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Olson v. Blesener9/4/2001
Steven Olson, a 50% shareholder in, and employee of, respondent construction company, was injured on the job by appellant's negligence. Respondent, which had no workers' compensation insurance to cover the employee, paid the employee's wages until he returned to work. Respondent then successfully sued appellant to recover the wages it voluntarily paid to the employee while he was not working because of injuries caused by appellant's negligence. Appellant contends that the district court erred because Minnesota does not recognize a common-law subrogation action between an employer and third-party wrongdoer for an injury to an employee except for payments the employer is required to make under the workers' compensation act.
FACTS
On November 19, 1996, Steven Olson was injured while working as an employee of respondent Olson Brothers Construction, Inc. He was a 50-percent shareholder in Olson Brothers, along with his brother, and was also a key employee. Olson worked as construction manager and finish carpenter at the time of his injury .
Respondent contracted with appellant Fred M. Blesener for a mobile crane and crane operator for the purpose of raising wooden trusses to the top of walls at a construction site in Northfield, Minnesota. While operating the mobile crane, the operator lost a load of ten wooden trusses he was lifting, which fell and knocked Olson off the wall. Olson landed on the concrete garage floor below and sustained serious injuries. Respondent had no workers' compensation insurance to cover the loss, and voluntarily continued to pay Olson's wages until he returned to work.
Olson commenced a personal-injury action against appellant. A jury returned a verdict in Olson's favor, apportioning 80% of the negligence to appellant and 20% to Olson. Olson was awarded damages of approximately $615,000 for his injuries, including $87,000 for income lost between the time of the accident and the time of trial. The underlying tort case was tried so as to avoid double recovery by plaintiff Steven Olson. Both parties to the trial were aware of the claim for past wages voluntarily paid, and no evidence of lost wages was introduced at trial.
By stipulation dated January 27, 2000, the parties agreed that respondent paid Olson $13,906.93 in salary and benefits during his period of disability, and that respondent's claim against appellant would be $11,125.54, which was determined by multiplying the sum paid by the 80% causal fault attributed to appellant. The parties stipulated, among other things, that the wages paid to Olson were reasonable and related to the accident, that there was no duplicate recovery for the wages paid to Olson, and that the district court could decide as a matter of law whether or not respondent could recover the wages paid to Olson from appellant. In an order and memorandum dated December 11, 2000, the district court concluded that respondent was entitled to recover $11,125.54 from appellant. On January 17, 2001, the district court ordered judgment against appellant, and this appeal now follows.
ISSUE
Does an employer have the right to recover from a third party, through subrogation or indemnity, wages voluntarily paid to an employee injured by the third party?
ANALYSIS
There is no dispute as to the facts; the issue presented is solely a question of law. The application of law to stipulated facts is a question of law, which this court reviews de novo. Morton Bldgs., Inc. v. Commissioner of Revenue, 488 N.W.2d 254, 257 (Minn. 1992).
Respondent asserted a common-law subrogation or indemnity claim against appellant. Respondent reasoned that by paying Ols
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