Joseph Roach, et al., Respondents, vs. County of Becker, Defendant, Thomas Alinder, et al., Appellants, and Gary Heitkamp Construction, Inc., et al., Appellants.
A19-2083
STATE OF MINNESOTA IN SUPREME COURT
July 21, 2021
Anderson, J. Took no part, Chutich, J.
Court of Appeals
Denis E. Grande, Zachary P. Armstrong, DeWitt LLP, Minneapolis, Minnesota, for respondents.
Steven F. Lamb, Vogel Law Firm, Fargo, North Dakota, for appellants Thomas Alinder, et al.
Michael J. Morley, Victoria A. Thoreson, Morley Law Firm, Grand Forks, North Dakota, for appellants Gary Heitkamp Construction, Inc., et al.
S Y L L A B U S
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Acceptance of a remittitur in lieu of a new trial does not bar an appeal that raises issues separate and distinct from the remittitur order. - A violation of a watershed district rule asserted as part of a tort claim but that is neither pleaded as, nor held to be, a basis for the claim does not suffice for an award of attorney fees under
Minn. Stat. § 103D.545, subd. 3 (2020).
Affirmed in part and reversed in part.
O P I N I O N
ANDERSON, Justice.
This dispute involves the violation of a Pelican River Watershed District rule during the construction of a home on lakeside property owned by appellants Thomas and Sandra Alinder, which resulted in damage to property owned by their neighbors, respondents Joseph and Jennifer Roach. Appellants Gary Heitkamp and
The Roaches brought nuisance, negligence per se, and trespass claims against the Alinders and Heitkamp. After years of litigation, a jury trial was held to address certain unresolved issues, primarily damages. The jury awarded the Roaches damages, including $300,000 in future damages. The Roaches moved for attorney fees, which the district court denied based on the conclusion that the watershed statute under which fees were sought,
The Roaches accepted the remittitur on future damages, then appealed several issues to the court of appeals, including the denial of attorney fees. The Alinders and Heitkamp argued that the Roaches’ acceptance of the remittitur barred the appeal. The court of appeals determined that the Roaches’ appeal was not barred by acceptance of the remittitur and held that the Roaches could seek attorney fees under
FACTS
The Roaches own property on the shoreline of Lake Melissa in Becker County. The Alinders own adjacent property, also on the shoreline of Lake Melissa, directly south of the Roaches’ property. In 2003, the Alinders applied to Becker County for a permit to construct a home on their property and hired Gary Heitkamp Construction, Inc. for the project. In 2004, the Roaches filed a zoning complaint with Becker County, asserting that fill was improperly added to the Alinders’ property during construction, raising the elevation of the property and increasing water runoff to neighboring properties. No permit to add fill was obtained, in violation of Becker County zoning ordinances and Pelican River Watershed District rules.
In 2005, during ongoing zoning proceedings, the Roaches began litigation against Becker County, the Alinders, and Heitkamp. This litigation has a lengthy procedural history that includes multiple appeals to the court of appeals and a significant volume of motion practice.1 We include only those facts that are directly relevant to the issues before us. In the litigation, the Roaches sought declaratory relief, petitioning for a writ of mandamus directing Becker County to enforce the zoning ordinances by compelling the Alinders to remove the added fill; they also sought damages from Becker County for a claim of inverse condemnation. The Roaches brought nuisance, negligence per se, and trespass claims against the Alinders and Heitkamp.
In 2015, the district court bifurcated the matter and held a bench trial on the declaratory relief claim. The court found that the Alinders failed to obtain the required permits from Becker County and from the Pelican River Watershed District for the placement and movement of fill on their property during the construction of the
In 2017, the district court partially granted a motion for summary judgment brought by the Roaches. The court held that the Roaches had sufficiently proven the elements of nuisance and negligence per se against the Alinders.
