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State Farm Fire and Casualty v. Aquila Inc.6/14/2005
pipeline was not an improvement to real property under Minn. Stat. § 541.051 but an addition to the utility's distribution system. Therefore, we reverse the district court insofar as the court ruled that section 541.051 bars appellants' claim against Aquila.
Unlike Aquila, Northern Pipeline relinquished all ownership and control of the pipeline after installation. Moreover, the pipeline was not part of Northern Pipeline's distribution system; nor, in fact, did it serve any commercial purpose for Northern Pipeline after installation. It follows that with respect to Northern Pipeline, the pipeline is an improvement to real property for the purposes of Minn. Stat. § 541.051, and the statute bars appellant's suit against Northern Pipeline. Therefore, we affirm the district court's granting of summary judgment in favor of Northern Pipeline.
II.
Appellants contend that the district court erred (1) in dismissing appellants' claims on summary judgment where appellants alleged negligence and negligence per se against respondents, not merely as to the installation of the natural-gas pipeline, but also as to the inspection, maintenance, and/or repair of the natural-gas system; and (2) in determining that no negligence existed even though a prima facie showing by appellants was all that was required, discovery had only just begun, and substantive negligence issues were not briefed by the parties.
After holding that Minn. Stat. § 541.051 applied, the district court examined the statute's exception under subdivision 1(c), which states that " othing in this section shall apply to actions for damages resulting from the negligence in the maintenance, operation or inspection of the real property improvement against the owner or other person in possession." Minn. Stat. § 541.051, subd. 1(c). With respect to Aquila, the district court held that because appellants failed to provide evidence of notice, subdivision 1(c) did not apply; specifically, the court said Aquila "had no reasonable notice of an existing or potential danger nor did it possess any information that would suggest to a person of ordinary care and prudence that some part of the polyethylene system was unsafe for the transportation . . . of gas." The district court held that Northern Pipeline could not be held liable under subdivision 1(c) because Northern Pipeline had no subsequent involvement as owners or controllers of the pipeline after installation in 1990. We agree as to Northern Pipeline. With respect to Aquila, the application of the exception in subdivision 1(c) is rendered moot by our holding that Minn. Stat. § 541.051 does not bar appellants' claims against Aquila.
Notwithstanding the conclusion that section 541.051 does not bar appellants' claims against Aquila, there remains the issue of whether appellants have made a showing of Aquila's negligence sufficient to withstand summary judgment. Appellants first make the procedural argument that the district court was premature to grant summary judgment when "only preliminary discovery had occurred, and the discovery deadline set by the scheduling order, when issued, was several months ahead of when the court ruled on respondents' summary judgment motions." But Minn. R. Civ. P. 56.06 provides that "the court may refuse the application for judgment or may order a continuance to permit affidavits to be obtained or depositions to be taken or discovery to be had or may make such other order as is just." Appellants do not indicate that they requested a continuance from the district court for further discovery. Moreover, appellants not only opposed respondents' motions for summary judgment, but brought their own motion for summary judgment.
Appell
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