Bendix Autolite Corp. v. Midwesco Enterprises, Inc.

486 U.S. 888 (1988)

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Nature of the Case

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Facts

Bendix sued Midwesco for breach of contract. Bendix claimed Midwesco had not honored its contract for installation of a boiler system. Bendix is an Ohio corporation whereas Midwesco is an Illinois corporation. An Ohio statute imposes a four-year statute of limitations for breach of contract actions. However, this period is tolled when the Defendant Corporation or person is resident outside of Ohio. When Midwesco asserted the statute of limitation as a defense, Bendix replied that the statute of limitations defense was unavailable to foreign state parties. According to the statute, a corporation is outside of Ohio when it has not availed itself to suit. Midwesco claims that this provision violates the Commerce Clause as well as the Fourteenth Amendment. The district court held in favor the Respondent Midwesco, finding that the tolling provision burdened interstate commerce in violation of Commerce Clause. The Appeals Court affirmed this decision. The U.S. Supreme Court affirmed.