Zoltak v. Walgreen Co.

479 N.W.2d 741, 1992 Minn. App. LEXIS 48, 1992 WL 6562
CourtCourt of Appeals of Minnesota
DecidedJanuary 21, 1992
DocketNos. C2-91-786, C4-91-787
StatusPublished

This text of 479 N.W.2d 741 (Zoltak v. Walgreen Co.) 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
Zoltak v. Walgreen Co., 479 N.W.2d 741, 1992 Minn. App. LEXIS 48, 1992 WL 6562 (Mich. Ct. App. 1992).

Opinion

OPINION

SCHUMACHER, Judge.

Appellant Walgreen Company sought to join a third party, respondent Richard Kressin, in a dram shop action pending in Minnesota. The trial court granted summary judgment for respondent, concluding that the appellant’s costs associated with defending the dram shop action do not constitute “injury or property damage” under Minn.Stat. § 543.19 (1986). The trial court also found that respondent did not have sufficient “minimum contacts” with Minnesota, such that exercising personal jurisdiction would violate due process. We agree that the “injury” alleged by appellant does not fall under Minnesota’s “long-arm statute,” and thus affirm.

FACTS

The facts leading to this appeal are somewhat complex. In the early afternoon of August 28, 1987, Ms. V.J. Milinkovich (Duluth resident) was drinking in a Duluth establishment, Robin Hood Restaurant, which is owned by Walgreen Company (appellant). Milinkovich then drove into Wisconsin where she was involved in an automobile accident. The occupants of the other car (Elmer Zoltak, et al.) were killed. Ms. Milinkovich was convicted of homicide by intoxicated use of a motor vehicle.

At her trial (and at an earlier deposition) Milinkovich alleged that a third vehicle, driven by respondent, Richard Kressin (a Wisconsin resident), caused the accident. Milinkovich stated that she had attempted to pass Kressin on the two-lane highway and he had sped up after she got in the left lane, not allowing her to pass and return to her own lane. She claims this was the reason the head-on collision with Zoltak’s vehicle occurred. Kressin denied any involvement in causing the accident. He claimed he had pulled to the shoulder and then attempted to offer aid.

The surviving family members of those killed in the Zoltak vehicle initiated several civil suits. These individuals brought suits against Milinkovich and Kressin in Wisconsin. They also brought a “dram shop” action against appellant in Minnesota, alleging the restaurant had illegally served alcohol to Milinkovich when she was already obviously intoxicated. Appellant attempted to join Kressin (and his employer, Kastern Heating) in the Minnesota action, alleging a claim for contribution based on Kressin’s allegedly negligent or reckless driving.

Kressin and Kastern Heating moved the court to dismiss them from the Minnesota suit alleging lack of personal jurisdiction. The court granted this motion, finding that Walgreen had failed to demonstrate an appropriate basis for the exercise of jurisdiction over the Wisconsin residents.

Appellant maintains that the Minnesota courts can exercise jurisdiction over Kres-sin and Kastern Heating, even though both are Wisconsin residents, both were served in Wisconsin, and the accident itself occurred in Wisconsin (Kressin had not been in Minnesota the entire day the accident occurred). Appellant believes that the Minnesota “long-arm” statute — Minn.Stat. § 543.19 — applies to create an adequate jurisdictional basis over respondent Kressin (and Kastern).

The statute allows for jurisdiction over non-residents who “commit an act outside Minnesota which causes injury or property damage in Minnesota.” Minn.Stat. § 543.-19, subd. 1(d). Appellant argues that respondent Kressin’s negligent or reckless driving was the actual cause of the accident (not Milinkovich’s intoxication/negli[743]*743gence). Appellant believes that Kressin’s conduct lead to its having to defend against the dram shop action in Minnesota. Appellant argues that the cost of defending against this action constitutes “injury or property damage” in Minnesota and satisfies the long-arm statute. Appellant further alleges it has shown, or with further discovery could show, sufficient “minimum contacts” between respondents Kressin and Kastern Heating to satisfy due process.

