Swanlund v. Shimano Indus. Corp., Ltd.

459 N.W.2d 151, 1990 Minn. App. LEXIS 806, 1990 WL 115201
CourtCourt of Appeals of Minnesota
DecidedAugust 14, 1990
DocketC0-90-243
StatusPublished
Cited by28 cases

This text of 459 N.W.2d 151 (Swanlund v. Shimano Indus. Corp., Ltd.) 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
Swanlund v. Shimano Indus. Corp., Ltd., 459 N.W.2d 151, 1990 Minn. App. LEXIS 806, 1990 WL 115201 (Mich. Ct. App. 1990).

Opinions

OPINION

SHORT, Judge.

This court granted discretionary review of a trial court’s order denying a motion to amend a complaint to add a claim for punitive damages. On appeal, George and Lu Jean Swanlund argue the trial court erred by applying the wrong legal standard to their motion under Minn.Stat. § 549.191 (1988). We disagree and affirm.

FACTS

This products liability lawsuit is the result of a bicycle accident. George Swan-lund claims the front wheel of his bicycle came loose, causing him to fall violently to the ground and rendering him a quadriplegic. The Swanlunds allege the quick-release bicycle hub manufactured and distributed by respondents Shimano Industrial Corporation, Ltd. and Shimano American Corporation was not equipped with a device that would prevent the wheel from escaping the bicycle fork.

After several years of discovery, the Swanlunds filed a motion to amend their complaint to assert a claim for punitive damages. The trial court denied the motion, finding that the Swanlunds had failed to meet their burden of proof under Minn. Stat. § 549.191.

ISSUES
I. Did the trial court apply the correct legal standard to a motion to amend to plead punitive damages under Minn.Stat. § 549.191 (1988)?
II. Did the trial court correctly conclude the Swanlunds failed to allege a sufficient factual basis for punitive damages?

ANALYSIS

I.

This case requires construction of Minn.Stat. § 549.191, a question of law subject to de novo review. See Doe v. Minnesota State Board of Medical Examiners, 435 N.W.2d 45, 48 (Minn.1989). The statute provides:

After filing the suit a party may make a motion to amend the pleadings to claim punitive damages. The motion must allege the applicable legal basis under section 549.20 or other law for awarding punitive damages in the action and must be accompanied by one or more affidavits showing the factual basis for the claim. At the hearing on the motion, if the court finds prima facie evidence in support of the motion, the court shall grant the moving party permission to [154]*154amend the pleadings to claim punitive damages.

Minn.Stat. § 549.191 (emphasis added).

The supreme court has explained the procedure for amending a complaint to seek punitive damages as follows:

When presented with a motion to permit assertion of a punitive damage claim, the function of the trial court is to do more than “rubber stamp” the allegations in the motion papers. Rather, the judge must ascertain whether there exists pri-ma facie evidence that the defendants acted with “willful indifference.”

Shetka v. Kueppers, Kueppers, Von Feldt & Salmen, 454 N.W.2d 916, 918 n. 1 (Minn.1990).

The term “prima facie” does not refer to a quantum of evidence, but to a procedure for screening out unmeritorious claims for punitive damages. See Black’s Law Dictionary 1071 (5th ed. 1979) (prima facie evidence is evidence which, if unre-butted, would support a judgment in the movant’s favor); Blumberg v. Palm, 238 Minn. 249, 253, 56 N.W.2d 412, 415 (1953) (“[A] prima facie case simply means one that prevails in the absence of evidence invalidating it.”). The statute therefore does not expressly state a quantum of proof which the movant must produce to obtain the amendment.

To prevail at trial, the plaintiff must show “clear and convincing” evidence of willful indifference to the rights or safety of others. Minn.Stat. § 549.20 (1988). We have previously held this quantum of proof is implicitly incorporated into the requirement that the movant present a prima facie case of willful indifference. McKenzie v. Northern States Power Co., 440 N.W.2d 183, 184 (Minn.App.1989). The trial court may not allow an amendment where the motion and supporting affidavits “do not reasonably allow a conclusion that clear and convincing evidence will establish the defendant acted with willful indifference * * *.” Id.

The United States Supreme Court has stated:

It makes no sense to say that a jury could reasonably find for either party without some benchmark as to what standards govern its deliberations and within what boundaries its ultimate decision must fall, and these standards and boundaries are in fact provided by the applicable evidentiary standards.

Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 254-55, 106 S.Ct. 2505, 2513, 91 L.Ed.2d 202 (1986). Thus, the trial court “must view the evidence presented through the prism of the substantive evidentiary burden.” Id. at 254, 106 S.Ct. at 2513. The trial court must determine:

whether a jury could reasonably find either that the plaintiff proved his case by the quality and quantity of evidence required by the governing law or that he did not.

Id. (emphasis in original). We stress that this determination does not require the trial court to make credibility determinations of any kind, and therefore does not denigrate the role of the jury. Id. at 255, 106 S.Ct. at 2513.

The trial court here concluded that the Swanlunds had not presented clear and convincing evidence that Shimano acted with willful indifference to the rights or safety of others. The trial court considered only evidence presented by the Swanlunds, without cross-examination or other challenge. Thus, we conclude the trial court applied the correct legal standard.

We requested at oral argument that the parties submit supplemental briefs on the applicability of Minn.Stat. § 549.191 to the consolidated actions now before us. It now appears the actions against the two Shimano corporations were commenced on different dates, and that section 549.191 has no applicability to the claim against Shimano American Corporation.1

[155]*155We are satisfied, however, that the result would be no different under the standard which existed prior to the effective date of Minn.Stat. § 549.191. Under that standard, the decision to permit or deny a punitive damage amendment was committed to the trial court’s discretion, and a motion to amend could be denied if the trial court determined there was no clear and convincing evidence of willful indifference. See Utecht v. Shopko Department Store, 324 N.W.2d 652, 654 (Minn.1982); Metag v. K-Mart Corp., 385 N.W.2d 864, 866-67 (Minn.App.1986), pet. for rev. denied (Minn. June 23, 1986); 1 D. Herr & R. Haydock, Minnesota Practice § 15.5 (Supp.1989). The trial court’s conclusion that the Swanlunds did not present clear and convincing evidence of willful indifference would support denial of a motion to add a claim for punitive damages under either the current statutory standard or the preexisting standard.

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Cite This Page — Counsel Stack

Bluebook (online)
459 N.W.2d 151, 1990 Minn. App. LEXIS 806, 1990 WL 115201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swanlund-v-shimano-indus-corp-ltd-minnctapp-1990.