AUTO OWNERS INSURANCE COMPANY, Respondent, v. Chong Suk PERRY, Appellant.
No. A06-1235.
Supreme Court of Minnesota.
May 29, 2008.
749 N.W.2d 324
BY THE COURT:
/s/Alan C. Page
Associate Justice
Michael Alen Bryant, Bradshaw & Bryant, PLLC, Waite Park, MN, for Appellant.
Judith Ann Mlinar Seeberger, Reding & Pilney PLLP, Lake Elmo, MN, for Respondent.
James S. Ballentine, Schwebel, Goetz & Sieben, PA, Minneapolis, MN, for MN Assoc. for Justice Amicus.
OPINION
ANDERSON, G. BARRY, Justice.
Appellant Chong Suk Perry applied to respondent Auto Owners Insurance Company for survivors’ economic loss benefits after her boyfriend, Daniel Savage, with whom she resided, died in a motor vehicle accident. Auto Owners denied Perry‘s claim, and Perry petitioned for arbitration. After staying arbitration, the district court granted Auto Owners’ motion for summary judgment. The court of appeals held that the district court did not err in concluding that the definition of “dependent” in
Respondent Auto Owners Insurance Company issued a garage liability insurance policy to Kincaids Cars, Inc., an automobile sales company owned by Daniel Savage. Savage was fatally injured in a motor vehicle accident while driving a vehicle owned by the company. Auto Owners paid out $20,000 in medical benefits and $2,000 in non-medical benefits under the policy.
For approximately 7 years preceding his death, Savage had lived in Savage, Minnesota, with his girlfriend, appellant Chong Suk Perry. According to Perry, she and Savage owned their home together, had a joint checking account, and pooled their financial resources. Perry applied for survivors’ economic loss benefits in June 2005, and Auto Owners denied her claim on the ground that the policy provides for the payment of survivors’ economic loss benefits only to the decedent‘s surviving spouse and children. After Perry sought arbitration of her claim, Auto Owners commenced an action for declaratory judgment and brought a summary judgment motion. Auto Owners contended that Perry failed to qualify as a “dependent” under the insurance policy and that the policy comported with the requirements of the No-Fault Act. The No-Fault Act requires insurers to offer survivors’ economic loss benefits to a decedent‘s “surviving dependents.”
For the purposes of definition under
section 65B.41 to 65B.71 , the following described persons shall be presumed to be dependents of a deceased person: (a) a wife is dependent on a husband with whom she lives at the time of his death; (b) a husband is dependent on a wife with whom he lives at the time of her death; (c) any child while under the age of 18 years, or while over that age but physically or mentally incapacitated from earning, is dependent on the parent with whom the child is living or from whom the child is receiving support regularly at the time of the death of such parent. Questions of the existence and the extent of dependency shall be questions of fact, considering the support regularly received from the deceased.
Id. The district court granted Auto Owners’ summary judgment motion.
The court of appeals affirmed the district court‘s grant of summary judgment, concluding that
Perry concedes that she does not qualify as a dependent under the terms of the insurance policy; she argues, rather, that by providing for the payment of survivors’ economic loss benefits only to a decedent‘s surviving spouse and children, the policy does not comply with the minimum coverage requirements prescribed in
The key to this dispute is an argument about the interpretation of the final sentence of the second paragraph of
We engaged in our most extensive assessment of
Lending further support to Auto Owners’ plain language interpretation of
Payments shall be made to the dependent, except that benefits to a dependent who is a child or an incapacitated person may be paid to the dependent‘s surviving parent or guardian. Payments shall be terminated whenever the recipient ceases to maintain a status which if the decedent were alive would be that of dependency.
“Status” is defined as “[a] person‘s legal condition,” examples of which include “the status of a father” and “the status of a wife.” Black‘s Law Dictionary 1447 (8th ed.2004). Given that a live-in girlfriend does not have a “status” under the law akin to that of a spouse or child and that a decedent‘s surviving spouse and children are identified as presumed dependents in the preceding paragraph of
Because Perry is not Savage‘s surviving spouse or child, she does not have a “status” that she must “maintain” in order to continue receiving benefits pursuant to
Evolution and Legislative History of Minn.Stat. § 65B.44, subd. 6
We resort to the former law and legislative history to ascertain the legislative intent behind an ambiguous statute.
