Ge Lee v. McWillie Hunt

Two months after judgment was entered for appellant, respondent moved to amend the judgment by deducting collateral source benefits brought under Minn. Stat. § 65B.51, subd. 1 (2000), of the Minnesota No-Fault Automobile Insurance Act, which contains no deadline for filing such a motion. Appellant objected to the timeliness of the motion, arguing that the ten-day deadline of the collateral source statute, Minn. Stat. § 548.36, subd. 2 (2000), applies to motions for deductions brought pursuant to the no‑fault act and that, therefore, the motion to amend the judgment was untimely under Minn. R. Civ. P. 52.02 and 59.03. The district court held that the ten-day deadline did not apply to a motion brought pursuant to the no-fault act and granted the motion to deduct collateral source benefits. Because we conclude that the ten-day deadline set forth in Minn. Stat. § 548.36, subd. 2, applies in this case, we reverse and remand.

Facts

In the summer of 1996, appellant Ge Lee and respondent McWillie Hunt were involved in a one-vehicle accident in which Lee sustained injuries. Lee's no-fault insurer paid $15,669.78 in medical expenses before the case was set for trial. Hunt conceded that her negligence was the cause of the accident, and trial was limited to the issue of damages. The jury, by special verdict, awarded Lee total damages of $32,123, $17,113 of which represented past medical expenses.

After the jury had rendered its verdict, Lee's counsel sent a letter to Hunt's counsel stating that Lee would be willing to stipulate to reducing the award of past medical expenses by $15,669.78, in exchange for Hunt stipulating to a credit for the cost of Lee's PIP benefits. Hunt's counsel did not respond to this letter.

On August 2, 2001, almost two months after entry of the judgment, Hunt moved to amend the judgment, pursuant to Minn. Stat. § 65B.51, subd. 1 (2000), of the Minnesota No-Fault Automobile Insurance Act (no‑fault act), by deducting no-fault collateral source benefits. Lee opposed the motion, arguing that Minn. Stat. § 548.36 (2000) (collateral source statute) imposed a ten-day deadline from date of entry of judgment on filing a motion to determine collateral source benefits.

The district court granted Hunt's motion to deduct $15,669.78 in collateral source benefits and this appeal resulted.

Issues

I. Does the collateral source statute's requirement that motions for a determination of a collateral source be filed within ten days of entry of judgment apply to motions brought under the no-fault act?

II. Does Hunt's failure to bring a motion for amended judgment within the time period required by Minn. R. Civ. P. 52.02 and 59.03 render the motion untimely?

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In this case, we must determine whether the two statutes at issue are irreconcilable. The collateral source statute provides in part:

In a civil action, whether based on contract or tort, when liability is admitted or is determined by the trier of fact, and when damages include an award to compensate the plaintiff for losses available to the date of the verdict by collateral sources, a party may file a motion within ten days of the date of entry of the verdict[1] requesting determination of collateral sources.

Minn. Stat. § 548.36, subd. 2 (2000) (emphasis added). Minn. Stat. § 548.36, subd. 3(a) (2000), provides in relevant part, "The court shall reduce the award by the amounts determined under subdivision 2, * * * ." In the no-fault act, the statute provides:

With respect to a cause of action in negligence accruing as a result of injury arising out of the operation, ownership, maintenance or use of a motor vehicle with respect to which security has been provided as required by sections 65B.41 to 65B.71, the court shall deduct from any recovery the value of basic or optional economic loss benefits paid or payable, or which would be payable but for any applicable deductible.

Minn. Stat. § 65B.51, subd. 1 (2000) (emphasis added). Section 65B.51, subdivision 1, contains no time limit within which the motion to deduct benefits must be brought. Section 548.36, in contrast, mandates that the motion be brought within ten days of entry of the verdict.

Does the ten-day limitation in the collateral source statute apply to motions brought pursuant to the no-fault act? The district court in effect said "no," declaring the two statutes irreconcilable and applying doctrines of statutory interpretation to hold that Minn. Stat. § 65B.51 predominates. The district court concluded that although the collateral source statute was enacted in 1986, 12 years after the no-fault act was originally passed, the 1990 amendment changing a phrase of the no-fault act from "there shall be deducted" to "the court shall deduct" rendered the no-fault act the more recent, and, therefore, the prevailing of the two statutes. See Minn. Stat. § 645.26, subd. 4 (2000) (stating that when statutes are irreconcilable, "the law latest in date of final enactment shall prevail"). The district court also concluded that because the no-fault act applies more specifically to no-fault benefits and the collateral source statute applies generally to all collateral source benefits, the no-fault act controls. See Minn. Stat. § 645.26, subd. 1 (2000) (noting that when statutes are irreconcilable, the more particular takes precedence over the more general); see also Wertish v. Salvhus, 558 N.W.2d 258, 258 (Minn. 1997) (noting that the no-fault act is the more specific of the two statutes).

Mindful of the authority of the doctrines of statutory interpretation relied on by the district court, we are also aware of the caution that statutes should be construed, if possible, so that effect can be given to both. We conclude that it is possible to reconcile Minn. Stat. § 65B.51, subd. 1, and Minn. Stat. § 548.36 (2000), so as to give effect to both.

Viewing the collateral source statute as a whole convinces us that, by its terms, it is a procedural statute intended to supplement the substantive provisions of the no-fault act. "Collateral sources" are defined as including

payments related to the injury or disability in question made to the plaintiff * * * by or pursuant to * * * automobile accident insurance or liability insurance that provides health benefits or income disability coverage.

Minn. Stat. § 548.36, subd. 1(2). No-fault benefits fall within the category of automobile accident insurance, and, therefore, by definition, the collateral source statute applies to the no-fault benefits. See Minn. Stat. § 65B.49, subd. 1 (2000) (mandating that all automobile insurance policies carry no-fault coverage); Wertish v. Salvhus, 555 N.W.2d 26, 28 (Minn. App. 1997) (noting that collateral source statute specifically includes automobile accident insurance as a collateral source), rev'd on other grounds mem., 558 N.W.2d 258 (Minn. 1997).

We conclude that any reliance on the 1990 amendment to the no-fault act to deem it more recently passed is unpersuasive; there is no indication that the legislature intended to abrogate the meaning of the collateral source statute's ten-day limitation merely by changing the wording of one phrase of the no-fault act (there shall be deducted) to another (the court shall deduct). Also, as noted above, while the no-fault act may be more specific with regard to substantive law, the collateral source statute is undoubtedly the more specific with regard to procedural law. Further, any attempt to interpret the "may file a motion" language of the collateral source statute to be permissive would, in fact, render the ten-day limitation meaningless. Minn. Stat. §§ 645.16 (mandating that "[e]very law shall be construed, if possible, to give effect to all its provisions"), .17(2) (2000) (mandating that courts must presume that the legislature intended to give effect to every provision of the statute).

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Reversed and remanded

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