*1 even if sion in this case would be the same as- savings and loan federally to chartered it were applicable As a law Midwest Federal.4 Minnesota sociations such as argument result, disagree during to oral compelled we are now was revealed concerning buy property with the trial court’s conclusion to for Walraff intended the clause in the note. in Holi- purposes. investment We indicated enforce day generally Acres that we would limiting law Because Minnesota involving due-on-sale clauses in situations may no the exercise of due-on-sale clauses purposes property the sale of for where, case, longer applied as in this 484; investment, conse- see 308 N.W.2d Loan subject lender is to Federal Home have also quently, in this case we would regulations, Bank Board and because the the clause permitted the enforcement of clause in the note was not limited in its under state law. pro terms to actions the borrower and upon part; part. the transfer of in reversed in vided acceleration Affirmed borrower, we anyone title to other than the J., SIMONETT, part no in the con- took right Federal has the to hold that Midwest this case. sideration or decision of upon the loan the transfer of accelerate for deed5 vendor’s interest in contract gives the transferee
—a transaction that profit- to the Company
fee title—from Gate
sharing trust.6 Court’s decision de Supreme us to reverse the compels
la Cuesta also HOLM, Appellant, 81-1287. of the trial court No. decision Arnold case, due- which involved In that in the uniform on-sale clause contained al., MFG., INC., SPONCO et borrower, Boyne, mortgage agreement, espondents. R Smith, who as property to conveyed No. 81-1133. permission. with TCF’s mortgage sumed the borrower for thereby He became the Supreme Court of Minnesota. When clause.7 purposes of the due-on-sale 31, 1982. Aug. property he attempted to transfer Walraff, the terms of the due-on-sale clause law,
gave right, TCF the under federal
accelerate the loan. We note that our deci- concerning liens or encumbrances applies only the same 4. We note that de la Cuesta mortgage lending regulated by exception, institutions the Federal which is included Home Loan Bank Board under 12 C.F.R. §§ resolution of proper for the forum clause. The (1982). Holiday regulation 541.1-56.9 and other Acres pertains the above this issue as pertinent govern law still all other Minnesota Home Loan the Federal court but is not this that lend funds for institutions home this state 1464(d)(2) § See 12 U.S.C. Bank Board. (1980); mortgages. 509.1(b) (1982). § 12 C.F.R. may possible right 5. It is nevertheless that this approved first transfer Federal 6. Midwest by regulations Federal be limited Home interest, was from the of the vendor’s Snyders 545.8-3(g) Loan Bank Board. 12 C.F.R. § Company Company. to Gate Gate (1982) provides part: Midwest Federal’s consent concedes that respect July any With made loan after of its constitute a waiver transfer did not first right * * security occupied on the a home object to the second. borrower, a Federal association: Shall clause be- not exercise a due-on-sale mortgage provides in Paragraph 13 of the (i) cause of brance subordinate to creation of a lien or other encum- agreements part: herein “The covenants the association’s se- bind, rights * * hereunder contained shall curity instrument *. to, respective successors inure shall Company Fed- Id. Gate contends that Midwest Borrower, subject to the assigns attempt- Lender and regulation eral if it would violate this paragraph provisions hereof.” ed in the note. to enforce the due-on-sale clause unnecessary We have found a determination
Larkin, Hoffman, Daly Lindgren, & Jo- seph W. Anthony Mitchell, and Andrew J. Minneapolis, for appellant. Geer,
Meagher, Markham, Anderson, Ad- amson, Brennan, Flaskamp & R. Gregory Stephens and James F. Roegge, Minneapo- lis, for respondents.
