Integrity Floorcovering, Inc. v. Broan-Nu Tone LLC

503 F. Supp. 2d 1136, 2007 U.S. Dist. LEXIS 13975, 2007 WL 628212
CourtDistrict Court, D. Minnesota
DecidedFebruary 26, 2007
Docket0:06-cv-00496
StatusPublished
Cited by3 cases

This text of 503 F. Supp. 2d 1136 (Integrity Floorcovering, Inc. v. Broan-Nu Tone LLC) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Integrity Floorcovering, Inc. v. Broan-Nu Tone LLC, 503 F. Supp. 2d 1136, 2007 U.S. Dist. LEXIS 13975, 2007 WL 628212 (mnd 2007).

Opinion

*1138 ORDER GRANTING MOTION FOR SUMMARY JUDGMENT

SCHILTZ, District Judge.

On February 2, 2004, a bathroom ventilation fan manufactured by defendant Broan-Nu Tone LLC (“Broan”) allegedly malfunctioned and caused a fire that damaged a building owned by plaintiff Integrity Flooreovering, Inc. (“Integrity”). Integrity brought this product-liability action against Broan. Broan has moved for summary judgment on the grounds that Integrity’s claims are barred by Minn.Stat. § 541.051, subd. 1(a) (“subdivision 1(a)”), which generally provides a ten-year statute of repose for lawsuits “arising out of the defective and unsafe condition of an improvement to real property!.]” 1 Integrity resists the motion, arguing primarily that its claims fall within an exception to the statute of repose for lawsuits against “the manufacturer or supplier of any equipment or machinery installed upon real property.” Minn.Stat. § 541.051, subd. 1(d) (“subdivision 1(d)”).

Basically, then, whether this lawsuit is time-barred depends on whether a bathroom ventilation fan is a piece of “equipment or machinery” for purposes of subdivision 1(d). The statute does not define “equipment or machinery”; the legislative history is essentially silent about the meaning of the term; the Minnesota courts have said very little about what the term means; and some of what has been said is contradictory and confusing. Obviously, this Court does not have a lot to work with. Ultimately, however, the Court concludes that a bathroom ventilation fan is not a piece of “equipment or machinery” for purposes of the statute. Therefore, the ten-year statute of repose applies, and this action must be dismissed.

I. BACKGROUND

The record contains almost no information about the ventilation fan that allegedly caused the fire. We know that Broan made it and that it was installed during the construction of the building in 1979. We also know that, at the time of construction, the relevant building codes required ventilation either naturally (as through a window) or by way of a mechanically-operated ventilation system. Dubbin Aff. ¶ 7 & Ex. B § 1105.

The fan was hard-wired into the building’s electrical system and connected to the ventilation stack. Broan had no involvement in choosing the installers or otherwise supervising installation. The parties presume that the installers simply purchased the Broan fan from a building-supply company. The parties further presume that the fan was manufactured and tested at a factory and did not require much, if any, assembly. We do not know whether the installers did or did not follow any instructions that Broan might have provided with the fan.

II. ANALYSIS

A party is entitled to prevail on a motion for summary judgment “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed. R.Civ.P. 56(c). In considering a motion for summary judgment, a court must assume that the nonmoving party’s evidence is true and draw all justifiable inferences *1139 arising from the evidence in that party’s favor. Taylor v. White, 321 F.3d 710, 715 (8th Cir.2003).

This is a diversity ease. Minnesota substantive law governs, and, in interpreting Minnesota substantive law, this Court is bound by the decisions of the Minnesota Supreme Court. See Hope v. Klabal, 457 F.3d 784, 790 (8th Cir.2006). When the Minnesota Supreme Court has not spoken on an issue, this Court must follow the decisions of the Minnesota Court of Appeals, if they are the best evidence of Minnesota law. Id.

A. Improvement to Real Property

Broan moves for summary judgment, on the basis of Minnesota’s statute of repose for improvements to real property, which provides, in relevant part:

Except where fraud is involved, no action by any person in contract, tort, or otherwise to recover damages for any injury to property, real or personal ... arising out of the defective and unsafe condition of an improvement to real property ... shall be brought against any person performing or furnishing the design, planning, supervision, materials, or observation of construction or construction of the improvement to real property ... more than two years after discovery of the injury ... nor, in any event shall such a cause of action accrue more than ten years after substantial completion of the construction.

Minn.Stat. § 541.051, subd. 1(a). A defense based on a statute of repose is an affirmative one, and the party asserting it bears the burden of proof. See State Farm Fire & Cas. v. Aguila Inc., 718 N.W.2d 879, 885 (Minn.2006).

The Minnesota Supreme Court defines an “improvement to real property” as “ ‘a permanent addition to or betterment of real property that enhances its capital value and that involves the expenditure of labor or money and is designed to make the property more useful or valuable as distinguished from ordinary repairs.’ ” Id. at 884 (quoting Pac. Indem. Co. v. Thompson-Yaeger, Inc., 260 N.W.2d 548, 554 (Minn.1977)). In addition, an improvement must be “integral to and incorporated into the building or structure on the property.” Ritter v. Abbey-Etna Mach. Co., 483 N.W.2d 91, 93 (Minn.Ct.App.1992).

The bathroom ventilation fan manufactured by Broan undoubtedly fits this description. The fan was a “permanent addition to or betterment of’ Integrity’s building. The fan’s purchase and installation “involve[d] the expenditure of labor [and] money.” Without the fan, the building would not have conformed to code, and no means would have existed for removing humidity from the bathroom, likely causing mildew, rust, peeling paint or wallpaper, and similar deterioration of the property. Thus, the fan “enhanee[d]” the “capital value” of Integrity’s building and “ma[d]e the property more useful or valuable.” The fan was also “integral to and incorporated into” the building’s ventilation system. Without question, then, the fan was an “improvement to real property” for purposes of subdivision 1(a).

There is no dispute that this lawsuit was filed more than ten years after installation of the Broan fan in the Integrity building. Nor is there any dispute that Integrity’s claims “aris[e] out of the defective and unsafe condition” of the fan. Integrity’s claims therefore appear to be barred by subdivision 1(a).

Integrity makes two arguments to the contrary.

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503 F. Supp. 2d 1136, 2007 U.S. Dist. LEXIS 13975, 2007 WL 628212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/integrity-floorcovering-inc-v-broan-nu-tone-llc-mnd-2007.