Hill v. Stokely-Van Camp, Inc.

109 N.W.2d 749, 260 Minn. 315, 1961 Minn. LEXIS 578
CourtSupreme Court of Minnesota
DecidedJune 16, 1961
Docket38,176
StatusPublished
Cited by8 cases

This text of 109 N.W.2d 749 (Hill v. Stokely-Van Camp, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hill v. Stokely-Van Camp, Inc., 109 N.W.2d 749, 260 Minn. 315, 1961 Minn. LEXIS 578 (Mich. 1961).

Opinion

*316 Knutson, Justice.

This is an appeal from an order of the District Court of Faribault County denying plaintiff’s motion for summary judgment. The questions presented were certified to this court as important and doubtful. 1

The action is based upon an alleged creation of a nuisance in the operation of defendant’s canning factory. Prior to the commencement of this action, two separate actions were brought by other property owners in the vicinity of plaintiff’s property. In one action, Merrill H. Hall recovered a verdict in the sum of $1,350. Judgment was entered thereon, payment made, and the judgment satisfied. In the other action, a verdict was recovered by Byron Hall in exactly the same amount. An appeal was perfected to this court from an order denying a new trial, and we affirmed. Hall v. Stokely-Van Camp, Inc. 259 Minn. 101, 106 N. W. (2d) 8.

After issues were joined in the present action, plaintiff moved the court for summary judgment on the issue of liability, claiming that, inasmuch as the nuisance had been established by two former trials, the issue of liability was now res judicata by virtue of the judgment entered and satisfied in the Merrill Hall case and that an estoppel by verdict existed in the Byron Hall case under which defendant in this case was estopped from relitigating the issue of liability, leaving for determination only the question of damages. The appeal in the Byron Hall case was determined subsequent to the perfection of the appeal in this case. The facts relating to the alleged nuisance are sufficiently set forth in that opinion and need not be repeated here.

The general rule is that the doctrine of res judicata, as well as that of estoppel by verdict, does not operate to affect strangers to a judgment. It affects only those who are parties to the action or in privity with them. 2

Plaintiff does not dispute the existence of the general rule but *317 contends that he comes within an exception to the rule predicated upon the premise that where an issue has been litigated in a prior action against one of the parties to the present action it is res judicata as to him on the same issue in the present action even though one of the parties was not involved in the former suit or in privity with a party who was involved. Under certain circumstances we have recognized the exception upon which plaintiff relies. In Gammel v. Ernst & Ernst, 245 Minn. 249, 72 N. W. (2d) 364, 54 A. L. R. (2d) 316, we held that a plaintiff who has selected his forum and presented his proof on an issue is bound by the judgment rendered therein on such issue in a subsequent action even though against another party. In some of our prior cases relied upon in the Gammel case it appears that there was some connection between the parties involved in the first and subsequent actions so that a sort of privity could be claimed. 3

The entire subject is quite thoroughly discussed in 1 Freeman, Judgments (5 ed.) § 407, et seq. The limitations and exceptions to the general rule are to be found in § 409 and following sections, and many of the situations in which they may be applied may be found there.

Essential to the application of the rule, however, is a determination that the issue in the prior action is identical with that in the present case.

Plaintiff relies for the most part on Coca Cola Co. v. Pepsi-Cola Co. 36 Del. 124, 172 A. 260; Perkins v. Benguet Consol. Min. Co. 55 Cal. App. (2d) 720, 132 P. (2d) 70; Cover v. Platte Valley Public Power & Irrigation Dist. 162 Neb. 146, 75 N. W. (2d) 661; and our case of Gammel v. Ernst & Ernst, 245 Minn. 249, 72 N. W. (2d) 364, 54 A. L. R. (2d) 316.

While there are statements in these cases which might seem to support the claims of plaintiff, a careful examination of the decisions will show that they are not applicable here. In Coca Cola Co. v. Pepsi-Cola Co. supra, the court recognizes the rule that, where a fact has once been determined in an action between two parties, it is res judi *318 cata even as to a person who was not a party to the original action or in privity with such party. The court is careful to limit the application of the rule to cases where the issues are identical in the two suits. Among other things, the court said (36 Del. 132, 172 A. 263):

“The present defendant pleading res judicata was not a party to the former proceeding and the judgment in the former proceeding did not bind it so there is no mutuality. The present plaintiff, against whom the res judicata is pleaded is alleged to have been the unsuccessful plaintiff in the former proceedings where the issues were alleged to have been identical with those here involved. We are not now passing upon the actual existence, as a fact, of the identity of the issues in the two proceedings, for that identity must be proven. But assuming the identity of the issues, we are of the opinion that a plaintiff who deliberately selects his forum and there unsuccessfully presents his proofs, is bound by such adverse judgment in a second suit involving all the identical issues already decided.” (Italics supplied.)

Perkins v. Benguet Consol. Min. Co. supra, required a very complicated statement of facts. Reduced to simple terms, it might be explained as follows: Mr. and Mrs. Perkins, living in the Philippine Islands but citizens of the State of New York, became involved in a dispute as to the ownership of some stock of a corporation located in the Philippines. Through marital difficulties, this dispute was brought into court. The courts of the Philippines determined that Mr. Perkins was the owner of the stock. . The New York court refused to follow this decision and held that Mrs. Perkins was the owner of the stock. Thereafter, obtaining jurisdiction in the State of California by impounding assets of the corporation, Mrs. Perkins brought an action seeking recovery of dividends which had been accumulated or paid to Mr. Perkins. The corporation interposed as a defense that Mr. Perkins was the owner of the stock, thus questioning the effect of the decision of the New York court. The decision of the California court is essentially that the determination of ownership of the stock by the New York court was res judicata. The decision is based largely on the holding that the corporation had no interest in the matter and was simply a stakeholder. The decision is of little value here.

*319 The case that comes closest to supporting plaintiffs views is Cover v. Platte Valley Public Power & Irrigation Dist. supra. In that case an action was brought for damages caused by flooding certain land by an irrigation district. The court held that in previous litigation involving the same defendant it had been determined that a drain was inadequate; that defendant was negligent in constructing and maintaining such drain; that the determination of this issue in the prior action was final; and that the trial court, in subsequent litigation against the same defendant by a different plaintiff, could not relitigate the question of negligence in the construction of the drain.

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Bluebook (online)
109 N.W.2d 749, 260 Minn. 315, 1961 Minn. LEXIS 578, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hill-v-stokely-van-camp-inc-minn-1961.