The legislature deleted the phrase “[i]n all other cases” as part of its amendment of the No-Fault Act in 1975. Act of Mar. 28, 1975, ch. 18, § 5, 1975 Minn. Laws 208, 210. Senator Jack Davies explained to the Senate Committee on Labor and Commerce that the 1975 legislation was necessary because “in preparing legislation for a law with the magnitude, scope and complexities of the No-fault law it is not unusual that drafting errors, omissions, ambiguities and misleading provisions get into the law.” Hearing on S.F. 28, S. Comm. Labor and Commerce, 69th Minn. Leg., Jan. 14, 1975 (minutes). Senator Davies noted that “in some instances the present language is awkward and in others unintended language will be removed from the law, but that the bill does not make any substantive changes in the law.” Id.
As is argued by Auto Owners, the phrase “[i]n all other cases” may have been “unintended language” or one of the “misleading provisions” that the legislature intended to remove from the No-Fault Act. See id. The dissent agrees that “[t]he purpose of the change was to eliminate confusing and misleading language,” and we believe that the language is confusing and misleading because it did not accurately reflect the intention of the legislature to limit dependency qualification to a decedent‘s surviving spouse and children. Auto Owners’ contention is supported by our presumption that the adoption of an amendment is indicative of legislative intent to effect “some change in the existing law.” Bhd. of Ry. & S.S. Clerks, Freight Handlers, Express & Station Employees, Lodge 364 v. State, 303 Minn. 178, 195, 229 N.W.2d 3, 13 (1975). By eliminating the phrase “[i]n all other cases” from
Legislative Purposes Behind the No-Fault Act
In ascertaining the legislative intent behind an ambiguous statute, we also consider the mischief to be remedied and the object to be attained.
Amici curiae OutFront Minnesota and Minnesota Association for Justice suggest that the adoption of Perry‘s interpretation of
In light of the unambiguous language of
Affirmed.
DIETZEN, J., not having been a member of this court at the time of the argument and submission, took no part in the consideration or decision of this case.
PAGE, Justice (dissenting).
Today, the court misinterprets the definition of “dependent” under Minnesota‘s No-Fault Act,
Minnesota‘s No-Fault Act states:
Survivors economic loss benefits, in the event of death occurring within one year of the date of the accident, caused by and arising out of injuries received in the accident, are subject to a maximum of $200 per week and shall cover loss accruing after decedent‘s death of contributions of money or tangible things of economic value, not including services, that surviving dependents would have received from the decedent for their support during their dependency had the decedent not suffered the injury causing death.
For the purposes of definition under
section 65B.41 to 65B.71 , the following described persons shall be presumed to be dependents of a deceased person: (a) a wife is dependent on a husband with whom she lives at the time of his death; (b) a husband is dependent on a wife with whom he lives at the time of herdeath; (c) any child while under the age of 18 years, or while over that age but physically or mentally incapacitated from earning, is dependent on the parent with whom the child is living or from whom the child is receiving support regularly at the time of the death of such parent. Questions of the existence and the extent of dependency shall be questions of fact, considering the support regularly received from the deceased. Payments shall be made to the dependent, except that benefits to a dependent who is a child or an incapacitated person may be paid to the dependent‘s surviving parent or guardian. Payments shall be terminated whenever the recipient ceases to maintain a status which if the decedent were alive would be that of dependency.
In 1984, we considered for the first time how to interpret
We reasoned that, “[i]f dependency were limited to the presumed categories, there would be no need for further inquiry into the existence of dependency based on regular receipt of support. Consideration of regularly received support is not relevant to the dependency of those persons entitled to a presumption.” Id. at 122. While Peevy was ultimately decided on the insurance policy‘s language, I believe the Peevy court‘s reasoning underlying its interpretation of subdivision 6 was sound then and continues to be sound today.2
We interpreted
The Act provides that surviving dependents of a person killed in a motor vehicle accident are entitled to certain survivors’ economic loss benefits. In defining who qualifies as a surviving dependent, the Act‘s language identifies three classes of people who are presumed to be a dependent of the deceased person: (1) a wife living with her husband at the time of the husband‘s death; (2) a husband living with his wife at the time of the wife‘s death; and (3) the decedent‘s children under the age of 18 or if over 18 and also incapacitated and receiving support from the decedent at the time of the decedent‘s death.
