Husfeldt v. Willmsen

434 N.W.2d 480, 1988 Minn. App. LEXIS 1299, 1989 WL 456
CourtCourt of Appeals of Minnesota
DecidedJanuary 10, 1989
DocketC8-88-1561
StatusPublished
Cited by7 cases

This text of 434 N.W.2d 480 (Husfeldt v. Willmsen) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Husfeldt v. Willmsen, 434 N.W.2d 480, 1988 Minn. App. LEXIS 1299, 1989 WL 456 (Mich. Ct. App. 1989).

Opinion

OPINION

FLEMING, Judge.

Appellant Farm Bureau Mutual Insurance Company (Farm Bureau) filed a motion pursuant to Minn.R.Civ.P. 24.01 and 24.02 to intervene as a party defendant in a suit by its insured against an underinsured tortfeasor. The trial court denied the motion to intervene, finding that Farm Bureau had preserved its subrogation rights and stood in the plaintiff’s shoes for purposes of pursuing a claim against the tortfeasor. The trial court further found that intervention by Farm Bureau as a party defendant was inappropriate under the circumstances. Farm Bureau appeals, claiming it has an interest in this action which is not adequately represented by the existing parties. We affirm.

FACTS

On December 31, 1984, respondent Dale Husfeldt was injured in an automobile accident involving Walter Willmsen. Husfeldt and his wife, Ardis Husfeldt, commenced this action (Husfeldt v. Willmsen) against *481 Martha Willmsen as trustee for the estate of her late husband, Walter Willmsen. The Husfeldts alleged that Walter Willmsen negligently caused the automobile collision. They sought damages in excess of $50,000 for Dale’s injuries and Ardis’ loss of consortium. Dale Husfeldt was insured by Farm Bureau and Walter Willmsen was insured by State Farm Insurance Company (State Farm) at the time of the accident.

On the date of trial, September 21, 1987, settlement negotiations were conducted between Willmsen, State Farm, and the Hus-feldts. A record of the negotiations was made in the presence of the trial court and a tentative settlement was reached wherein the loss of consortium claim was dismissed with prejudice and the suit against Willm-sen was tentatively settled for the sum of $60,000. Husfeldt believed his underin-sured claim had been preserved.

On June 30, 1987, the Husfeldts commenced a second action (Husfeldt v. Farm Bureau), claiming underinsurance benefits for the same accident under a policy they had purchased from Farm Bureau. This case is pending in Washington County. At the time of the 1984 accident, Willmsen’s insurance policy with State Farm had a liability limit of $100,000. The Husfeldts alleged that their damages arising from the accident were in excess of $100,000 and that their Farm Bureau policy provided to them underinsured coverage in a total sum of $500,000.

On September 21 and September 24, 1987, counsel for the Husfeldts sent letters to Farm Bureau giving notice of the tentative $60,000 settlement pursuant to the requirements of Schmidt v. Clothier, 338 N.W.2d 256 (Minn.1983).

After receiving notice from the Hus-feldts, Farm Bureau, pursuant to the holding of Schmidt, forwarded its own check for $60,000, noting that Farm Bureau would not consent to a release by the Hus-feldts of their claim in light of the fact that the State Farm insurance policy had a $100,000 limit and the Willmsen estate had available assets. Upon receipt of the check substituted by Farm Bureau, the Hus-feldts’ attorney returned State Farm’s check to Willmsen’s attorney.

Defendant Willmsen filed a motion to dismiss Husfeldt v. Willmsen and for entry of a court order finalizing the settlement. In addition, Farm Bureau filed the subject motion to intervene as a defendant in Husfeldt v. Willmsen under Minn.R. Civ.P. 24.01, 24.02. Farm Bureau asserted in the motion that it had preserved its subrogation rights against Willmsen and State Farm by substituting its check for $60,000. Farm Bureau further asserted that it did not consent to any release of Willmsen in the amount of $60,000. Farm Bureau also contended it would be jeopardized greatly if not allowed to intervene as a defendant.

On June 20, 1988, the trial court denied defendant Willmsen’s motion to dismiss and also denied Farm Bureau’s motion to intervene as a party defendant. The trial court found the transcript of the settlement proceeding reflected that Husfeldt intended to preserve his underinsured claim. The trial court concluded that preservation of Husfeldt’s underinsured claim was a condition of settlement. The trial court further found that Farm Bureau was given the required notice under Schmidt of the tentative settlement and elected not to acquiesce to settlement when it substituted its payment of $60,000 for that of State Farm.

Because preservation of Husfeldt’s underinsured claim was a condition to settlement and because Farm Bureau did not elect to agree to settlement, the trial court denied Willmsen’s motion to dismiss. The trial court further concluded that Farm Bureau has properly protected its subrogation rights against Willmsen and State Farm and now stands in Husfeldt’s shoes and may pursue its subrogation claim against the tortfeasor. Under such circumstances, the trial court concluded that intervention as a party defendant was inappropriate.

ISSUE

Did the trial court err in denying Farm Bureau’s motion to intervene as a party defendant pursuant to Minn.R.Civ.P. 24.01?

*482 ANALYSIS

Farm Bureau filed its motion to intervene under Minn.R.Civ.P. 24.01 and 24.-02. Orders denying permissive intervention under Rule 24.02 are not appealable. Engelrup v. Potter, 302 Minn. 157, 224 N.W.2d 484 (Minn.1974). However, orders denying intervention as of right under Rule 24.01 are appealable, and on appeal, the reviewing court will independently assess the appropriateness of the order. Tierney v. American Group Benefit Services, Inc., 406 N.W.2d 579, 580 (Minn.Ct.App.1987) (citing Norman v. Refsland, 383 N.W.2d 673, 675-76 (Minn.1986)).

Minn.R.Civ.P. 24.01 provides:

Upon timely application anyone shall be permitted to intervene in an action when the applicant claims an interest relating to the property or transaction which is the subject of the action and he is so situated that the disposition of the action may as a practical matter impair or impede his ability to protect that interest, unless the applicant’s interest is adequately represented by existing parties.

To intervene as of right under Rule 24.01, a nonparty movant must establish:

(1) a timely application for intervention; (2) an interest relating to the property or transaction which is the subject of the action; • (3) circumstances demonstrating that the disposition of the action may as a practical matter impair or impede the party’s ability to protect that interest; and (4) a showing that the party is not adequately represented by the existing parties.

Minneapolis Star & Tribune Co. v. Schumacher, 392 N.W.2d 197, 207 (Minn.1986) (emphasis added).

Farm Bureau claims that its interest is not being adequately represented by the existing parties.

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Cite This Page — Counsel Stack

Bluebook (online)
434 N.W.2d 480, 1988 Minn. App. LEXIS 1299, 1989 WL 456, Counsel Stack Legal Research, https://law.counselstack.com/opinion/husfeldt-v-willmsen-minnctapp-1989.