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Luna v. Zeeb8/21/2001
Respondent sued appellants in a personal injury action. Based on the jury's verdict, the district court ordered judgment for appellants and awarded them costs and disbursements. After post-judgment cross-motions by the parties, the district court awarded costs and disbursements to each party under Minn. R. Civ. P. 68 and Minn. Stat. ch. 549. Appellants argue that the district court erred in awarding respondent costs and disbursements because appellants were the prevailing party. We conclude that, because the net verdict and the district court's judgment were in appellants' favor, respondent was not entitled to costs and disbursements. Accordingly, we reverse and vacate the award.
FACTS
Respondent Denise Luna brought a personal injury action claim against appellants Amber and Wesley Zeeb. Appellants made a settlement offer of $15,000 pursuant to Minn. R. Civ. P. 68. Respondent rejected the settlement offer and a jury trial was held. Based on the jury's verdict, the district court made the following findings of fact:
1. Defendant Amber Zeeb was negligent in the operation of her motor vehicle on December 3, 1996, which was a direct cause of the accident to the extent of 100 percent thereof.
2. The accident of December 3, 1996, directly caused the injuries sustained by Plaintiff Denise Luna.
3. Plaintiff sustained injuries damages from the date of the accident to the time of the verdict as follows:
A. Past pain, disability, embarrassment and emotional distress $1,000.00
B. Past wage loss $1,000.00
C. Past health care expenses $1,000.00
D. Future pain, disability, embarrassment and emotional distress $0
E. Future wage loss $0
F. Future health care expenses $0
4. Plaintiff Denise Luna did not sustain a permanent injury as a result of the accident on December 3, 1996.
5. Plaintiff Denise Luna did not sustain a disability for 60 days or more cumulative as a result of the accident of December 3, 1996.
The district court made the following conclusion of law:
Defendant entitled to judgment dismissing Plaintiff's cause of action, with their costs and disbursements herein.
Both parties moved the district court for taxation of costs and disbursements. After hearing arguments, the district court awarded costs and disbursements to each party under Minn. R. Civ. P. 68 and Minn. Stat. ch. 549. This appeal followed.
ISSUE
Did the district court err in awarding respondent costs and disbursements under Minn. Stat. ch. 549?
ANALYSIS
A reviewing court is not bound by and need not give deference to a district court's decision on a purely legal issue. Frost-Benco Elec. Ass'n v. Minnesota Pub. Utils. Comm'n, 358 N.W.2d 639, 642 (Minn. 1984). Statutory construction is a question of law, which this court reviews de novo. See Brookfield Trade Ctr., Inc. v. County of Ramsey, 584 N.W.2d 390, 393 (Minn. 1998).
Appellants contend that the district court erred in awarding respondent her costs and disbursements, arguing that respondent was not the prevailing party and did not receive a net verdict in excess of appellants' rule 68 offer. Minn. R. Civ. P. 68 allows a party to make a settlement offer at any time prior to ten days before the trial begins. "If the judgment finally entered is not more favorable to the offeree than the offer, the offeree must pay the offeror's costs and disbursements." Minn. R. Civ. P. 68. Before the statutory deductions, the jury verdict awarded respondent was $3,000, an amount less favorable to respondent than
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