In Re Shigellosis Litigation

647 N.W.2d 1, 2002 WL 1315568
CourtCourt of Appeals of Minnesota
DecidedJune 18, 2002
DocketC2-01-1696
StatusPublished
Cited by15 cases

This text of 647 N.W.2d 1 (In Re Shigellosis 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 Shigellosis Litigation, 647 N.W.2d 1, 2002 WL 1315568 (Mich. Ct. App. 2002).

Opinion

647 N.W.2d 1 (2002)

In re SHIGELLOSIS LITIGATION, and Minnesota Horse and Hunt Club, Appellant.
Trigger's Supper Club, plaintiff,
v.
Sunridge Farms, Inc., Bix Fruit Company, Inc., Respondents.

No. C2-01-1696.

Court of Appeals of Minnesota.

June 18, 2002.

*3 Michael C. Lindberg, Susan E. Gustad, Johnson & Lindberg, P.A., Minneapolis, MN, for appellant.

John F. Angell, Louise A. Behrendt, Stich, Angell & Kreidler, P.A., Minneapolis, MN, for respondent Sunridge Farms, Inc.

John M. Anderson, Matthew J. Franken, Bassford, Lockhart, Truesdell & Briggs, P.A., Minneapolis, MN, for respondent Bix Fruit Company, Inc.

Considered and decided by TOUSSAINT, Presiding Judge, LANSING, Judge, and FOLEY, Judge.[*]

OPINION

LANSING, Judge.

More than 200 people became ill after eating bacteria-contaminated parsley at a restaurant operated by Horse & Hunt Club. This appeal arises from Horse & Hunt's contribution and indemnity claims against the seller and the importer to allocate the $1,000,000 arbitration liability for the consumers' damages. We affirm the denial of Horse & Hunt's challenges to the jury verdict relating to the importer. But because the produce seller was dismissed before trial without a complaint being filed against the certified manufacturer, we reverse and remand for further proceedings against the seller.

FACTS

Horse & Hunt Club operates an eating facility that served bacteria-contaminated parsley on parsley-buttered potatoes in August 1998. After complaints about a food-borne illness, the Minnesota Department of Health investigated and concluded that the illness resulted from ingestion of parsley contaminated with the shigella bacteria.

Through discovery, Horse & Hunt determined the parsley had been grown in Mexico by Agricola Herendira/Grupo Pas *4 L.L.C. (Grupo Pas); purchased and imported by Sunridge Farms of California; sold first to Bix Fruit Company, a seller and distributor; and then to Horse & Hunt. The Minnesota Department of Health's trace-back investigation disclosed that the water used by Grupo Pas to rinse and ice the parsley in Mexico was untreated and contaminated with shigella bacteria.

The consumers affected by the bacteria sued Horse & Hunt for negligence, per se negligence for violation of food statutes, breach of implied warranties of merchantability and fitness, and strict liability. Horse & Hunt brought a third-party contribution-and-indemnity claim against Bix, the distributor, and against Sunridge, the importer. The district court ordered that the parties address issues of relative fault among the entities in the distribution chain before resolving the consumers' causation and damage claims.

Horse & Hunt initially identified Bix as the parsley manufacturer. But after the close of discovery, Horse & Hunt alleged instead that Sunridge was the manufacturer and moved for summary judgment. Horse & Hunt claimed that Sunridge, as the importer, should be deemed the "manufacturer" of the contaminated parsley because it marketed and sold the parsley under its own trademarked name, "Coastline," and because no party had produced evidence that Horse & Hunt was negligent in handling the parsley.

At the same time, Bix moved for dismissal of strict-liability claims under Minn. Stat. § 544.41 (2000), the "seller's exception" statute, and summary judgment on the remaining claims. Bix identified the Mexican grower, Grupo Pas, as the manufacturer of the contaminated parsley. Horse & Hunt opposed Bix's motion, arguing that the identity of the manufacturer was in dispute, that Grupo Pas was not a party to the litigation, and that Grupo Pas was not subject to jurisdiction in Minnesota courts.

The district court denied Horse & Hunt's motion because of the substantial factual dispute over the identity of the "true manufacturer" of the contaminated parsley. But the court granted Bix's motion for summary judgment based on Horse & Hunt's argument that Sunridge was a manufacturer. The court granted leave to Sunridge to interplead Grupo Pas, but Sunridge instead brought a fifth-party complaint against International Farm Services, who was later dismissed on jurisdictional grounds.

After Bix was dismissed, Horse & Hunt and Sunridge agreed to resolve the consumers' claims through binding arbitration. While the arbitration was proceeding, the affected consumers moved for summary judgment on strict-liability grounds. Horse & Hunt admitted it had sold food contaminated by shigella but opposed the entry of summary judgment until the relative fault of the codefendants was resolved at trial. The court granted summary judgment against Horse & Hunt but stayed entry of judgment until the conclusion of the trial among the codefendants.

Horse & Hunt's contribution-and-indemnity claim against Sunridge was tried to a jury. Horse & Hunt requested jury instructions on strict liability for manufacturing defects (CIVJIG 75.30), negligence of a seller of goods (CIVJIG 75.35), per se negligence based on violation of federal food statutes (CIVJIG 25.45), and implied warranty of merchantability (CIVJIG 22.25, .55). The court declined to instruct on the negligence of a seller, and on breach of warranty on the basis that this claim merged into the strict-liability and negligence claims.

*5 By special verdict, the jury found that the parsley was defective and unreasonably dangerous, Sunridge sold the contaminated parsley but did not manufacture or exercise significant control over it, Grupo Pas manufactured the parsley and was negligent in manufacturing it, and Horse & Hunt was not negligent in using the parsley. Even though the jury found only Grupo Pas at fault, the jury assessed fault to Sunridge (27%), Grupo Pas (65%) and Horse & Hunt (8%). The district court concluded that Horse & Hunt was not entitled to recover against Sunridge and found that the apportionment of fault was inconsistent with the other answers.

Horse & Hunt moved for JNOV and a new trial. The district court denied all post-trial motions. The court confirmed the arbitration awards and ordered Horse & Hunt to fund the awards. Horse & Hunt appeals from the denial of posttrial motions and from the order granting summary judgment to Bix.

ISSUES

I. Can a commercial seller in a strict-liability action be dismissed under Minn.Stat. § 544.41 before a complaint has been filed against the certified manufacturer?
II. Can a commercial seller be liable for negligence in selling contaminated produce if no standard of care for a produce purchaser and reseller has been established?
III. Did the district court err in declining to grant JNOV?

ANALYSIS

The multiple causes of action and the results of pretrial motions have created confusion among the parties. In the appellate submissions, the jury instructions, and the district court memoranda, Horse & Hunt has been misidentified as the "plaintiff," and other references indicate that Horse & Hunt has brought claims of strict liability or negligence against the other defendants.

For purposes of clarity in analysis and in subsequent proceedings, we emphasize that the claims among Horse & Hunt, Bix, and Sunridge are claims among codefendants for contribution and indemnity. See Tolbert v. Gerber Indus., Inc., 255 N.W.2d 362

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Bluebook (online)
647 N.W.2d 1, 2002 WL 1315568, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-shigellosis-litigation-minnctapp-2002.