823 N.W.2d 669
Minn. Ct. App.2012Background
- Kolberg-Pioneer, a Tennessee corporation, was sued in Montana federal court for strict product liability arising from a silo it sold.
- The silo was manufactured by Belgrade Steel Tank Company, a Minnesota corporation, which sold it to Kolberg who then sold it to Hall-Perry Equipment (Montana).
- Envirocon, a Montana-based environmental-remediation company, later used the silo and Ficek was injured by an exploding hatch in Montana.
- Kolberg sued Belgrade in Minnesota state court for common-law indemnity seeking to recover defense costs and any settlement amounts.
- Belgrade had settled with Ficek in the Montana action; under Montana law, that settlement extinguished Belgrade’s duty to indemnify Kolberg.
- The district court applied Montana law to the indemnity claim and granted summary judgment for Belgrade; Kolberg appeals, challenging the choice-of-law result.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What law governs indemnity between seller and manufacturer? | Kolberg argues Minnesota law should apply. | Belgrade argues Montana law should apply. | Minnesota law applies. |
Key Cases Cited
- Farr v. Armstrong Rubber Co., 288 Minn. 83 (Minn. 1970) (indemnity when liability stems from passive seller)
- Durden v. Hydro Flame Corp., 983 P.2d 949 (Mont. 1999) (Montana settlement precludes indemnity)
- Allstate Ins. Co. v. Hague, 449 U.S. 302 (U.S. 1981) (interstate choice-of-law prerequisites; conflict existences)
- Jepson v. Gen. Cas. Co. of Wis., 513 N.W.2d 467 (Minn. 1994) (five choice-influencing considerations)
- Nodak Mut. Ins. Co. v. Am. Family Mut. Ins. Co., 604 N.W.2d 91 (Minn. 2000) (conflict existence and governing law)
- Hime v. State Farm Fire & Cas. Co., 284 N.W.2d 829 (Minn. 1979) (contractual/ tort blend and choice factors)
- Myers v. Gov’t Emp. Ins. Co., 302 Minn. 359 (Minn. 1974) (sufficient contacts and forum interests)
- Julien P. Benjamin Equip. Co. v. Blackwell Burner Co., 450 So.2d 901 (Fla. Dist. Ct. App. 1984) (Florida indemnity rule aligned with Minnesota view)