Court Opinion

ID: 9690174
Source: CourtListenerOpinion
Date Created: 2023-08-24 18:55:54.409858+00
Date Added: 2024-06-11T18:18:53.953558
License: Public Domain

PETERSON, Judge
(dissenting).
I respectfully dissent. The parties stipulated that the problems with appellants’ dairy herd began after respondent installed an electric pole and transformer on appellant’s farm in 1980 and ceased soon after respondent installed a neutral isolator at the pole on January 27, 1984. Appellants argue the electric service itself was defective, not the equipment. However, an alteration of the equipment stopped the problems. Under these facts, the injury suffered by appellants arose out of the condition of the electric pole and transformer before installation of the neutral isolator.
The majority concludes that, because respondent maintains control of the pole and transformer installed on appellant’s property, the pole and transformer do not constitute an improvement to real property under Minn.Stat. § 541.051 (1988). There is nothing in section 541.051 that suggests its application is limited to suits against those who install or create an improvement to real property and surrender control of it.
The majority correctly observes that Minn.Stat. § 541.051 does not protect an installer/owner of an improvement to real property from its own ongoing negligence. Minn.Stat. § 541.051, subd. 1(c) specifically provides:
Nothing in this section shall apply to actions for damages resulting from negligence in the maintenance, operation or inspection of the real property improvement against the owner or other person in possession.
However, the injury here was not caused by respondent’s ongoing negligence. It was caused by the failure to install the neutral isolator when the pole and transformer were installed. Until the neutral isolator was installed the condition of the pole and transformer was defective and unsafe.
The plain meaning of the term “improvements to real property” adopted by the Minnesota Supreme Court clearly applies to the pole and transformer installed by respondent. An improvement is:
a permanent addition to or betterment of real property that enhances its capital value and that involves the expenditure of labor or money and is designed to make the property more useful or valuable as distinguished from ordinary repairs.
Pacific Indem. Co. v. Thompson-Yaeger, Inc., 260 N.W.2d 548, 554 (Minn.1977) (quoting Kloster-Madsen, Inc. v. Tafis, Inc., 303 Minn. 59, 63, 226 N.W.2d 603, 607 (1975)).
The pole and transformer are a permanent addition to appellants’ property. There is no expectation that they will be removed from the property at any time in the future. The pole and transformer enhance the capital value of appellants’ farm. With the increased electrical service made possible by the pole and transformer, appellants are able to do things on their farm that were not possible before the pole and transformer were installed. The sole reason for installation of the pole and transformer was to enable appellants to expand their farming operation. Though physically separate, the pole and transformer are an integral part of the new facilities added to appellants’ farm in 1980. The increased production capabilities of these facilities increase the value of the real estate. Installation of the pole and transformer involved the expenditure of labor and money. Finally, as already stated, the sole purpose for installing the pole and transformer was to enable appellants to expand their farming operation. The pole and transformer installation was specifically designed to accomplish this purpose. The pole and transformer did not take the place of existing electrical service; they expanded existing service.
There is nothing in Minn.Stat. § 541.051 or the supreme court’s interpretation of section 541.051 that suggests that the ap*522plication of the term “improvement to real property” to any physical structure should depend upon the ownership or control of the physical structure.
Because the injury suffered by appellants arose out of the defective condition of an improvement to real property, the trial court correctly found that appellants’ cause of action was barred by the two year statute of limitations under Minn.Stat. § 541.051.