Norman Thomas Trapp v. 4-10 Investment Corporation, Stanley A. Walkosz v. 4-10 Investment Corporation

424 F.2d 1261, 1970 U.S. App. LEXIS 9883
CourtCourt of Appeals for the Eighth Circuit
DecidedApril 9, 1970
Docket19712, 19713
StatusPublished
Cited by23 cases

This text of 424 F.2d 1261 (Norman Thomas Trapp v. 4-10 Investment Corporation, Stanley A. Walkosz v. 4-10 Investment Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norman Thomas Trapp v. 4-10 Investment Corporation, Stanley A. Walkosz v. 4-10 Investment Corporation, 424 F.2d 1261, 1970 U.S. App. LEXIS 9883 (8th Cir. 1970).

Opinion

LAY, Circuit Judge.

These are consolidated diversity actions brought against the 4-10 Investment Corporation, a citizen of North Dakota (called the 4-10 Bottle Shop) for personal injuries incurred by Norman Trapp and Stanley Walkosz, citizens of Minnesota, based upon the defendant’s alleged violation of the North Dakota Dram Shop Act. 1 In a jury trial, before the Honorable Ronald Davies, plaintiffs recovered verdicts in the sum of $22,000 for Walkosz and $45,000 for Trapp. The district court entered judgments on the verdicts and overruled defendant's motion for hew trial and its motion for judgment n. o. v.

*1263 Upon appeal defendant alleges (1) the erroneous application of the North Dakota “choice-of-law” rule to this conflict of laws problem, (2) insufficient evidence to make a prima facie case as to violation of the Dram Shop Act, (3) error in instructions as to the elements necessary to establish a claim under North Dakota law and (4) prejudicial error in the trial court’s receiving evidence as to (a) unrelated sales of alcoholic beverages by defendant, (b) hearsay testimony relating to a physician’s testimony concerning Walkosz’ injury and (c) speculative testimony as to possible future surgery. Upon due consideration of both the facts and law involved, we find no prejudicial error and affirm both judgments.

The facts may be briefly stated.

The injuries sustained by the plaintiffs were the result of a collision on Saturday, March 9, 1968, of their car with one driven by Craig Voigt. Voigt, at the time of the accident, was returning from a beer party held by high school students at a cottage on Fish Lake, in Minnesota. The beer party had been planned by some 50 to 60 juniors and seniors at Moorhead High School, in Moorhead, Minnesota, each of whom had contributed $2 or $3 for the purchase of the beer. The actual purchase had been made on the morning of March 9, by 20V2 year old John Flynn, at the request of student Tom Haug. Flynn made the purchase of the beer at the 4-10 Bottle Shop in Fargo, North Dakota. At that time, Flynn, Haug and Voigt were all Minnesota residents and minors.

Two sixteen gallon kegs of beer were purchased by Flynn from the 4-10 Bottle Shop. Haug, who had accompanied Flynn to Fargo, • remained in the car while the actual purchase was made. Flynn made the purchase with some seventy to eighty dollars, in small bills, which he had carried in his hand. At the time he made the purchase he was attired in tapered jeans and a sweater, sporting a two day old mustache. He was not questioned as to his age. He declined offered help from the clerk and insisted upon loading the kegs into the trunk of his car alone.

Thereafter, the beer was transported to a cottage on Fish Lake, Minnesota, about 45 miles southeast of Moorhead, Minnesota. Among those attending was Craig Voigt, who had helped to plan and had contributed to the purchase of the beer for the party. After consuming the equivalent of 6 or 7 cans of beer from the kegs (and no other alcohol), Voigt left the party. There was testimony that at the time he left he was intoxicated. Upon re-entering the city limits of Moor-head, Minnesota, at speeds estimated to have been between 70 and 80 miles per hour, he lost control of his car and collided with the car occupied by Trapp and Walkosz. Both plaintiffs were seriously injured.

(1) The “choice of law” rule.

By submission of the case to the jury under the North Dakota Dram Shop Act, the district court did not follow older North Dakota decisions which set forth the common law principle that the law of the place of the wrong governs tort actions. See Avron v. Plummer, 132 N.W.2d 198 (N.D.1964) (not a multi-state case); Mann v. Policyholders’ Nat. Life Ins. Co., 78 N.D. 724, 51 N.W.2d 853 (1952) (a multi-state case). We are not asked to pass upon the district court’s determination that North Dakota would now abandon its older rule of “lex loci delecti” and follow the more modern conflict of law principle of “significant contacts.” 2 Cf. American Service Mut. Ins. Co. v. Bottum, 371 F.2d 6, 9 n. 2 (8 Cir. 1967). Defendant concedes in its brief that the modern rule would now probably be followed in North Dakota, but complains that the trial court , erred in the application of that doctrine. Under these circumstances, we must look for direction principally from other jurisdictions, since the North Dakota Supreme Court has not passed upon this precise question.

*1264 Defendant in recognizing that the “significant contacts” rule is applicable, proceeds to list the contacts with Minnesota and North Dakota and concludes that the dominant contacts are with Minnesota and that Minnesota, therefore, has the overriding interest in this suit. In contrast, defendant argues that the contact with the State of North Dakota is fortuitous. In support defendant cites several cases where state courts have not applied their dram shop acts extra-territorially, including Graham v. General U.S. Grant Post No. 2665, V.F.W., 248 N.E.2d 657 (Ill.1969); Butler v. Wittland, 18 Ill.App.2d 578, 153 N.E.2d 106 (1958); Eldridge v. Don Beachcomber, Inc., 342 Ill.App.2d 151, 95 N.E.2d 512 (1950); Waynick v. Chicago’s Last Department Store, 269 F.2d 322 (7 Cir. 1959). Defendant distinguishes the Minnesota case of Schmidt v. Driscoll Hotel, Inc., 249 Minn. 376, 82 N.W.2d 365 (1957), where the Minnesota Dram Shop law was applied even though the accident occurred in Wisconsin, on the grounds that in that ease the alcohol was consumed in Minnesota and all the parties were from Minnesota.

The approach suggested by defendant seems to depend in large part on a counting of the contacts. However, this appears to be an inadequate application of the “significant contacts” rule as it is used today. The Supreme Court of Wisconsin in Wilcox v. Wilcox, 26 Wis.2d 617, 133 N.W.2d 408, 416 (1965), has observed :

“The proposed Draft of the Restatement Second, supra, lists contacts that in some cases may be controlling. We conclude that the mere counting of contacts should not be determinative of the law to be applied. It is rather the relevancy of the contact in the terms of policy considerations important to the forum, vis-a-vis, other contact states. We start with the premise that if the forum state is concerned it will not favor the application of a rule of law repugnant to its own policies, and that the law of the forum should presumptively apply unless it becomes clear that nonforum contacts are of the greater significance.”

This conception of the “significant contacts” choice of law theory is perhaps best espoused in its early promulgation in Babcock v. Jackson, 12 N.Y.2d 473, 481-482, 240 N.Y.S.2d 743, 749, 191 N.E.2d 279, 283 (1963), where the court said:

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Bluebook (online)
424 F.2d 1261, 1970 U.S. App. LEXIS 9883, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norman-thomas-trapp-v-4-10-investment-corporation-stanley-a-walkosz-v-ca8-1970.