In 2019, the remaining issues, including damages, were addressed at a jury trial—the events that followed paved the way for this appeal. The jury awarded the Roaches $564,800 in damages, including $300,000 for future damages. Following the trial, the Roaches moved for attorney fees under a statute that permits fees to be awarded in a dispute that arises from or is related to a rule made by a watershed district; the Roaches also moved for costs and disbursements and preverdict interest. In separate motions, the Alinders and Heitkamp challenged the jury‘s future damages award and requested a remittitur of those damages or, in the alternative, a new trial. The Roaches moved for judgment as a matter of law as to their right to preverdict and postverdict interest.
In an order addressing the various posttrial motions, the district court denied the Roaches’ motion for attorney fees on the basis that the statute under which the Roaches sought fees,
The district court also conditionally granted the motions for a new trial brought by Heitkamp and the Alinders on the ground that the Roaches failed to prove future damages to a reasonable certainty. The court ordered a “new trial on the issue of damages” unless the Roaches “accept[ed] a remittitur of the future damages award from $300,000 to $0.00 and of costs and disbursements from $93,213.08 to $74,574.20.” The court calculated the final award as $514,885.77, not including postjudgment interest.2 If the Roaches did not accept the remittitur, the court would order a new trial “on all issues” because the court could not determine whether the
The Roaches petitioned the court of appeals for discretionary review of the district court‘s order conditionally granting a new trial unless the remittitur was accepted, which the court of appeals denied. Roach v. County of Becker, No. A19-1445, Order at 4 (Minn. App. filed Oct. 8, 2019). The Roaches ultimately accepted the remittitur, and the district court filed an amended and final order for judgment. The order specified that the final award for the Roaches was $514,885.77, which included costs and disbursements as well as preverdict interest.3 The order also repeated that no attorney fees were awarded to any party.
The Roaches appealed from the final judgment, challenging the district court‘s rulings on attorney fees, preverdict interest, and several other issues not relevant to the matters before us. The court of appeals affirmed in part and reversed in part. Roach v. County of Becker, No. A19-2083, 2020 WL 4281003, at *1 (Minn. App. July 27, 2020). The court of appeals first concluded that the appeal was proper despite acceptance of the remittitur because the record contained “no evidence that the Roaches intentionally relinquished any known right to appeal” and “the [district court‘s] order did not specify that acceptance of the remittitur” would operate as a waiver of their right to appeal other issues. Id. at *3. The court of appeals next held that the district court erred by limiting the time period for accrual of the Roaches’ preverdict interest because there was no basis in Minnesota law to support a reduction in the accrual timeframe. Id. at *4. Finally, as is relevant here, the court of appeals held that
Heitkamp and the Alinders subsequently sought review in separate petitions. We granted review of two issues.
ANALYSIS
The first issue presented by this appeal is whether the Roaches could appeal after accepting the district court‘s remittitur in lieu of a new trial. The second issue presented is whether the court of appeals correctly concluded that
I.
We first address whether the Roaches could pursue an appeal after accepting the remittitur that reduced the future damages award to zero. The appeal challenged numerous orders of the district court, including the reduction in the period of accrual for preverdict interest and the denial of attorney fees.
Remittitur is relief ordered by a district court after determining that a jury award was excessive. See Daly v. McFarland, 812 N.W.2d 113, 127 (Minn. 2012). The objective of remittitur ” ‘is to avoid
We have acknowledged that, although a plaintiff cannot challenge a reduced award on appeal once it has been accepted in district court, an exception to the general rule exists. See Jangula, 170 N.W.2d at 588. A plaintiff may challenge the propriety of a remittitur on a proper cross-appeal when the defendant initiates the appeal. Id. at 593-94. Therefore, accepting a remittitur binds the plaintiff to that relief unless the defendant first appeals and the plaintiff cross-appeals to challenge the reduced damages. Thus, because the Alinders and Heitkamp did not initiate an appeal here, the Jangula rule does not apply to the Roaches’ appeal.
