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Pure Distributors, Inc. v. Baker

On limited factual record, district court could not infer that plaintiffs' complaint in earlier lawsuit referred to defendant when complaining of third party's wrongful behavior with "others," and thus summary judgment on statute of limitations grounds was improper.

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The full case caption appears at the end of this opinion.

TORRUELLA, Circuit Judge. Appellants in this diversity action seek review of the district court’s dismissal of their claim as time-barred. The district court, in concluding that the appellants’ cause of action accrued more than three years prior to the initiation of the present action, relied on certain inferences drawn from pleadings filed by the appellants in an earlier lawsuit. Although we believe that the pleadings in the other action might give rise to a potent inference that the claim is untimely, there is at least a reasonable basis for drawing a contrary inference. Because the summary judgment standard requires that all reasonable inferences be resolved in favor of the non-moving party, we conclude that the district court’s ruling on the statute of limitations was in error. Because we also conclude that the district court’s disposition cannot be sustained on alternate grounds, we reverse.

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