YETKA, Justice. Appellant Holm severely injured on 10, 1973, September when he came in con- high tact with a voltage power line while operating an aerial by ladder manufactured respondent, Sponco Mfg., Inc. Holm against commenced lawsuit Sponco alleg- ing negligence and strict products liability: Appellant stipulated electrocution from high contact with a volt- age wire was that he knew of the danger, and that he was familiar with warning decals on the machine which specific hazard which caused injury. Hennepin County District granted Sponco’s motion for summary judgment, concluding that rule of law in Halvorson v. American Hoist and Derrick controlling. Appellant ap- from that peals entry order and the judgment thereon.. We reverse and remand for trial. accident, time of
At the Arnold Holm 58-year-old employee Naegele was a Ad- vertising, Approximately Inc.1 80% of his purposes tion. Sponco’s following summary summary judgment of facts is condensed mo-' stipulation agreed parties acknowledged that it was his practice electrician’s Holm working as an spent time was was to lines primary where his to avoid the electrical at least 15 assistant Naegele’s billboards light install fixtures Holm was also aware of the various feet. at night. illuminated On they so could be warning labels on the aerial ladder and an elec- 10,1973, Hylback, Laval September and, particular, truck of the 10 and 15 trician, assigned Holm were appellant clearance recommendations. feet *3 advertising to billboard for illu- prepare an a.m., 10:00 approximately Hylback At fixtures on the by mounting light mination the aerial and extended ladder such Holm advertising billboard was billboard. they could the to up climb ladder the Highway 12 between Tamarach located on top Using of the billboard. the aerial lad- Avenue and Brimhall Avenue on the west der, the two men maneuvered one 18-foot Lake, Long end of Minnesota. The bill- long up top fixture to the of the billboard approximately high; board was 25 feet to began place. bolt fixture in high within 16 feet of the billboard was a intentions were to ride the Holm’s ladder to voltage approximately electrical 31 feet line ground, controlling by using the re- ground. off the In to attach order platform, device pick mote control to fixtures, Hylback required Holm and were up second 18-foot fixture that would be purchased by to use an aerial ladder their complete job, and to required to return Sponco. from employer returning In top to the of the billboard. an automatic work- ladder had aerial ground, Holm maneuvered the aerial lad- top at the section of the platform er’s platform the automatic worker’s ladder and which per- control device der with a remote standing clockwise, in a on which he was ladder from the operation mitted so, northeasterly doing direction. While he remote control device con- platform. The powerline the electrical with his struck (4) toggle switches sisted of a series of four arm below the shoulder. right which, pressed, caused the ladder when sum- Sponco’smotion for opposition down, left, up, right. move or an affidavit of judgment, Holm filed mary ladder. the aerial with was familiar Holm witness, testifying that the aerial expert use of it on the instructions He had received unreasonably dan- ladder was defective this He had used employees. Naegele from such safety it lacked devices gerous because years, ladder aerial a similar or insulation, sensors, limiting other it more operated he had during which time warning devices which would proximity Moreover, Holm main- 2,000 than times. prox- appellant either warned enough with was familiar tained that he would have the electrical wires or imity of the ladder operate he could controls that pass- electrical current from prevented di- panel at the control looking without Sponco’s ground. ing through appellant 10,1973, September Prior to rection labels. it was not a rea- indicated that expert also the aer- difficulty positioning had Holm had to in- practice to fail engineering sonable moving the when Specifically, ial ladder. fore- where it was safety devices clude such the ladder spot, designated to a ladder be used ladder would that the aerial seeable power after the drifted “carried over” or near wires. electrical However, Holm had was discontinued. appeal this is whether The issue raised on so that the the ladder work with learned to the manufacturer of an aerial ladder problem. drifting was not unreasonably dangerous defective condition ladder the aerial Holm had worked user is to the if that liable user prior lines on near electrical on billboards defective condition is obvious. aerial ladder knew that the He occasions. and Der- Hoist v. American aware that In Halvorson Holm was not insulated. 48, 240 N.W.2d Minn. the ladder if he or rick he could be electrocuted adopted to have appeared line. this court with an electrical in contact came any manufacturer of a machine or rule which relieves latent-patent [T]he article, dangerous because of dangers other liability if
a manufacturer
functions,
patently
which it
way
the user.
are obvious to
of his
so,
duty
those who use it a
mere-
Dangers
owes to
Comment,
of Product
Obviousness
make it free from latent defects and
Apparent-
ly to
Recovery:
Minnesota
as a Bar
* * *
Doctrine,
dangers.
concealed
the Latent-Patent
ly Adopts
(1977). In Halvor-
L.Rev. 241
Wm. Mitchell
everything
does
nec-
If a manufacturer
son,
that a manufacturer
the court held
function
to make the machine
essary
injured plaintiff “any
owe an
does not
it is
purpose
for which
properly for
on its crane to
to install
any
if the machine is without
designed,
of electrocution
guard against
the risk
defect,
cre-
functioning
and if its
latent
when the record demonstrated
that is not known
peril
[the]
ates no
obvious;
known
all
risk was:
user,
manufacturer has
then the
involved;
(3) specifically
employees
law’s demands.
satisfied the
*4
* *
Minn,
57,
at
against
warned
307
Citing
471-72,
at 803-04.
