Opinion ID: 364697
Heading Depth: 1
Heading Rank: 3

Heading: Contribution and Indemnification Under Minnesota Law

Text: 25 Counts II and III of Professional's complaint involve pendent state claims. Count II alleged that National violated Minnesota's antitrust statutes, Minn.Stat.Ann. §§ 325.8014, 325.8015, and Count III alleged tortious interference with its business relationships. 26 Minnesota is one of a minority of states where the common law has developed to allow contribution among joint tortfeasors under certain circumstances. Under Minnesota law, National will be entitled to contribution if it can show on remand that it was not guilty of conscious wrongdoing, even if there has been a finding that a violation of the Minnesota antitrust statutes has been committed. Cf. Skaja v. Andrews Hotel Co., 281 Minn. 417, 161 N.W.2d 657 (1968); Farmers Ins. Exch. v. Village of Hewitt, 274 Minn. 246, 143 N.W.2d 230, 235-39 (1966); Hardware Mut. Cas. Co. v. Danberry, 234 Minn. 391, 48 N.W.2d 567, 570-72 (1951) (application of contribution in personal injury cases). See also W. Prosser, Law of Torts § 50, at 306-08 & n. 68 (4th ed. 1971). 27 National also argues that it has stated a claim for indemnification under Count III, tortious interference with business relationships. In Minnesota, the leading case on indemnification is Hendrickson v. Minnesota Power & Light Co., 258 Minn. 368, 104 N.W.2d 843 (1960). 10 In Hendrickson the court listed several situations in which indemnity is appropriate, two of which are relevant here: 28 (2) Where the one seeking indemnity has incurred liability by action at the direction, in the interest of, and in reliance upon the one sought to be charged. 29 (3) Where the one seeking indemnity has incurred liability because of a breach of duty owed to him by the one sought to be charged. 30 Id. at 848 (footnotes omitted). 31 With regard to Count III, National, in its third-party complaint, alleged that if it is found liable it will be by action at the direction, in the interest of, and in reliance upon La Maur; that La Maur had a duty to reveal to National the nature and extent of the business relationship between La Maur and Professional that might be interfered with by granting National an exclusive dealership; and that La Maur breached that duty. Since National may demonstrate that it falls within one of the exceptions to the no indemnification rule listed in Hendrickson v. Minnesota Power & Light Co., supra, the district court acted prematurely in dismissing National's claim under Minnesota law for indemnification under Count III. 32 The issue, whether if sufficient evidence is presented by Professional to hold National liable under Count III, such evidence will also be sufficient to preclude National from receiving indemnification from La Maur under Minnesota law, is not free from doubt. Since the case must be remanded on other grounds, we believe that the best course is to have this determination made in the first instance by the district court after more complete factual development.