court agreed and dismissed Garber's complaint.
II.
A.
"[A] page of history is worth a volume of logic,"
N.Y. Tr. Co. v. Eisner
,
For the first century and a half of American history, the States could not authorize their courts to impose liabilities upon people over whom they had no control. The "foundation of jurisdiction" being "physical power,"
McDonald v. Mabee
,
Pennoyer v. Neff
converted this common law rule into a constitutional command. It construed the Due Process Clause to mean that one State could not compel a party residing in another State to respond to a lawsuit.
The common law rule and
Pennoyer
created a practical problem. Defendants might commit wrongs against a State's residents and avoid liability by leaving the State and waiting for the statute of limitations to expire.
Meyer v. Paschal
,
Ohio joined this crowd early. Seven years after Ohio became a State in 1803, its legislature enacted a law that tolled the statute of limitations "when any person or persons against whom there is cause of action[ ] shall have left the state." An Act for the Limitation of Actions, ch. 213, § 2 (1810), reprinted in 1 The Statutes of Ohio and of the Northwestern Territory 656 (Salmon P. Chase, ed., 1833).
The premises of these policies and constitutional rulings shifted over time. By the early Twentieth Century, new modes of transportation and communication meant that many businesses sold their products in many States, not just one, and that most individuals could travel readily between and among the States.
Cue
International Shoe
. It held that the Due Process Clause no longer required in-state personal service on defendants for a state court to exercise personal jurisdiction over them.
Int'l Shoe Co. v. Washington
,
This change in law changed the policy calculus for tolling statutes of limitations, as the most salient justification for tolling the statute of limitations against out-of-state defendants no longer existed. Some state legislatures as a result amended their tolling statutes to apply only if their long-arm statute-usually construed to extend as far as the Due Process Clause permitted-could not reach the out-of-state defendant.
See, e.g.
, 735 Ill. Comp. Stat. 5/13-208 ;
But several States, including Ohio, did not alter their tolling statutes, whether via amendment or interpretation. The tolling laws of Ohio thus work today the way they always have worked.
Seeley v. Expert, Inc.
,
In the face of these moving and non-moving parts, one other consideration deserves mention: The meaning of the Commerce Clause of the United States Constitution has not stood still. In granting Congress power "[t]o regulate Commerce ... among the several States," U.S. Const., art. I, § 8, cl. 3, the Constitution implied that the States had no such power.
See
2 The Records of the Federal Convention of 1787, at 625 (Max Farrand ed. 1966) (James Madison grew "more & more convinced" that the regulation of commerce among the States "was in its nature indivisible and ought to be wholly under one authority."). Hence the creation of a negative, implied, dormant limitation on the States' power to regulate interstate commerce. For much of American history, a challenge to a state or federal regulation thus required courts to police the boundary between Congress's exclusive sphere of regulation and the States' exclusive sphere.
See
Gibbons v. Ogden
, 22 U.S. (9 Wheat.) 1, 187-89, 197-200,
Not so today. Over time, the lines between the separate spheres blurred, "in part because the nature of commerce changed, in part because the Supreme Court's interpretation of the Commerce Clause changed."
Am. Beverage Ass'n v. Snyder
,
All of this changed the nature of dormant Commerce Clause review. It was once essential to keep each governmental authority-the Federal Government and the States-in their separate spheres. In a world of largely overlapping authority over interstate commerce, that imperative no longer drives the analysis. Through it all, from the founding to today, Congress retains power to police and correct discrimination against multi-state commerce on its own by preempting state laws that interfere with interstate commerce.
B.
Courts generally reserve dormant Commerce Clause review for laws that protect in-state economic interests at the expense of out-of-state competitors. Unconstitutional "economic protectionism,"
McBurney v. Young
,
The Ohio law clears each of these hurdles. Dr. Menendez does not claim that the law explicitly discriminates against interstate commerce. For good reason. On its face, the tolling statute bears none of the hallmarks of facial discrimination. It draws no distinctions based on residency. The law applies to an Ohio resident who commits a tort in Ohio just as it applies to a Michigan resident who does the same.
Johnson v. Rhodes
,
The law, it is true, by its nature will affect out-of-state residents more often than in-state ones. But that reality does not establish a cognizable form of discrimination if the statute otherwise treats similarly situated in-state and out-of-state entities the same.
General Motors Corp. v. Tracy
,
What of the possibility that Ohio's tolling statute has a protectionist purpose or effect?
See
Hunt
,
Nor does the law's surface neutrality disguise a cognizable protectionist effect. The Ohio tolling statute does not operate like an embargo on interstate commerce while leaving intrastate transactions unhindered. The law at issue in
Hunt
offers a
revealing contrast.