The trial court found jurisdiction lacking, concluding the “injury” appellants alleged was not of the type contemplated by § 543.19, subd. 1(d). The trial court also concluded that appellant had not, and could not, demonstrate adequate contacts to satisfy federal due process requirements. The trial court stated Minnesota did not have an interest in allowing appellant’s action. Respondent argued that appellant could intervene in the Wisconsin suit against Kressin for any contribution forthcoming. This appeal resulted.

ISSUE

1. Can appellant demonstrate “injury or property damage” which occurred in Minnesota sufficient to satisfy Minn.Stat. § 543.19, subd. 1(d) and establish personal jurisdiction over respondents?

ANALYSIS

Appellant posits a novel interpretation of Minn.Stat. § 543.19, subd. 1(d) in an attempt to demonstrate that the Minnesota courts can properly exercise personal jurisdiction over respondent in this action. Appellant alleges that respondent’s negligent driving was the proximate cause of the accident which occurred in Wisconsin involving two other vehicles. As a result of the accident, appellant is being sued in Minnesota under Minnesota’s “Dram Shop Act.”

In order for a Minnesota court to exercise personal jurisdiction over a non-resident party, Minn.Stat. § 543.19 must apply. Appellant contends that subdivision 1(d) applies to the present situation. This subsection allows the Minnesota court to exercise jurisdiction over a non-resident who

commits any act outside Minnesota causing injury or property damage in Minnesota subject to (due process limitations).

Appellant argues that respondent’s negligent driving ultimately led to a suit in Minnesota and that appellant’s costs in defending that suit constituted “injury or property damage” as contemplated by Minn.Stat. § 543.19, subd. 1(d). Appellant contends that respondent committed an act outside Minnesota which caused injury in Minnesota — not injury from the car accident directly, but rather “injury” from the resulting litigation surrounding the car accident.

Appellant has cited no case from this jurisdiction or any other which supports the notion that the cost of defending a suit constitutes “injury or property damage” as contemplated by “long-arm” statutes. These statutes were generally enacted to allow a state to exercise jurisdiction over foreign companies which placed their products in the “stream of commerce,” knowing the products would wind up in the forum state. When defects in the products caused injuries to the residents of the forum state, that state wanted to allow its citizens to sue the company in their home state. In portions of “long-arm” statutes like § 543.19, subd. 1(d), the injury itself creates the cause of action, not the earlier act which occurred outside the state. Appellant wants this court to broaden the application of Minn.Stat. § 543.19, subd. 1(d) to include “injuries” arising out of properly brought lawsuits. Such a broadening is not warranted.

Appellant attempts to utilize Chris/Rob Realty v. Chrysler Realty Corp., 260 N.W.2d 456 (Minn.1977) as authority for its position that attorney fees and court costs constitute “injury or property damage” satisfying Minn.Stat. § 543.19, subd. 1(d). Appellant manipulates the word “damages” by positing this case, however. To begin with, Chris/Rob did not address the interpretation of Minn.Stat. § 543.19, subd. 1(d). Chris/Rob, and the cases cited there[744]

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Related

State Ex Rel. Nelson v. Nelson
216 N.W.2d 140 (Supreme Court of Minnesota, 1974)
Ulmer v. O'MALLEY
307 N.W.2d 775 (Supreme Court of Minnesota, 1981)
Schuck v. Champs Food Systems, Ltd.
424 N.W.2d 567 (Court of Appeals of Minnesota, 1988)
Howells v. McKibben
281 N.W.2d 154 (Supreme Court of Minnesota, 1979)
Tarnowski v. Resop
51 N.W.2d 801 (Supreme Court of Minnesota, 1952)
Olmsted County v. Trailer Equipment Warehouses, Inc.
421 N.W.2d 395 (Court of Appeals of Minnesota, 1988)
State v. Hartling
360 N.W.2d 439 (Court of Appeals of Minnesota, 1985)
Chris/Rob Realty v. Chrysler Realty Corp.
260 N.W.2d 456 (Supreme Court of Minnesota, 1977)
Smith v. Chaffee
232 N.W. 515 (Supreme Court of Minnesota, 1930)

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Bluebook (online)
479 N.W.2d 741, 1992 Minn. App. LEXIS 48, 1992 WL 6562, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zoltak-v-walgreen-co-minnctapp-1992.