We have not previously considered whether acceptance of a remittitur prevents a plaintiff from making a direct appeal from a final judgment with respect to issues unrelated to the remittitur. “This court has the power to recognize and abolish common law doctrines.” Larson v. Wasemiller, 738 N.W.2d 300, 303 (Minn. 2007).
A.
The Alinders and Heitkamp urge us to hold that the common law rule—acceptance of a remittitur precludes a plaintiff from challenging the reduced award on appeal—bars a plaintiff from appealing all issues following acceptance of the remittitur unless the defendant first appeals, which would trigger the Jangula exception. They also argue that this broad rule barring all appeals by a plaintiff after acceptance of a remittitur is necessary to foster judicial economy and finality in litigation.
The Roaches contend that they waived their right to appeal only the reduction of future damages but not their right to appeal other issues. They encourage us to adopt what is known as the separate and distinct rule, which allows appeals on issues that are separate and distinct from the subject of the remittitur. The Roaches claim that the issues of preverdict interest and attorney fees are separate and distinct from the subject of the remittitur and, therefore, are appealable despite acceptance of the remittitur. They argue that the separate and distinct rule promotes judicial economy by resolving issues on appeal that would not be addressed by a second trial, even if a remittitur is rejected.
The Alinders and Heitkamp counter, arguing that, even if we adopt the separate and distinct rule, the appeal here was still not proper because the attorney fees and preverdict interest determinations were bound up in the damages award and thus not separate and distinct from the subject of the remittitur. In other words, they contend that accepting the remittitur bound the Roaches to the total amount awarded in the district court‘s order and that the attorney fees and preverdict interest determinations cannot be severed from that total because the district court specifically
“We often look to case law from other states for guidance when our own jurisprudence is lacking,” and we also look to federal law when it is helpful. Gordon v. Microsoft Corp., 645 N.W.2d 393, 402 n.9 (Minn. 2002). A number of courts, both state and federal, have applied the separate and distinct rule.4 Further, we know of no court that considered the separate and distinct rule and rejected that rule entirely.5 Of the jurisdictions that have considered the separate and distinct rule, all have determined that there are some matters that a plaintiff can appeal directly despite acceptance of a remittitur. The difference among courts is how the category of appealable issues is defined.6
For the reasons that follow, we adopt the separate and distinct rule. We find two decisions particularly instructive in our decision to do so. In Templeton Feed & Grain v. Ralston Purina Co., the California Supreme Court held that the plaintiff‘s consent to a remittitur did not preclude an appeal from the judgment on a severable issue. 446 P.2d 152, 156-57 (Cal. 1968) (in bank). The plaintiff challenged the trial court‘s refusal to instruct the jury on exemplary damages. Id. at 153. The court determined that it could not assume that the plaintiff, “in agreeing to the remittitur, also acquiesced in the trial court‘s separate and distinct denial of [the] plaintiff‘s right to recover punitive damages.” Id. at 158. The court concluded that correction of the error urged by the plaintiff—the failure to instruct on exemplary damages—“would not itself necessitate the reopening of the entire judgment” and could, therefore, be appealed by the plaintiff despite acceptance of the remittitur. Id. at 157.
The adoption of the separate and distinct rule by the Connecticut Supreme Court in Cohen v. Yale-New Haven Hospital also provides useful guidance. 800 A.2d 499, 502-06 (Conn. 2002). In Cohen, the plaintiff challenged on appeal the trial court‘s decision not to charge the jury on a particular causation question as well as the court‘s decision to set aside the verdict on one specific issue. Id. at 502. After the trial, the court ordered a remittitur of the jury‘s damages award, which the
In addition to these decisions, we also consider the overall objective of remittitur, which is to “avoid the delay and expense of an appeal or a new trial” when the district court determines that a jury‘s award is excessive. Jangula, 170 N.W.2d at 593 (quoting Plesko, 120 N.W.2d at 135). In other words, remittitur allows the district court to correct jury error. See Podgorski, 179 N.W. at 680 (explaining that remittitur is not an encroachment on the province of the jury but merely corrects an error).
