Regie De L'Assurance Automobile Du Quebec v. Jensen

389 N.W.2d 537, 1986 Minn. App. LEXIS 4469
CourtCourt of Appeals of Minnesota
DecidedJune 24, 1986
DocketC2-86-336
StatusPublished
Cited by5 cases

This text of 389 N.W.2d 537 (Regie De L'Assurance Automobile Du Quebec v. Jensen) 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
Regie De L'Assurance Automobile Du Quebec v. Jensen, 389 N.W.2d 537, 1986 Minn. App. LEXIS 4469 (Mich. Ct. App. 1986).

Opinion

OPINION

SEDGWICK, Judge.

Lauritz Jensen appeals the trial court’s judgment in favor of the Regie de 1’assur-ance Automobile du Quebec. We affirm.

FACTS

On June 19, 1979, a collision occurred between vehicles operated by' appellant Lauritz Jensen and Douglas Grapes on Minnesota Highway No. 11 in Kittson County. Marguerite Grapes, the spouse of Douglas Grapes, died from injuries sustained in that collision.

The Regie de l’assurance Automobile du Quebec (respondent) (hereinafter the Re-gie) is a government agency established under the laws of Quebec. It administers an automobile insurance plan applicable to every Quebec citizen sustaining injury or damage from car accidents, whether or not the accident occurs within the Province of Quebec.

Under Quebec’s Automobile Insurance Act, the Regie paid benefits to Douglas Grapes as a result of his wife’s death. The heirs and next-of-kin have assigned their claims against appellant to the Regie.

In May of 1982, the Regie sued appellant for subrogation for benefits paid to Douglas Grapes.

Appellant moved for judgment on the pleadings or for summary judgment in December 1982. The trial court denied this motion, but encouraged the Regie to have a trustee appointed in order to seek recovery under the Minnesota wrongful death statute, Minn.Stat. § 573.02, subd. 1 (1984). Despite objection by appellant, the Regie was appointed trustee. Respondent amended its complaint to add a Minn.Stat. § 573.02 wrongful death claim in September, 1984.

Appellant then brought a second motion for judgment on the pleadings or for summary judgment. He claimed that the wrongful death claim should be dismissed upon any of the following grounds: 1) because the assignments to the Regie were invalid; 2) because the Regie was not a *539 competent trustee; 3) because subrogation of the wrongful death claim was barred by the Minnesota no-fault act. The trial court denied this motion.

The stipulated damages were $69,132.65. The trial court ordered judgment for the Regie in this amount. Jensen appeals.

ISSUES

1. Was the Regie prohibited by the Minnesota No-fault Act from bringing a subro-gation action?

2. Does the statute of limitations bar the Regie from bringing this action?

3. Does the Regie have standing to bring a wrongful death action under Minn. Stat. § 573.02?

ANALYSIS

1. Appellant argues that the trial court erred in allowing subrogation, since the no-fault act prohibits subrogation in such circumstances.

The no-fault act specifically limits when an insurer may subrogate. According to Minn.Stat. § 65B.53, subds. 2, 3 (1984), a reparation obligor paying basic economic loss benefits is subrogated to a claim based on an intentional tort, strict or statutory liability or negligence other than negligence in the maintenance, use, or operation of a motor vehicle. The right of subrogation exists only to the extent that basic economic loss benefits are paid or payable and only to the extent that recovery on the claim absent subrogation would produce a duplication of benefits. Minn.Stat. § 65B.53, subd. 2.

Not only is the right of subrogation strictly limited, the right to offset is also narrowly defined. See Minn.Stat. § 65B.51 (1984). This is to effect the purpose of the no-fault act to reduce litigation relating to automobile accidents. The right to receive basic economic loss benefits without regard to fault is the quid pro quo for the limitation of the right to recover general damages in tort. See M. Steenson, Minnesota No-Fault Automobile Insurance, 23 (1982).

The question is whether these no-fault act limitations upon subrogation apply to the Regie. The Minnesota Supreme Court has not yet addressed the question of whether the no-fault act applies to a governmental entity such as the Regie. In holding that the Minnesota no-fault act applied to a California insurer licensed to do business in Minnesota, the court stated:

We are not confronted with the problem of a nonresident operator of a motor vehicle insured by a company not licensed to do business in Minnesota and do not pass on this issue.

Petty v. Allstate Insurance Co., 290 N.W.2d 763, 765, n. 1 (Minn.1980).

This court has held that an Ohio insurer not licensed in Minnesota was not required to subscribe to the no-fault limitations in Minnesota law. Burgie v. League General Insurance Co., 355 N.W.2d 466 (Minn.Ct.App.1984), pet. for rev. denied (Minn. Feb. 19, 1985). See Pavel v. Norseman Motorcycle Club, Inc., 362 N.W.2d 5 (Minn.Ct.App.1985). (The no-fault act does not preclude an insurer’s subrogation claim for benefits paid due to a motorcycle collision, since motorcycle accidents are specifically excluded by the no-fault act.) Following the guidance of Burgie, we hold that the Regie is not bound by the subrogation limitations of the no-fault act.

The next question is whether the Regie was entitled to reimbursement under common law subrogation.

The doctrine of subrogation is not a fixed rule of law or of equity. 73 Am.Jur.2d Subrogation § 6 (1974). It is broad enough to include every instance in which a person not acting as a mere volunteer pays a debt for which another is primarily liable, and which in equity and good conscience should have been discharged by the latter. The doctrine embraces all cases where, without it, complete justice cannot be done. There is no limit to the circumstances in which the doctrine may be applied. Id.

Equitable principles apply to all instances of subrogation except when modified by specific provisions in the contract. The *540 general rule is that subrogation will be denied prior to full recovery. Westendorf v. Stasson, 330 N.W.2d 699, 703 (Minn.1983) (subrogation denied to health maintenance organization because full recovery had not been achieved). See Schmidt v. Clothier, 338 N.W.2d 256 (Minn.1983).

Here, the Canadian government has no other recovery mechanism. Equity would require allowance of the subrogation action. The trial court did not err in granting judgment to the Regie.

2. Appellant also argues that the wrongful death action under Minn.Stat. 573.02 (1984) is barred by the statute of limitations. Under § 573.02, subd. 1, an action for negligence may be commenced within three years after the date of death. Appellant claims that because the second amended complaint was filed after this three year period, the action is barred by the limitation period.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Fire Insurance Exchange v. Adamson Motors
514 N.W.2d 807 (Court of Appeals of Minnesota, 1994)
Hershey v. Physicians Health Plan of Minnesota, Inc.
498 N.W.2d 519 (Court of Appeals of Minnesota, 1993)
Share Health Plan, Inc. v. Marcotte
495 N.W.2d 1 (Court of Appeals of Minnesota, 1993)
Powell v. Blue Cross and Blue Shield
581 So. 2d 772 (Supreme Court of Alabama, 1990)
Regie De L'Assurance Automobile Du Quebec v. Jensen
399 N.W.2d 85 (Supreme Court of Minnesota, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
389 N.W.2d 537, 1986 Minn. App. LEXIS 4469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/regie-de-lassurance-automobile-du-quebec-v-jensen-minnctapp-1986.