Precision Gear Company, Precision Gear LLC, and General Metal Heat Treating, Inc. v. Continental Motors, Inc.

Summary

The court held that Alabama's two-year statute of limitations for tort actions, rather than its six-year limitations period for contract actions, governs the noncontractual indemnity claims because Alabama law controls the characterization of the claims for limitations purposes. The claims were therefore time-barred, requiring reversal of the order denying dismissal and remand for dismissal of the indemnity claims. The court also denied Continental Motors' motion to dismiss the interlocutory appeal based on the gear manufacturers' later-filed counterclaim. Justices Murdock and Shaw, dissenting, would have treated the claims as contract claims under Oklahoma substantive law and applied Alabama's six-year limitations period.