Considering the purpose of remittitur and the notion that it serves merely as error correction, it makes sense that accepting a remittitur should necessarily bar appeals only on damages awarded by the jury. Allowing remittitur to bind plaintiffs to decisions completely separate from a jury‘s award expands remittitur beyond its intended objective—a necessary correction to a mistaken jury decision—and insulates erroneous district court decisions from any review on appeal. Additionally, we find persuasive the Roaches’ argument that the separate and distinct rule fosters judicial economy because, without it, the Roaches would have to reject the remittitur and undergo a new trial on damages before they could appeal the district court‘s posttrial rulings that would be unaffected by that second trial.7
Because the separate and distinct rule allows an appeal on issues that are unrelated to a remittitur, it is consistent with sound appellate practice and promotes judicial economy. We therefore adopt that rule.
B.
The Alinders and Heitkamp contend that, even under the separate and distinct rule, the issues of attorney fees and preverdict interest are not separate and distinct appealable issues in this case. We disagree.
Although jurisdictions that have adopted this rule do not have a uniform definition of what issues are “separate and distinct,”8 we conclude that the issues of attorney fees and preverdict interest are
Here, the issues of attorney fees and preverdict interest were addressed by the district court in its order on posttrial motions and were never considered by the jury. The district court made legal determinations based solely on its understanding of the law. Put another way, the jury never considered whether
Therefore, we conclude that, at the very least, the legal issues determined by the district court are separate and distinct issues from the remittitur of the jury‘s future damages award. Thus, the Roaches’ appeal of the district court‘s rulings on attorney fees and preverdict interest is proper despite their acceptance of the remittitur, and we affirm the court of appeals’ decision on this issue.
II.
We turn next to whether the court of appeals erred by holding that attorney fees were authorized in this case under
Statutory interpretation is a question of law, which we review de novo. Am. Tower, L.P. v. City of Grant, 636 N.W.2d 309, 312 (Minn. 2001).10
Under Minnesota‘s common law, attorney fees are not allowed in ordinary civil actions. In re Silicone Implant Ins. Coverage Litig., 667 N.W.2d 405, 422 (Minn. 2003). Rather, attorney fees are allowed only when permitted by a specific
The Alinders and Heitkamp argue that the Roaches may not seek attorney fees under
The Roaches contend that the court of appeals properly concluded that
A.
The question before us is, in the context of both the enforcement statute and the common law principles surrounding attorney fees, what it means for an action to arise from or relate to a violation of a watershed district rule under
The purpose of statutory interpretation is to ascertain the intention of the Legislature.
We have previously interpreted the phrase “relating to” in 500 LLC v. City of Minneapolis, 837 N.W.2d 287, 291 (Minn. 2013). We concluded that, as used in the statute at issue in that case, the phrase was unambiguous and meant to have a “connection, association, or logical relationship.” Id. (citing Morales v. Trans World Airlines, Inc., 504 U.S. 374, 383 (1992)). The Roaches rely on this previous interpretation to argue that
To determine whether subdivision 3 unambiguously expresses a clear intent to abrogate the common law rule on attorney fees or necessarily implies such abrogation, we look to
We conclude that, because subdivision 3 is susceptible to more than one reasonable interpretation, it is ambiguous. The first reasonable interpretation is the one urged by the Roaches: that attorney fees are authorized in any civil action with any connection, association, or logical relationship to a watershed district rule. A second reasonable interpretation is that the attorney fees authorized by subdivision 3 apply only to those types of civil enforcement actions outlined in the rest of
Having determined that the statute is ambiguous, we turn to the canons of construction to understand the intent of the Legislature behind the attorney fees provision.
We start by considering “the consequences of a particular interpretation.” See
We also consider “the contemporaneous legislative history” of the amendment that added subdivision 3 to
As far as our interpretation of
Finally, when interpreting an ambiguous statute, we also construe that statute as a whole.