Id.
95 N.E.2d
at
order. Co., In v. Goblirsch Western Land Roller
A
latent-patent
succinct statement of the
Scofield,2
rule
Campo
plaintiff
right
attempt-
is found in
v.
lost his
hand while
(1950):
ing
push
N.Y.
N.E.2d 802
wet corn down the intact chute
alleged.
plaintiff,
caught
of
latent
was not
2. The
whose hands became
istence
a
defect
machine,
Campo
onion-topping
the steel
of an
was overruled
that same court with
rollers
brought
suit
the machine’s manufactur-
in a
weeks after the Halvorson case
matter of
er,
alleging
that available
would
Micallef v. Miehle
was filed.
See
injuries.
prevented
ford Wood
Sears,
(1975);
gravity
happens,
Thibault v.
Roe
of harm if it
N.W.2d 360
Co.,
802,
843
buck
118 N.H.
395 A.2d
precaution
&
burden of the
which would be
Co.,
Lilly
Eli
175
(1978); Ferrigno v.
the harm.”
effective to avoid
551,
(1980);
Mical
N.J.Super.
420 A.2d
376,
Co.,
385-
Micallef v. Miehle
39 N.Y.2d
376,
Co.,
lef v. Miehle
39 N.Y.2d
348 N.E.2d
577-78,
86,
571,
348 N.E.2d
384 N.Y.S.2d
571,
(1976);
v.
Olson A.W.
N.Y.S.2d
115,
(1976) (citations omitted).
120-21
Ob-
(N.D. 1977);
Chesterton
viousness has not been eliminated as a fac-
Inc.,
Massey-Ferguson,
Palmer v.
3 Wash.
“Rather,
assessing liability,
tor in
however.
App.
3.
It is
to note that this article was
since both traditional
support
danger’ analysis
also cited in Halvorson in
of a balanc-
sis and the ‘unreasonable
ing
very
approved
liability
test
depend upon
similar to that
in Dor-
make
whether the utili-
sey, Micallef,
ty
and Auburn
product
question
Machine Works.
of the
or conduct in
out-
circumstances,
weighs,
light
of all of the
vein,
In this
one commentator has observed:
injury
taking
the risk of
precautions
and the burden of
argued
“It has been
that a rule of ‘strict
Comment,
prevent
to
it.”
1 Wm.
liability’
permits recovery
injuries
207,
Mitchell L.Rev.
arising
only
products
out of defects in
when
Co.,
Halvorson v.
give
American Hoist and Derrick
those defects
rise to unreasonable dan-
48, 56,
303,
(1976).
gers
307 Minn.
307
240 N.W.2d
is borrowed from
[cit-
test,
Wade,
ing
Although indicating approval
Liability
Strict Tort
of Manufac-
turers,
apt
apply
19 Sw.L.J.
That is an
Halvorson court declined to
it.
observa-
5].
Willmore,
Springrose
23,
v.
prod-
of strict
approving
the doctrine
(1971),
scope
v.
of that statute
Hankscraft N.W.2d
liability
ucts
in McCormack
322,
(1967), was
to
the as-
judicially expanded
Minn.
