Court Opinion

ID: 9689201
Source: CourtListenerOpinion
Date Created: 2023-08-24 18:24:34.337819+00
Date Added: 2024-06-11T18:18:46.056420
License: Public Domain

FORSBERG, Judge
(dissenting).
I respectfully dissent. A claim for contribution or indemnity does not accrue until the one entitled to contribution or indemnity is damaged by paying more than their fair share or by paying for the liability of another. Dixon v. Northwestern National Bank of Minneapolis, 275 F.Supp. 582, 584 (D.Minn.1967). While the usual application is in tort law, the rule also applies to contract actions. Aetna Casualty & Surety Co. v. Bros, 226 Minn. 466, 33 N.W.2d 46 (1948). Midway has not incurred any damage. Requiring Midway to bring suit against First Robbinsdale within six years of payment on the check requires Midway to bring suit before it has suffered a loss. The majority decision requires a bank (in order to preserve its indemnity claim) to bring a declaratory judgment action each time an affidavit of forgery is submitted to the bank even though, ultimately, a suit is not brought claiming forgery, or in fact the document was later proven to be not forged. This is an intolerable burden on banks. E.S.P. has not obtained judgment against Midway and no payment has been made to E.S.P. The statute of limitations on indemnity should not run until a loss is established.