Lead Opinion
OPINION
Appellant challenges the district court’s award of summary judgment, arguing that the district court erred in its determination that (1) Wisconsin’s statute of limitations governs the underlying lawsuit and bars appellant’s claims as untimely and (2) Minnesota lacks personal jurisdiction over respondent. Because Minnesota’s statute of limitations governs the underlying lawsuit, and because Minnesota may exercise personal jurisdiction over respondent consistent with federal due process, we reverse and remand.
FACTS
For the purpose of the district court’s summary judgment award, the relevant facts are undisputed. On January 9, 2004, a vehicle driven by respondent Judith M. Birch collided head-on with a vehicle driven by appellant Genna L. Christian. The collision occurred on the Blatnik Bridge, which spans the St. Louis River between Superior, Wisconsin and Duluth. Christian was driving toward Wisconsin; Birch was driving toward Minnesota, but in the Wisconsin-bound lane. Birch was intoxicated. According to Christian’s uncontro-verted affidavit, “The accident occurred only feet from what is commonly referred to as the ‘arch’ or center of the bridge. Said accident was directly above the St. Louis [Rjiver.”
Minnesota emergency vehicles responded to the collision scene and transported Christian to a medical facility in Minnesota, where she received medical care. Wisconsin police officers also responded to the scene. The Wisconsin officers arrested Birch for driving while intoxicated. Criminal charges were subsequently filed against Birch in Wisconsin, and she plead
Both Christian and Birch are Wisconsin residents. Christian had a passenger in her vehicle at the time of the collision. Christian’s passenger is a Minnesota resident. Birch does not own any property in Minnesota and is not employed in Minnesota.
Christian sued Birch in Minnesota, asserting a negligence claim. Christian served Birch at her home in Wisconsin sometime after May 18, 2007. Birch moved to dismiss under Minn. R. Civ. P. 12.02(a) (failure to state a claim upon which relief can be granted), (b) (lack of personal jurisdiction), and (f) (lack of subject-matter jurisdiction). Because the parties submitted matters outside of the pleadings for the district court’s consideration, the district court treated Birch’s motion as one for summary judgment under Minn. R. Civ. P. 56. The district court concluded that Minnesota has subject-matter jurisdiction, but determined that Wisconsin’s three-year statute of limitations barred Christian’s lawsuit and that Christian had therefore failed to state a claim for which relief could be granted. The district court also concluded that Minnesota lacked personal jurisdiction over Birch. The district court granted summary judgment for Birch on both grounds. This appeal follows.
ISSUES
I. Did the district court err in its choice-of-law analysis by failing to consider and determine whether the relevant conflicting laws were procedural or substantive?
II. Did the district court err by concluding that it lacked personal jurisdiction over respondent?
ANALYSIS
On appeal from summary judgment, an appellate court determines (1) whether there are any genuine issues of material fact and (2) whether the district court erred in its application of the law. Olmanson v. LeSueur County,
I.
We first consider whether the district court erred by determining that Wisconsin’s statute of limitations governs Christian’s lawsuit. The district court’s determination was based on a choice-of-law analysis. When a party asserts that a case brought in Minnesota may have a significant relationship to more than one state, the court must consider whether there is a choice-of-law issue. See William M. Rich-man & William L. Reynolds, Understanding Conflict of Laws § 1(c) (3rd ed.2002) (stating that “[wjhenever a legal problem involves incidents or issues concerning more than one state, a court must determine which state’s legal rules should control”). “Where a conflict of law question has not been raised, Minnesota law will govern.” Miller v. A.N. Webber, Inc.,
Minnesota courts have concurrent subject-matter jurisdiction over claims arising from events that occur on boundary waters. Minn.Stat. § 484.02
But Wisconsin also has concurrent jurisdiction over the lawsuit. Wis. Stat. § 1.01 (2007) (“The sovereignty and jurisdiction of this state extend to all places within the boundaries declared in article II of the constitution.”); see also Wis. Const, art. II, § 1 (adopting territorial boundaries of the State of Wisconsin). Accordingly, the case has a significant relationship to Wisconsin and a choice-of-law issue arises. Birch raised the choice-of-law issue in summary-judgment proceedings before the district court, and the district court properly considered whether the Minnesota or Wisconsin statute of limitations governs this case. The district court’s resolution of the choice-of-law issue is a question of law, which this court reviews de novo. Danielson v. Nat’l Supply Co.,
The first step in a choice-of-law analysis is to consider whether there is a conflict between the legal rules. Jepson v. Gen. Cas. Co. of Wis.,
The second step in a choice-of-law analysis is to consider whether each state’s statute may be constitutionally applied. Jepson,
Third, if both states’ substantive laws can be constitutionally applied, the district court then analyzes five choice-influencing factors to determine which state’s law governs: “(1) predictability of result; (2) maintenance of interstate and international order; (3) simplification of the judicial task; (4) advancement of the forum’s governmental interest; and (5) application of the better rule of law.” Jepson,
Minnesota courts have consistently recognized the distinction between procedural and substantive law in choice-of-law analysis.