In this case working an aerial ladder in close proximity to Why then do we have to superimpose still powerline. electric He powerline case, knew the another on this a strict dangers there and he knew the in- theory that really copy a carbon developed, recovery 1. Since strict *8 was first con- to the exclusion of all others. Trial tributory negligence judges has been present allowed as a de- cannot under the state of the Comparative fense. And now our requires Fault Act being law be criticized for unable to submit a jury lump negligence a product and strict liability jury satisfactory case to a in a liability together compare as “fault” and to Keeton, Liability manner.” Meaning Product two. Defect, Mary’s of 5 St. L.J. (1973). apt: The comment of Dean Keeton is “Our supreme courts should arrive at a of usage.” we full matter, mon come circle back to practical So áction? As a negligence overtones, is based on liability something where the strict claim negligence with warn, as is this or design unsafe failure ironically, by adapting more con- even case, be- essentially there is no difference expectation sumer test of what is “unrea- liability negligence.2 strict tween reincorporated sonably dangerous” we have patent danger. the old tort rule of feature of strict It is said the distinctive “unreasonably of above-quoted definition not have to liability is that does taken dangerous” that the focus is on is negligence establish not the con- perhaps explains why jury the condition of the found no not, is how- duct of the manufacturer. This liability strict for an uninsulated crane ever, does quite say true. To operated by an being expe- without sensors does not mean prove negligence not have operator in of rienced a situation obvious some sense at the manufacturer is not in danger. fault, does not have that the great a liability performs service in Strict product that it. And it is not the prove duty of emphasizing the manufacturer’s sued, or mar- person who makes is but put a safe It continues product. care to out liability it. At the of a strict kets bottom perform that service. Professor Wade’s (certainly shared the notion theory is still seven-point utility-risk test for a balancing did some- manufacturer by jurors) that the opinion) in the court’s is (quoted standard therefore, and, pay. should thing wrong not, me, it seems to a definition of strict “wrongness” This of surfaces notion courts, liability only guide to enable what it attempts law to define when the line policy, as a matter of to draw a as to something is means a defect. A defect liability liability, whether that be character- “unreasonably product which makes the negligence as or strict or both.3 ized dangerous.” something And is unreasona- However, only question before us is “if bly dangerous product dangerous whether, presented, plaintiff on facts ordinary who uses it when used user try negligence case in or strict may his knowledge community with common I com- or would hold this case is product’s as to the characteristics and both. See, e.g., 3. Professor Wade does not recommend that the Knitz v. Minster Machine 2. given jury seven-point Some n. be test. com- Ohio St.2d 5 822 466 n. N.E.2d Keeton, (1982); urge one action. See F.2d mentators tort Brizendine v. Visador Wade, 849-50; law). supra, 1970) (applying Oregon supra; ski, cf. at Twer- As observes, Comparative design Wade “As in the From Defect to Cause to Professor cases, Rethinking Liability little Some Products there is the failure to warn [in case] Fault— Marq.L.Rev. (as Concepts, Eventu- distin difference for the manufacturer may guished ally, supplier) into the various coalesce one from the in an action theories Wade, tort, liability,” liability.” “product perhaps called fault for strict one Liability concepts negli- which will the traditional of On the Nature of Strict Tort for Prod use ucts, gence which have served so well and are under- 44 Miss.L.J. jurors, at same time standable to while something goes wrong If in the manufactur- incorporating bility strict some of the notions of lia- ing process, product part missing if a has a duty manufacturer’s of which stress the materials, improper malformed or made clearly care, supplier’s vicarious “breach war- have a in the “defect” situations, ranty” liability, and, in certain say prod- sense of term. But to common uct is operating plaintiffs proof relaxation of the burden accompanied not defective because to the manufacturer’s fault. instructions, it is without Thus, case, along warning with the standard devices or because it lacks the con- this instructions, might ception fect,” design, the court add of its is to use the word “de- consider, say, jury on “in a Pick- that the er’s cumstances, is to the manufactur- as Professor Wade would sense, special meaning among all facts and cir- of care wickian with a esoteric operator Words, course, that the of its Id. the likelihood own.” sense, dangers special may exposed to from the environ- need used be sometimes to be used, done, lay impact the serious- in which the but when this is their ment dangers posed, jurors kept and mechanical in mind. Witness ness should feasibility product. “proxi- jurors of additional had with the term and economic devices trouble for the mate cause.” *9 negligence only.
to be tried in I would
hold, facts, these where the in plaintiff-user
the use of the fully and where the claims of are limited to assertions that the
“defect”
manufacturer should have added devices to
its protect to warn and the user the obvious that strict lia-
bility nothing jurors offers confusion to
and that claim is to be jury.
submitted
KELLEY, (concurring part Justice in
dissenting part). join
I in Justice concurring Simonett’s dissenting opinion.
PETERSON, Justice (concurring part
and dissenting part). join concurring
I in the dissenting
opinion of Justice Simonett.
AMDAHL, (concurring Justice Chief
part dissenting part). join
I concurring dissenting in the
opinion of Justice Simonett. Minnesota, Respondent,
STATE of Wayne HOWARD, Appellant.
Donald
Nos. 81-735.
Supreme Court of Minnesota.
Aug. 4, 1982.
Rehearing Denied Oct.
