Oslund v. Johnson

578 N.W.2d 353, 1998 Minn. LEXIS 279, 1998 WL 240219
CourtSupreme Court of Minnesota
DecidedMay 14, 1998
DocketC4-97-253
StatusPublished
Cited by8 cases

This text of 578 N.W.2d 353 (Oslund v. Johnson) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oslund v. Johnson, 578 N.W.2d 353, 1998 Minn. LEXIS 279, 1998 WL 240219 (Mich. 1998).

Opinion

OPINION

ANDERSON, Justice.

Early in the morning on February 13, 1994, defendant Grant Johnson drove his father’s van while intoxicated and rear-ended a city sanding truck driven by plaintiff James Oslund. Eleven months later, Oslund commenced an action against Grant Johnson’s father, respondent James Johnson, for injuries arising from this accident. Fifty-eight days later, James Johnson served a notice of claim against the appellants, the CC Club and the Uptown Bar, the last two bars to serve Grant Johnson alcoholic beverages before the accident. The following day, Johnson served the two bars with a third-party complaint. The two bars brought motions for summary judgment, asserting that James Johnson failed to comply with the time requirements for notice under the Dram Shop

Act, Minn.Stat. ch. 340A (1996). The district court granted the motions. The Minnesota Court of Appeals reversed, holding that the statutory notice requirement did not apply to vicariously liable tortfeasors such as James Johnson. We conclude that the statutory notice requirement does apply to James Johnson, and that the notice he gave was untimely. Therefore, we reverse the court of appeals and reinstate the district court’s grant of summary judgment.

The facts are undisputed. Grant Johnson was driving his father’s van on the evening of February 12, 1994 as he went from bar to bar drinking with friends. Around 11:00 p.m., he left the CC Club and went to the Uptown Bar. Both bars served alcoholic beverages to Grant. 'After leaving the Uptown Bar around 1:00 a.m. on February 13, Grant was driving the van along Dupont Avenue in Minneapolis when he rear-ended a city sanding truck being driven by James Oslund. When the police arrived at the accident scene, they noticed that Grant appeared to be intoxicated and obtained his consent to test his blood for alcohol. The test showed that at 2:20 a.m. Grant’s blood alcohol content was .23.

Oslund suffered injuries as a result of the accident and, on January 17, 1995, commenced an action against James Johnson to recover damages for these injuries. In his action, Oslund alleged that because James Johnson, Grant’s father, gave Grant permission to drive the van, Johnson was liable for injuries arising from the accident. See Minn. Stat. § 170.54 (1996).

On March 16, 1995, James Johnson sent notices to Matthew Chamernick, Lester Em-ard, and TMMS, Inc., doing business as CC Club, and Toonen, Inc., doing business as Uptown Bar & Cafe. He informed the bars about the January 17 lawsuit and notified them that he may be bringing an action against them under the Dram Shop Act, which allows a person injured by the result of an illegal sale of alcoholic beverages to recover from the one making the illegal sale. Minn.Stat. § 340A.801. The following day, Johnson served a third-party complaint against the two bars, alleging that they had illegally served his son alcoholic beverages on *356 February 12 and 13, 1994, and thus he, James Johnson, was entitled to contribution or indemnity from the bars.

The two bars brought motions” for summary judgment, arguing that Johnson had failed to meet the notice requirement of Minn.Stat. § 340A.802, subd. 2, which provides in part:

In the case of claims for contribution or indemnity [from a liquor vendor], * * * notice [of the claim] must be served within 120 days after the injury occurs or within 60 days after receiving written notice of a claim for contribution or indemnity, whichever is applicable.

Under that statute, “[n]o action for * * * contribution or indemnity, may be maintained unless the notice has been given.” Id. The two bars argued that because the accident occurred on February 13, 1994, and Johnson served them with the notice more than a year later on March 16, 1995, Johnson had failed to meet the 120-day-from-injury provision. The Hennepin County District Court denied the motion, determining that Johnson only needed to provide notice within 60 days of receiving notice himself, and found that Johnson did not receive notice until Oslund’s complaint was served on January 17, 1995. Therefore, the court concluded that the notice sent on March 16,1995 was timely.

Additional discovery revealed that James Johnson knew of the accident the day it occurred and had been put on notice that he could be sued long before he was served with Oslund’s complaint. Johnson admitted during his deposition that his son called him on the day of the accident, told him about the accident, and informed Johnson that he had been drinking. Further, Oslund’s attorney sent James Johnson a letter on October 27, 1994, notifying Johnson that he would be representing Oslund in regard to the accident and asking Johnson to immediately notify his insurer. Based on this additional information, the two bars renewed their motions for summary judgment. This time, the district court stated that it was unclear whether the 120-day or 60-day provision applied, but held that Johnson’s notice was untimely under either provision. Therefore, the court granted summary judgment'in favor of the two bars, dismissing the ease against them. Later, in 1996, Johnson settled his claims with Oslund.

Johnson appealed the district court’s grant of summary judgment in favor of the two bars. The court of appeals reversed the district court and reinstated Johnson’s action. The court of appeals held that the time periods for notice in Minn.Stat. § 340A.802, subd. 2 do not apply to a tortfeasor who is only vicariously liable and thus do not apply to Johnson. The court stated that the “120 days after the injury” provision could not apply because a vicarious tortfeasor may not even have notice of the injury within 120 days of its occurrence. The court further held that the “60 days after receiving written notice of a claim for contribution or indemnity” provision does not apply to a vicariously liable tortfeasor such as Johnson who is sued for damages, and not for contribution or indemnity. Alternatively, the court concluded that even if the 60-day notice provision applies, Johnson was in compliance because he served the notice of injury within 60 days of being served with the summons and complaint against him. The two bars now appeal to this court.

When reviewing summary judgment, we review the record to determine whether there are any genuine issues of material fact and whether the district court erred in its application of the law. Wallin v. Letourneau, 534 N.W.2d 712, 715 (Minn.1995). “When a [district] court applies statutory language to the undisputed facts of a case, its conclusion is one of law and does not bind this court.” Id. Here, the facts are undisputed, and the only question is one of statutory interpretation. As such, we apply de novo review to the district court’s decision..

The first issue is whether the notice requirement applies to Johnson who is only alleged to have been vicariously hable. If the words of a statute are free from ambiguity, they are not to be disregarded. Minn. Stat. § 645.16 (1996). Therefore, we begin with the language of the statute. Subdivision 1 of Minn.Stat. § 340A.802 provides that a “person who claims * * * contribution or indemnity from a licensed retailer of alcohol *357

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Cite This Page — Counsel Stack

Bluebook (online)
578 N.W.2d 353, 1998 Minn. LEXIS 279, 1998 WL 240219, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oslund-v-johnson-minn-1998.