Traditionally when a conflict-of-law issue arises, the preliminary step is to decide whether the question is substantive or procedural. If the matter is one of substantive law, Minnesota applies a multi-step choice-of-law analysis, which includes application of five choice-influencing considerations, to determine which state’s law applies.... On the other hand, if the matter is one of procedural law, Minnesota follows the almost universal rule that matters of procedure and remedies [are] governed by the law of the forum state.
Danielson,
The parties here each rely on Daniel-son, which involved a choice-of-law analysis concerning whether to apply the Minnesota, Texas, or Arizona statute of limitations to a claim brought in Minnesota, arising out of an injury that occurred in Arizona, allegedly caused by a product purchased in Texas. Danielson,
Birch misinterprets Danielson. In Danielson, we explicitly recognized that in a choice-of-law analysis, we must first determine “whether the question is substantive or procedural.” Id. at 5. After considering Minnesota caselaw, we held that Minnesota’s statute of limitations is procedural and that the Minnesota statute of limitations therefore governed. Id. at 5-6. But we also stated, “it may be inappropriate to use the procedural classification” and proceeded to engage in the substantive Milkovieh analysis. Id. at 6. After conducting both analyses, we held that Minnesota’s statute of limitations applied both under the procedural-versus-substantive analysis and under the Milko-vich analysis. Id. at 9. But Danielson did not hold that the procedural-versus-substantive determination need not be made in a choice-of-law analysis. To the contrary, we recognized that statutes of limitations are procedural and that the law of the forum state governs procedural issues. Id. at 6. We simply justified our holding under the Milkovieh analysis, in addition to the procedural-substantive distinction. Id. at 9.
The appellate courts have consistently held that statutes of limitations are procedural. Kennecott Holdings Corp. v. Liberty Mut. Ins. Co.,
While the general rule is that statutes of limitations are procedural for choice-of-law purposes, Minnesota courts have recognized an exception to that general rule. In Danielson, this court stated that “[a] limitation period is substantive when it applies to a right created by statute, as opposed to a right recognized at common law.”
The district court erred in its choice-of-law analysis by failing to consider and determine whether the conflicting statutes of limitations were procedural or substantive. Because statutes of limitations are procedural, there was, and is, no need to engage in a substantive choice-of-law analysis utilizing the Milkovich choice-influencing factors. “[M]atters of procedure and remedies [are] governed by the law of the forum state.” Davis,
II.
We next consider whether the district court erred by determining that it lacked personal jurisdiction over Birch. Whether personal jurisdiction exists is a question of law, which we review de novo. V.H. v. Estate of Birnbaum,
Minnesota courts can assert personal jurisdiction over a nonresident individual if that individual
(1) owns, uses, or possesses any real or personal property situated in this state; or
(2) transacts any business within the state; or
(3) commits any act in Minnesota causing injury or property damage; or
*59 (4) commits any act outside Minnesota causing injury or property damage in Minnesota, subject to the following exceptions when no jurisdiction shall be found:
(i) Minnesota has no substantial interest in providing a forum; or
(ii) the burden placed on the defendant by being brought under the state’s jurisdiction would violate fairness and substantial justice.
Minn.Stat. § 543.19, subd. 1 (2008)
Minn.Stat. § 543.19 affords Minnesota courts personal jurisdiction over a defendant to the full extent of federal due process. Valspar Corp. v. Lukken Color Corp.,
Personal jurisdiction over a nonresident defendant may be found generally or specifically. General personal jurisdiction exists when a nonresident defendant’s contacts with the forum state are so substantial and are of such a continuous and systematic nature that the state may assert jurisdiction over the defendant even for causes of action unrelated to the defendant’s contacts with the forum state. Helicopteros Nacionales de Colombia, S.A. v. Hall,
The district court concluded that it lacked both general and specific personal jurisdiction over Birch. Christian challenges the district court’s determination that specific personal jurisdiction is lacking. Christian contends that the district court could exercise specific personal jurisdiction over Birch because the collision occurred in an area where Minnesota has concurrent jurisdiction. We agree.