What of the possibility that the law violates the more deferential review established by Pike balancing? Here is Dr. Menendez's theory. The law violates Pike , he says, by starting the statute of limitations clock when an itinerant Ohioan commits a tort in Ohio and by stopping the clock when he leaves the State before the statute of limitations expires. In this way, he explains, the law discourages Ohio residents from moving by adding a cost to relocating and by depriving other States of the commercial benefits that new residents might bring. We don't see it.
Start with the stops. Many state benefits stop when a resident leaves a State. Texans do not pay a state income tax but lose that benefit when they move. Floridians do not pay an estate tax but lose that benefit when they move. Many States offer their residents-and their residents alone-an in-state tuition break for attendance at the State's universities. Some States have higher minimum-wage laws than others. Some States have lower licensing fees than others. And some States charge higher licensing fees for out-of-state residents. Just ask a fisherman.
All
of these policy choices (and many more) provide benefits to residents that the residents put in jeopardy if they move. In truth, States discourage residents from leaving whenever they provide residents with policies they like. That indeed is the point of the benefits. But the States' ability to attract and retain residents through policy choices has long been considered a healthy byproduct of the laboratories of democracy in our federalism-based system of government, not a sign of unconstitutional protectionism.
See
Evenwel v. Abbott
, --- U.S. ----,
That is the central lesson we take from
McBurney v. Young
,
Just so here. Ohioans faced with a medical malpractice lawsuit benefit from the one-year statute of limitations if they remain in the State. That does not fit within the "common thread" of the Court's dormant Commerce Clause cases.
Even if discouraging residents from relocating could be considered a potential cognizable burden on interstate commerce (a doubtful proposition), we have no way of assessing that burden. The case ended at the motion-to-dismiss stage, at Dr. Menendez's request, and thus neither he nor anyone else offered any proof on the point. Nor is it obvious what such evidence would show. Keep in mind that the statute of limitations period is short: just one year. In that setting, it's fair to wonder how many Ohio doctors, including Dr. Menendez, would alter (or have altered) their retirement plans based on any tolling of the statute of limitations. Dr. Menendez suggests, without proof, that this long-standing law has dissuaded many Ohio doctors from retiring to Florida. But the North to South traffic on Interstate 75, we suspect, provides a long proof to the contrary, and the invalidation of this tolling provision, we also suspect, would not hasten that traffic.
But our conjecture is no better than Dr. Menendez's conjecture. Each is no replacement for the kind of proof of real burdens, as opposed to "hypothetical" burdens, needed to support such a challenge.
Assoc. Indus. of Mo. v. Lohman
,
Dr. Menendez separately argues that the Ohio law "encumbered" his right to "move freely" from Ohio to Florida. Appellee's Br. 14. But that is not a dormant Commerce Clause argument. It is an argument that Ohio burdened his "right to travel" under the Constitution.
See
Saenz v. Roe
,
The Privileges and Immunities Clause does not advance the doctor's argument either. The Clause prohibits States from denying out-of-state residents "fundamental" rights provided to their own residents.
McBurney
,
Even so, Dr. Menendez claims that two cases support his position:
Edwards v. California
,
Edwards
held that a California law banning the transportation of indigent people into the State violated the Commerce Clause.
Bendix
offers the most support for the doctor's position because it involves the same Ohio law-as applied to an out-of-state company. But it does not carry the water needed to invalidate this law. An Illinois company (Midwesco) agreed to install a boiler system for an Ohio company (Bendix) in one of its Ohio facilities.
But the tolling statute does not impose a cost on a traditional interstate business transaction in the same way in today's case. At the time of the medical/business transaction, Dr. Menendez lived in Ohio, and he treated Garber, an Ohio resident, in Ohio. That application of the statute does not lead to favoritism toward in-state firms over out-of-state ones. It merely creates a benefit for residents of Ohio. As with the public records benefit provided to Virginia residents-and only Virginia residents-it does not "prohibit[ ] access to an interstate market" or "impose[ ] burdensome regulation on that market."
McBurney
,
Dr. Menendez adds one last point-that the tolling statute should be invalidated because it serves no useful purpose. Ohio has a valid long-arm statute, and he remains amenable to service under it. Ohio Rev. Code § 2307.382.
International Shoe
, he argues, thus has eclipsed any valid purpose once served by the law. But just because due process no longer stands as a barrier to haling an out-of-state defendant to court does not mean that practical challenges no longer exist. When an in-state defendant moves out of the State, as the facts of this case illustrate, the defendant "remains potentially difficult to locate" and
"may not be so easy to find and serve."
G. D. Searle & Co. v
.
Cohn
,
For these reasons, we reverse and remand the case for further proceedings.
Reference
- Full Case Name
- Marshall GARBER, Plaintiff-Appellant, v. Heriberto MENENDEZ, M.D., Defendant-Appellee.
- Cited By
- 22 cases
- Status
- Published