In Re Individual 35w Bridge Litigation

787 N.W.2d 643, 2010 Minn. App. LEXIS 134, 2010 WL 3307001
CourtCourt of Appeals of Minnesota
DecidedAugust 24, 2010
DocketA10-87, A10-89, A10-90, A10-91
StatusPublished
Cited by3 cases

This text of 787 N.W.2d 643 (In Re Individual 35w Bridge Litigation) 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
In Re Individual 35w Bridge Litigation, 787 N.W.2d 643, 2010 Minn. App. LEXIS 134, 2010 WL 3307001 (Mich. Ct. App. 2010).

Opinion

OPINION

STAUBER, Judge.

Appellant challenges the denial of its motion to dismiss the cross-claims of respondent Minnesota Department of Transportation (the state) for contractual contribution and indemnity and for statutory reimbursement arising out of the collapse of the Interstate Highway 35W bridge in 2007. Appellant argues that: (1) Minn. Stat. § 541.051 (2008) bars the state’s claims; (2) the compensation statutes passed after the collapse unconstitutionally impair the 1962 contract between the bridge designer and the state; (3) settlement agreements between the state and some of the plaintiffs bar the state’s claims; and (4) appellant is not required to reimburse the state for “voluntary” payments made to survivors of the collapse under the compensation statutes. We affirm.

FACTS

In October 1962, an engineering firm then known as Sverdrup & Parcel and Associates Inc. (Sverdrup) entered into a contract with the state. Sverdrup agreed to design a bridge that would carry Trunk Highway No. 35W across the Mississippi River in Minneapolis. Sverdrup also agreed to indemnify the state for “any and all claims, demands, actions or causes of action of whatsoever nature or character arising out of or by reason of the execution or performance of the work ... provided *646 for under this agreement.” Sverdrup certified the final design plans for the bridge in March 1965, and construction of the bridge was substantially completed in 1967.

In 2003, the state contracted with URS Corporation (URS) to inspect the bridge and recommend repairs. In 2007, the state contracted with Progressive Contractors Incorporated (PCI) to repair the bridge. The repair project began in June 2007 and was scheduled to be completed in September 2007.

On August 1, 2007, the bridge collapsed. Thirteen people were killed, and more than 100 were injured. Legislation was passed to compensate survivors 1 of the collapse. See Minn.Stat. §§ 3.7391-.7395 (2008) (the compensation statutes). The state entered into settlement agreements with 179 survivors who made statutory claims for compensation, paying them $36,640,000 through the compensation statutes and $398,984.36 from the emergency-relief fund. The compensation statutes provide that the state may seek reimbursement for these payments:

Notwithstanding any statutory or common law to the contrary, the state is entitled to recover from any third party, including an agent, contractor, or vendor retained by the state, any payments made from the emergency relief fund or under section 3.7393 to the extent the third party caused or contributed to the catastrophe.[ 2 ] The state is entitled to be reimbursed regardless of whether the survivor is fully compensated.

MinmStat. § 3.7394, subd. 5(a).

More than 100 separate actions related to the collapse were filed in Hennepin County District Court. The district court consolidated these actions and sorted them into nine categories. The cases underlying this appeal are the Schwebel firm’s wrongful-death and personal-injury cases. The plaintiffs here, some of whom settled with the state under the compensation statutes, sued URS and PCI for negligence and breach of contract. PCI asserted third-party claims against appellant Jacobs Engineering Group Inc. (Jacobs), which acquired Sverdrup in 1999, and against the state. URS sued Jacobs and PCI.

The state sued Jacobs, alleging that Sverdrup negligently designed the bridge, breached its 1962 contract with the state, and contributed to the collapse. The state cross-claimed against Jacobs, alleging three causes of action: (1) common-law contribution and indemnity; (2) contractual contribution and indemnity; and (3) reimbursement pursuant to the compensation statutes. 3

Jacobs moved to dismiss the state’s cross-claims pursuant to Minn. R. Civ. P. 12.02(e) for failure to state a claim upon which relief can be granted. After a hearing, the district court denied Jacobs’s motion.

Jacobs sought review of the district court order denying its motion to dismiss. *647 This court questioned whether the order was appealable as a matter of right, dismissed the appeal without prejudice, and remanded for the district court to rule on the applicability of Minn.Stat. § 541.051 to the state’s claim of contractual contribution and indemnity. After receiving further submissions from Jacobs and the state, the district court issued an amended order that addressed the application of section 541.051 and again denied Jacobs’s motion to dismiss.

Jacobs appealed the original and amended orders. This court granted Jacobs’s request for discretionary review of certain issues.

ISSUES

I. Does Minn.Stat. § 541.051 bar the state’s claims against Jacobs?

II. Are Jacobs’s due-process rights violated by the retroactive revival of the state’s claims?

III. Do the compensation statutes unconstitutionally impair Sverdrup’s 1962 contract with the state?

IV. Is the state prohibited from pursuing its statutory reimbursement claim against Jacobs because (1) Pierringer settlements preclude a settling defendant from asserting indemnity claims against a non-settling defendant or (2) the state’s payments under the compensation statutes were “voluntary”?

ANALYSIS

When reviewing a district court’s decision on a motion to dismiss pursuant to Minn. R. Civ. P. 12.02(e) for failure to state a claim upon which relief can be granted, the question before this court is whether the complaint sets forth a legally sufficient claim for relief. See Hebert v. City of Fifty Lakes, 744 N.W.2d 226, 229 (Minn.2008) (stating standard of review when a case has been dismissed pursuant to rule 12.02(e)). We consider only the facts alleged in the complaint, accept those facts as true, and construe all reasonable inferences in favor of the nonmoving party. Bodah v. Lakeville Motor Express, Inc., 663 N.W.2d 550, 553 (Minn.2003). But we may consider matters outside the pleadings if the pleadings refer to or rely on the outside matters. In re Hennepin County 1986 Recycling Litig., 540 N.W.2d 494, 497 (Minn.1995) (considering contracts central to the dispute). The standard of review is de novo. Bodah, 663 N.W.2d at 553.

I.

We first consider Jacobs’s argument that the current version of section 541.051, which limits the time within which actions may be brought for damages based on services or construction to improve real property, bars the state’s claims against Jacobs for contractual contribution and indemnity and for statutory reimbursement. 4

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re Individual 35W Bridge Litigation
806 N.W.2d 811 (Supreme Court of Minnesota, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
787 N.W.2d 643, 2010 Minn. App. LEXIS 134, 2010 WL 3307001, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-individual-35w-bridge-litigation-minnctapp-2010.