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908 N.W.2d 442
N.D.
2018
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Background

  • Larimore Public School District bus collided with a BNSF train in Jan. 2015; 13 students aboard, one killed and multiple children seriously injured.
  • Total damages from the accident stipulated to exceed $3 million; School District and its insurer deposited $500,000 under N.D.C.C. § 32-12.1-03(2) (statutory cap) and sought interpleader relief.
  • Parents of nine injured children challenged the statutory damage cap as unconstitutional under N.D. Const. art. I, § 9 (open courts), art. I, § 13 (jury trial), art. I, § 21 (equal protection), and art. IV, § 13 (special laws).
  • District court upheld the cap and discharged the School District and insurer from further liability; parents appealed.
  • The Supreme Court of North Dakota affirmed, holding the cap did not violate the cited constitutional provisions.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Open-courts / remedy (Art. I, § 9) Cap denies meaningful redress and access to courts; abridges guaranteed remedy Right of access not absolute; cap does not totally bar recovery and serves public interest Cap does not violate open-courts clause; not an absolute bar or so low as to be equivalent to none
Jury-trial (Art. I, § 13) Cap invades jury province by limiting recovery that juries historically determined Cap preserves jury factfinding; only limits recoverable amount from political subdivisions Cap does not violate jury-trial clause; jury may decide facts though recovery from subdivision is capped
Equal protection (Art. I, § 21) Cap irrationally treats victims differently by tortfeasor identity and limits recovery for catastrophic multi-victim events Legislature reasonably distinguished political subdivisions due to fiscal realities and mandated public services Intermediate scrutiny applies; statute bears close correspondence to legitimate legislative goals and is constitutional
Special/local laws (Art. IV, § 13) Cap effectively creates special protections or disparate treatment Cap is a general law applying equally to similarly situated political subdivisions and claimants Statute is a general law and does not violate special-law provision

Key Cases Cited

  • Kitto v. Minot Park Dist., 224 N.W.2d 795 (N.D. 1974) (judicially abrogated governmental immunity and recognized legislature may limit liability)
  • Nelson v. Gillette, 571 N.W.2d 332 (N.D. 1997) (political-subdivision liability generally equated to private liability in context)
  • Arneson v. Olson, 270 N.W.2d 125 (N.D. 1978) (statutory scheme requiring nonjury trials violated right to jury trial; intermediate scrutiny for damage limits in malpractice context)
  • Bouchard v. Johnson, 555 N.W.2d 81 (N.D. 1996) (open-courts analysis; statutory immunities construed to avoid absolute bar to remedy)
  • Herman v. Magnuson, 277 N.W.2d 445 (N.D. 1979) (upheld filing-condition statutes under governmental fiscal-planning rationale)
  • Zauflik v. Pennsbury Sch. Dist., 104 A.3d 1096 (Pa. 2014) (upheld similar municipal damages cap under intermediate scrutiny; legislative balancing of public fisc vs. claimant recovery)
  • Cauley v. City of Jacksonville, 403 So. 2d 379 (Fla. 1981) (statutory municipal damage caps do not inherently violate open-courts provisions)
  • Wells v. Panola Cty. Bd. of Educ., 645 So. 2d 883 (Miss. 1994) (upheld school-district liability cap against open-courts challenge)
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Case Details

Case Name: Larimore Public School District No. 44 v. Aamodt
Court Name: North Dakota Supreme Court
Date Published: Mar 19, 2018
Citations: 908 N.W.2d 442; 2018 ND 71; 20170258
Docket Number: 20170258
Court Abbreviation: N.D.
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    Larimore Public School District No. 44 v. Aamodt, 908 N.W.2d 442