In Re Individual 35w Bridge Litigation

786 N.W.2d 890, 2010 Minn. App. LEXIS 130, 2010 WL 3305197
Court of Appeals of Minnesota·Decided August 24, 2010·No. A09-1776, A09-1778·Published·Cited by 3 cases

Opinion

OPINION

PETERSON, Judge.

This appeal is from an order denying appellant’s motion to dismiss respondent’s third-party complaint for contribution and indemnity for failure to state a claim on which relief can be granted. We reverse.

FACTS

In 1962, the State of Minnesota entered into a contract with the engineering firm Sverdrup & Parcel and Associates, Inc. (Sverdrup) to design a bridge to carry Interstate Highway 35W across the Mississippi River. Construction of the bridge was completed in 1967. Through a series of name changes and mergers, appellant Jacobs Engineering Group Inc. (Jacobs) became Sverdrup’s successor in interest.

In 2003, the Minnesota Department of Transportation (MnDOT) contracted with respondent URS Corporation (URS) to inspect the I-35W bridge and recommend repairs. In 2007, MnDOT 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 people were injured in the collapse. More than 100 separate actions seeking damages arising from the bridge collapse were filed in state district court. The plaintiffs sued URS and PCI for negligence and breach of contract. The district court dismissed the plaintiffs’ breach-of-contract claims. URS and PCI then brought third-party actions for contribution and indemnity against Jacobs, claiming that Sverdrup negligently designed the bridge. 1

Jacobs moved under Minn. R. Civ. P. 12.02(e) to dismiss URS’s third-party action for failure to state a claim upon which relief can be granted. The district court denied the motion. Because a series of consolidations in the district court had grouped the plaintiffs’ cases into different categories and Jacobs filed motions to dis *893 miss in two of the categories, Jacobs filed two separate notices of appeal. This court consolidated the two appeals and determined that the order denying the motion to dismiss is immediately appealable because Jacobs’ motion to dismiss was immunity based and an order denying an immunity-based motion to dismiss is effectively unreviewable on appeal from a final judgment because it is a denial of a right not to stand trial — a right that is lost if the case is permitted to proceed.

ISSUES

1. Is Jacobs entitled to dismissal of the third-party claim for contribution?

2. Is Jacobs entitled to dismissal of the third-party claim for indemnity?

ANALYSIS

When reviewing a decision on a motion to dismiss pursuant to Minn. R. Civ. P. 12.02(e) for failure to state a claim on which relief can be granted, the question before this court is whether the complaint sets forth a legally sufficient claim for relief. Hebert v. City of Fifty Lakes, 744 N.W.2d 226, 229 (Minn.2008) (citing Barton v. Moore, 558 N.W.2d 746, 749 (Minn.1997)). “The reviewing court must consider only the facts alleged in the complaint, accepting those facts as true and must construe all reasonable inferences in favor of the nonmoving party.” Bodah v. Lakeville Motor Express, Inc., 663 N.W.2d 550, 553 (Minn.2003) (citing Marquette Nat’l Bank v. Norris, 270 N.W.2d 290, 292 (Minn.1978)). “The standard of review is therefore de novo.” Id. “Statutory construction is ... a legal issue reviewed de novo.” Lee v. Fresenius Med. Care, Inc., 741 N.W.2d 117, 122 (Minn.2007). “We construe statutes to effect their essential purpose but will not disregard a statute’s clear language to pursue the spirit of the law.” Id. at 123.

Contribution

Jacobs argues that it is entitled to dismissal of the third-party claim for contribution because an essential element of the claim is that Jacobs and URS must share a common liability to the plaintiffs and the statute of repose in Minn.Stat. § 541.051, subd. 1(a) (Supp.2007), precludes common liability. We agree.

The Minnesota Supreme Court long ago declared that “[t]he very essence of the action of contribution is ‘common liability.’ ” American Auto. Ins. Co. v. Moiling, 239 Minn. 74, 76, 57 N.W.2d 847, 849 (1953). The supreme court explained in Moiling that the doctrine of contribution applies when several persons are under a common liability to another and equity distributes the burden among the several obligors in proportion to their respective shares. Id. at 77, 57 N.W.2d at 850. When one of the several obligors satisfies the obligation that would otherwise fall on all of them, the rest are required to contribute to reimburse the one to the extent that he has discharged the obligation in excess of what could justly be claimed from him. Id. The reason why contribution is required under these circumstances is that one obligor has satisfied an obligation of the others. “It was the benefit of being relieved of an obligation on which equity based the duty to contribute.” Id. at 78, 57 N.W.2d at 850 (quotation omitted).

The supreme court explained further:

Thus, it has been emphasized that it is the actual discharging of the obligation so as to release the other party from an obligation that gives rise to the right to contribution. Without a legally enforceable obligation on the part of defendant in the contribution action there can, of course, be no such release.

*894 Id. at 82, 57 N.W.2d at 852 (citations omitted). Consequently, there is no right to contribution when there is no common liability.

The supreme court more recently reaffirmed this principle when it stated: “Although we are aware that the requirement of common liability has been criticized, we have not eliminated it. We impose this requirement because we believe that only a tortfeasor who is liable for a plaintiffs loss should be required to contribute to the payment for that loss.” Hart v. Cessna Aircraft Co., 276 N.W.2d 166, 168-69 (Minn.1979); see also Jones v. Fisher, 809 N.W.2d 726, 728 (Minn.1981) (“Two requirements must be met before contribution may be obtained: ‘First, the co-tort-feasors must be under a common liability to the injured party. Second, the co-tort-feasors claiming contribution must have paid a disproportionate share of the judgment.’ ” (quoting Note, Contribution & Indemnity — An Examination of the Upheaval in Minnesota Tort Loss Allocation Concepts, 5 Wm. Mitchell L.Rev. 109, 125 (1979))).

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In Re Individual 35w Bridge Litigation, 786 N.W.2d 890, 2010 Minn. App. LEXIS 130, 2010 WL 3305197 (Mich. Ct. App. 2010).

786 N.W.2d 890 (In Re Individual 35w Bridge Litigation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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