The district court’s decision that it lacked personal jurisdiction was based on the unsupported conclusion that the collision occurred in Wisconsin, not in Minnesota. The district court based its decision upon the location of the collision in relation to what the parties and the district court referred to as a “white line” on the bridge. The district court treated this line as a boundary between Minnesota and Wisconsin. But there is no evidence in the record, and we were not cited any legal authority, to support a conclusion that the “white line” is a legally recognized boundary between Minnesota and Wisconsin. And, as discussed in section I of this opinion, there is no dispute that the collision occurred in an area where Minnesota has concurrent jurisdiction. Minn.Stat. § 484.02; George, 60 Minn, at 505,
Because the collision occurred in an area where Minnesota has concurrent
We also consider whether Minnesota’s exercise of personal jurisdiction is consistent with federal due process. When determining whether a defendant has sufficient minimum contacts with the forum state to satisfy due process, courts use a five-factor test. Vikse v. Flaby,
With regard to the primary due-process factors (i.e., the quantity of contacts, the nature and quality of contacts, and the source and connection of those contacts to the cause of action), Birch’s only recorded contact with Minnesota is her course of travel over the St. Louis River on the Blatnik Bridge. But Christian’s cause of action arises out of, and directly relates to, Birch’s course of travel on the Blatnik Bridge and the resulting motor-vehicle collision. Thus, the causal connection between Birch’s single recorded contact with Minnesota and Christian’s lawsuit is substantial. And “[e]ven a single, isolated transaction between a nonresident and a forum state may be sufficient to justify the exercise of personal jurisdiction.” KSTP FM, LLC v. Specialized Commc’n, Inc.,
“When, as here, a nonresident has had few contacts with Minnesota, the nature and quality of those contacts become dispositive. In evaluating the nature and quality of a contact, this court must ascertain whether appellant has purposefully availed itself of the benefits and protection of Minnesota law.” Id. at 924 (citation omitted). By driving into an area where Minnesota exercises concurrent jurisdiction, Birch purposefully availed herself of the benefits and protection of Minnesota law. See Green v. Wilson,
As to the secondary factors, Minnesota has an interest in providing a forum for those injured in this state. See Jepson,
Finally, Birch argues that Minnesota is not entitled to exercise its jurisdiction because Wisconsin previously exercised jurisdiction over Birch’s criminal prosecution. But there is no indication that the district court was presented with and considered this argument. Therefore, the issue is not properly before us for review. Thiele v. Stick,
Birch’s argument is based on the first-to-file rule, which provides that when two courts have concurrent jurisdiction, the first to acquire jurisdiction generally has priority to decide the case. See Minn. Mut. Life Ins. v. Anderson,
DECISION
Because the Minnesota statute of limitations governs the underlying lawsuit, and because the district court’s exercise of personal jurisdiction over Birch is authorized by statute and consistent with federal due process, we reverse summary judgment for Birch and remand for further proceedings.
Reversed and remanded.
Notes
. Because this lawsuit was filed in 2007, the statute of limitations as it appears in the 2006 volume of the Minnesota Statutes applies to this case. A 2008 amendment to this statute did not alter any language relevant to our decision here.
Concurrence Opinion
(concurring specially).
I join the majority opinion except for part I, that classifies the choice of what state’s general statute of limitations applies to a claim as a procedural matter and automatically applies the statute of the forum state. I would apply the choice-influencing-consideration analysis which is used to resolve conflicts of substantive law to determine the applicable statute of limitations. Because applying those choice-influencing considerations would produce the same result reached by the majority, I concur.
A. Classification of Statute-of-Limitations Questions
As the majority notes, statute-of-limitations questions were traditionally deemed procedural and subject to the eonflicts-of-law analysis applicable to procedural questions. For three primary reasons, I would use the choice-influencing considerations to resolve conflicts over statutes of limitations. First, as detailed in Danielson v. Nat'l Supply Co.,
Second, as noted in the comments to the Restatement (Second) of Conflict of Laws, this inconsistency in caselaw is not only not limited to Minnesota, but is national and is increasingly being resolved in favor of using the choice-influencing considerations to resolve statute-of-limitations questions:
[Many courts] no longer characterize the issue of limitations as ipso facto procedural and hence governed by the law of the forum. Instead, the courts select the state whose law will be applied to the issue of limitations by a process essentially similar to that used in the case of other issues of choice of law.
Restatement (Second) of Conflict of Laws § 142 cmt. e (1988).
Third, statutes of limitations are ever more viewed as expressions of public policy. See, e.g., Entzion v. Illinois Farmers Ins. Co.,
Based on the foregoing and other considerations identified in Danielson and the Restatement, I would use the choiee-influ-encing-consideration approach to determine the applicable statute of limitations.
B. Application of Choice-Influencing-Consideration Analysis
In deciding conflicts of substantive law, Minnesota adopted the choice-influencing-consideration analysis in Milkovich v. Saari,
(1) Predictability of Result
This factor applies “primarily to consensual transactions where the parties desire advance notice of which state law will govern in future disputes.” Medtronic, Inc. v. Advanced Bionics Corp.,
(2) Maintenance of Interstate Order
This factor addresses whether the application of Minnesota or Wisconsin law would manifest disrespect of either state or impede the interstate movement of people and goods. Danielson,
(8) Simplification of Judicial Task
In the context of the application of a statute of limitations, the consideration of the simplification of the judicial task is often thought to be minor. Minnesota district courts are capable of applying either the Minnesota or Wisconsin statute of limitations. However, given the complexities and quirks in any state law, the forum has a modestly simpler task in applying its law. This gives a slight preference to use of Minnesota law by a Minnesota court.
(I) Advancement of the Forum’s Governmental Interests
The fourth factor involves inquiry into which “choice of law most advances a significant interest of the forum [state].” Jepson,
As we discussed in Danielson, Minnesota has a strong interest in fair compensation of tort victims. Id. “We have even refused to apply our law when the law of another state would better serve to compensate a tort victim.” Jepson,
(5) Application of the Better Rule of Law
The fifth and final factor, the application of the better rule of law, is addressed when the other factors are inconclusive. Medtronic,
In sum, the choice-influencing considerations favor application of Minnesota law. Because I agree that the district court