A plain reading of the Act‘s language strongly suggests, contrary to the court‘s holding, that there are people other than those in the presumed classes who may qualify as a dependent of a deceased person. The statute provides “the following described persons shall be presumed to be dependents of a deceased person,” id., which, by implication, indicates that there are individuals who could qualify as dependents but are not described in the presumed classes. The court, however, concludes that in amending subdivision 6 by removing the phrase “in all other cases,” the legislature intended to make ineligible for dependency benefits all of those persons who were previously eligible for such benefits except those the statute presumes to be dependents. I believe that conclusion is wrong.
When construing statutory language, we ascertain legislative intent by considering:
- the occasion and necessity for the law;
- the circumstances under which it was enacted;
- the mischief to be remedied;
- the object to be attained;
- the former law, if any, including other laws upon the same or similar subjects;
- the consequences of a particular interpretation;
- the contemporaneous legislative history; and
- legislative and administrative interpretations of the statute.
Here, the legislature enacted subdivision 6 in part “to relieve the severe economic distress of uncompensated victims.”
Consideration of “contemporaneous legislative history” and the former law also inform our understanding of the legislature‘s intent in enacting
The court concludes from the deletion that “the legislature likely intended to limit the definition of ‘dependent’ to a decedent‘s surviving spouse and children.” However, it reaches the opposite conclusion reached in Peevy, when we determined that the legislative history of the amendment to subdivision 6 supports an interpretation indicating an intent to create an open category of dependents other than those persons presumed to be dependent. 346 N.W.2d at 122. The sponsor of the amendment, Senator Jack Davies, noted that “in some instances the present language is awkward and in others unintended language will be removed from the law, but that the bill does not make any substantive changes in the law.” Hearing on S.F. 28, S. Comm. Labor and Commerce, 69th Minn. Leg., Jan. 14, 1975 (minutes) (emphasis added). In Peevy, we stated that
[t]he reason for the change, in Senator Davies’ words, was that “dependency has to be determined on a continuing basis rather than as of the time of death.” There was no discussion of the elimination of the language “[i]n all other cases.” The language allowing inquiry into the existence of dependency, however, may make the “[i]n all other cases” language unnecessary and could explain its elimination in the redrafting. In light of Senator Davies’ statement that the amendment made no substantive changes, the legislative history supports a conclusion that there can be
dependents under the statute other than the presumed dependents.
Contrary to the court‘s reading of the statute, it is more logical and a plainer reading of the statute to infer that the legislature effected the change to have courts look at the factual question of dependency in both presumed classes and nonpresumed classes of dependents. If the legislature intended to enact a major substantive change to subdivision 6 by limiting the survivors’ benefits to persons in the presumptive classes, the amendment‘s sponsor would not have had a reason to indicate that the amendment makes no substantive change. Further, the change would have been more explicit, more clear, and less cryptic. The legislature certainly knows how to explicitly limit access to dependency benefits. See, e.g.,
We also consider the consequences of a particular interpretation when construing a statute.
Finally, I would note that courts and commentators, until now, have tended to interpret
For all of the above reasons, I conclude that the category of persons who are eligible to receive survivors’ benefits as dependents of a deceased person who dies as a result of injuries received in a motor vehicle accident is not limited to those persons presumed to be dependents under
Therefore, I respectfully dissent.
MEYER, Justice (dissenting).
I join in the dissent of Justice Page.
Notes
- A person‘s legal condition, whether personal or proprietary; the sum total of a person‘s legal rights, duties, liabilities, and other legal relations, or any particular group of them separately considered <the status of a landowner>. 2. A person‘s legal condition regarding personal rights but excluding proprietary relations <the status of a father> <the status of a wife>. 3. A person‘s capacities and incapacities, as opposed to other elements of personal status <the status of minors>. 4. A person‘s legal condition insofar as it is imposed by the law without the person‘s consent, as opposed to a condition that the person has acquired by agreement <the status of a slave>.