Given these considerations, we conclude that the second interpretation of subdivision 3—that subdivision 3 applies only to those types of civil actions seeking to enforce or challenge watershed district actions—is the more reasonable interpretation. To conclude otherwise would be contrary to our longstanding common law rule and our requirement that the intent of the Legislature to abrogate a common law rule must be clear and express or necessarily implied.
The Legislature is customarily clear about authorizing awards of attorney fees to successful litigants,13 and
B.
Having determined that subdivision 3 does not authorize attorney fees in any civil action with any connection to a watershed district rule, but, rather, that attorney fees incurred only in civil actions seeking to enforce or challenge watershed district actions are authorized, we consider whether the action brought by the Roaches comes within the scope of the attorney fees provision.
The Roaches did not challenge a watershed district action. Therefore, the attorney fees provision applies only if they sought to enforce a watershed district rule, order, stipulation agreement, or permit in their litigation against the Alinders and Heitkamp. Subdivision 2 of
In their complaint, the Roaches pleaded a violation of Pelican River Watershed District Rule 4.10, which requires permits for any “alterations to land, impervious surface, or vegetation in Shore or Bluff Impact Zones, or on steep slopes in a Shoreland Zone.” Pelican River Watershed District, Rule 4.10 (2003).14 The Roaches did not assert that the failure to obtain the necessary permits before adding fill to the Alinders’ property was a basis for their negligence per se cause of action or any of the other causes of action asserted against the Alinders and Heitkamp.
In their motion for partial summary judgment, the Roaches again noted the violation of Pelican River Watershed District Rule 4.10. The argument that they were entitled to summary judgment, however, focused entirely on the violation of the Becker County zoning ordinances. In
When the district court decided the Roaches’ motion,15 it concluded that the Roaches had sufficiently proven their negligence per se claim against the Alinders and cited violations of Becker County zoning ordinances as the basis for this determination.16 The watershed district rule was not mentioned anywhere in the summary judgment order. After the Roaches filed their posttrial motion for attorney fees under
It is clear from their own pleadings and motions, as well as from the rulings of the district court, that the Roaches’ objective was to force Becker County to enforce its zoning ordinance and to obtain compensation from the Alinders and Heitkamp for the alleged tort violations. None of those tort actions were based on violation of a watershed district rule. All of the Roaches’ claims centered on violations of Becker County zoning ordinances.
Therefore, this dispute did not “aris[e] from or relate[] to” a watershed district rule under subdivision 3.
It is also relevant that the Roaches could have brought the same causes of action against the Alinders and Heitkamp absent the watershed district rules entirely. Although representatives from the Pelican River Watershed District inspected the property as part of the court-ordered restoration process, none of the Roaches’ claims relied on the existence of the watershed rule. Further, the outcome on the merits of the Roaches’ claims would not change if Rule 4.10 did not exist.
Although the district court commented that violation of the watershed rule “clarified” that the Alinders and Heitkamp were negligent per se, “clarify” is not the standard provided by the Legislature in subdivision 3. In light of our discussion above, we conclude that “arising from or related to” requires a watershed district rule to do more than clarify what is otherwise established by regulations entirely separate from the watershed district rule. We decline to decide whether it is ever appropriate to award attorney fees to a private party litigant under
We conclude that this action does not arise from or relate to a watershed district rule as required by
CONCLUSION
For the foregoing reasons, we affirm the decision of the court of appeals’ holding that the Roaches’ appeal on attorney fees and preverdict interest was not barred by their acceptance of the remittitur and reverse
Affirmed in part and reversed in part.
CHUTICH, J., took no part in the consideration or decision of this case.
Notes
- Damage to Lake Lot ($10,000 * 80%): $8,000.00
- Damage to Cabin ($200,000 * 80%): $160,000.00
- Nuisance Damages: ($50,000 * 80%): $40,000.00
- Trespass Damages (against Heitkamp): $4,800.00
- Costs and Disbursements: $74,574.20
- Preverdict Interest: $227,511.57
