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State Farm Fire and Casualty v. Aquila Inc.6/14/2005
1, but was instead merely an addition to Aquila's natural-gas distribution system. Relying on Johnson v. Steele-Waseca Coop. Elec., 469 N.W.2d 517, 519 (Minn. App. 1991), review denied (Minn. July 24, 1991), appellants argued that "even if the newly installed polyethylene gas pipes constitute an 'improvement,' which [appellants] dispute, this improvement is an addition to Aquila's distribution system." Appellants further argued, quoting Johnson, 469 N.W.2d at 520, that even if the pipeline is an improvement to real property, "Minn. Stat. § 541.051 does not protect the installer/owner from its own . . . negligence."
The district court held that appellants' suit was time-barred as to both respondents by Minn. Stat. § 541.051, and granted respondents' motions for summary judgment. In doing so, the district court first ruled that Aquila's pipeline constituted an improvement to real property. The court then determined that appellants' injuries arose out of the defective and unsafe condition of the pipeline. Finally, the district court considered section 541.051, subd. 1(c), which creates an exception for suits based on the negligence of owners or persons in possession of an improvement to real property. The court ruled that because Aquila did not have any notice of an unsafe condition, appellants failed to present evidence that Aquila was negligent in the maintenance, operation, or inspection of the pipeline, and therefore the exception did not apply. As to Northern Pipeline, the court ruled that the exception did not apply, because Northern Pipeline relinquished all control over the pipeline system after installation in 1990 and never owned or possessed it. This appeal follows.
ISSUES
I. Did the district court err in deciding that the natural-gas pipeline constituted an improvement to real property under Minn. Stat. § 541.051 (2004)?
II. Did the district court err in determining that no negligence existed?
ANALYSIS
On appeal from summary judgment, this court asks whether there are any genuine issues of material fact and whether the district court erred in its application of the law. State by Cooper v. French, 460 N.W.2d 2, 4 (Minn. 1990). In doing so, this court views the evidence in the light most favorable to the party against whom judgment was granted. Fabio v. Bellomo, 504 N.W.2d 758, 761 (Minn. 1993). The construction and applicability of a statute of limitations is a question of law subject to de novo review. Benigni v. County of St. Louis, 585 N.W.2d 51, 54 (Minn. 1998).
I.
Appellants contend that the district court erred in holding that the natural-gas pipeline owned by Aquila was an improvement to real property under Minnesota's ten-year statute of repose for injuries arising out of improvements to real property. See Minn. Stat. § 541.051 (2004). This statute provides in relevant part:
(a) Except where fraud is involved, no action by any person in contract, tort, or otherwise to recover damages for any injury to property . . . arising out of the defective and unsafe condition of an improvement to real property, nor any action for contribution or indemnity for damages sustained on account of the injury, shall be brought against any person performing or furnishing the design, planning, supervision, materials, or observation of construction or construction of the improvement to real property or against the owner of the real property . . . more than ten years after substantial completion of the construction. . . .
(c) Nothing in this section shall apply to actions for damages resulting from negligence in the maintenance, operation or inspection of the real property improvement again
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