HomeMy WebLinkAboutMemo in Support for Dismissal
;;.
STATE OF MINNESOTA
DISTRICT COURT
COUNTY OF SCOTT
FIRST JUDICIAL DISTRICT
Priorview Limited Partnership,
a/k/a Priorview Limited, a
Minnesota Limited Partnership,
Case No. 93-08239
Plaintiff,
DEFENDANT
CITY OF PRIOR LAKE'S
MEMORANDUM IN SUPPORT OF
ITS MOTION FOR DISMISSAL
v.
Independent School District No. 719
of Scott County and the
City of Prior Lake,
Defendants.
Defendant city of Prior Lake submits this Memorandum in
Support of its Motion for Dismissal of the claims against it
brought by Plaintiff Priorview Limited Partnershi~ ("Plaintiff").
Plaintiff has no cause of action against the city.
Even if
Plaintiff had a cause of action, any claim would be barred by the
statute of limitations and the doctrine of discretionary immunity.
I .
STATEMENT OF FACTS
Plaintiff is a limited partnership engaged in the business of
land development. Its general partners are Thomas Steffens and Joe
Knoblauch (Anderson Aff idavi t, par. 2).
Steffens is also an
attorney with the law firm of Steffens / Wilkerson and Lang.
Plaintiff acquired certain property within the city of Prior
Lake for the purpose of constructing and developing town houses
Lid., par. 2).
The property, however, was not sui table for
development because it possessed no access to any public roads
(~., par. 5). The Five Hawks Elementary School owned by defendant
Independent School District No. 719 (the II School District ") lay
between plaintiff's property and State Highway 13. The school
district had built and maintained a gravel driveway from Highway 13
to the school building. A portion of this driveway ran next to
plaintiff's property. The length of this gravel driveway was
approximately a quarter of a mile (Id.).
In 1983, plaintiff presented the city with a plat to develop
a portion of its land entitled Priorview First Addition (.lQ".,
Exhibit 11). Plaintiff's application for plat approval was
governed by the city's subdivision ordinance enacted in 1974 (Id,
Exhibit 1). Plaintiff also applied for a Planned Unit Development
(IIPUD") which was governed by Section 6.11 of the city's zoning
ordinance (Id. Exhibit 2). Pursuant to the authority provided by
Minn. Stat. 462.358, subd. 2a and 2b, the subdivision ordinance
required plaintiff to provide suitable streets, water and sewer
systems and storm drainage. Subdivision Ordinance Ch. 5 and 6
(Anderson Affidavit, Exhibit 1). Obviously, the city could not
approve plaintiff's plat without public access to the development
(Id., par. 11). In order to provide suitable ingress and egress,
plaintiff entered into negotiations with the school district in
order to obtain the use of its driveway. The school district was
willing to grant an easement to the city for its driveway and share
the costs of paving this new street, provided that the school
district was given credit for the expenses that it had incurred in
constructing the driveway in the first place. The school
- 2 -
district's position was set forth in three letters written
S ep t emb e r 1 5 , 1 982 to June 2 9 , 1 98 3 ( I d., Exh ib its 3, 4 & 5).
School district officials signed a document on September 16, 1983
setting out the terms for the improvement and dedication of a new
street to be called Five Hawks Avenue (Id., Exhibit 8).
The Prior Lake City Council approved the plat and PUD for the
Priorview First Addition on August 8, 1983 on condition that a
Developer's Agreement be executed and that "Priorview will provide
a document or an agreement for providing the public easement with
the endorsement of the Building Committee of the School District
719 prior to the issuance of permits" (Id. Exhibit 7). Plaintiff
and the city executed a Developer's Agreement on September 19,
1983. This Developer's Agreement required plaintiff to improve the
driveway into a hard surface road to be named Five Hawks Avenue
which would provide ingress and egress to Priorview First Addition
(Id., Exhibit 10). Plaintiff's Complaint at paragraph 33 states
that "Defendants stated and represented to Priorview that the
existing road and its subgrade had been adequately maintained and
was in full compliance with city standards and regulations for
unpaved roads. II The city made no such representation and does not
have "city standards and regulations for unpaved roads" (Id., par.
12). Plaintiff hired an engineer and contracted with a private
company to' make the improvements to the driveway required by the
Developer's Agreement (Id., par. 14). That portion of Five Hawks
Avenue which provides public access to Priorview First Addition was
completed by the end of 1983 (Id.). The street was accepted by the
- 3 -
City Engineer in 1983 and has been maintained by the city ever
since Ll.d.).
In 1985, plaintiff sought similar approval for Priorview
Second Addition. The plat approved by the city council contained
an extension of Five Hawks Avenue which was within the platted
property (Id., Exhibit 14). Plaintiff executed a second
Developer's Agreement which required it to provide streets and
other utilities (~., Exhibit 13). The improvements contemplated
by the Developer's Agreement were completed during 1985. The City
Engineer accepted the dedicated streets in the Second Addition in
1985, and they have been maintained by the city ever since (Id.,
para. 19). Plans for a further subdivision and extension of Five
Hawks Avenue has not occurred. Five Hawks Avenue is currently a
deadend street.
During the process outlined above, the city was well aware
that plaintiff and the school district had agreed to share the
costs of construction of Five Hawks Avenue. City officials did not
take part in the negotiations between plaintiff and the school
district. The city's only interest was to ensure that the
developer provided adequate streets and other utilities (Id., par.
11 ) .
Count I of plaintiff's Complaint alleges "breach of contract. II
The allegations contained in the Complaint refer to an agreement
that plaintiff had with the school district which is attached as
Exhibit A to the Complaint. None of the allegations relating to
Count I refer to the city of Prior Lake (Complaint, paras. 14-27).
- 4 -
Nevertheless, plaintiff's prayer for relief demands judgment on
Count I against the city.
In Count II, plaintiff claims that the city has been unjustly
enriched by virtue of the acquisition of public right-of-way
leading to priorview First Addition and Priorview Second Addition.
In Count III, plaintiff claims that both the city and the
school district have committed fraud. In the negotiations between
plaintiff and the school district, the school district had insisted
that it receive credit for expenditures made in connection with the
construction and maintenance of its gravel driveway.
(M. ,
Exhibits 4, 5 & 8). Plaintiff alleges that "Defendant stated and
represented to Priorview that the existing road and its subgrade
had been adequately maintained and was in full compliance with city
standards and regulations for unpaved roads" (Complaint, par. 33).
Plaintiff claims that based upon these representations made by
"Defendants," it agreed to credit the school district $25,204.70.
Finally, lias to all counts" plaintiff demands punitive damages
in an amount exceeding $25,000.
II.
LEGAL ISSUES
A. DOES COUNT I ALLEGING A BREACH OF CONTRACT STATE A CAUSE OF
ACTION AGAINST THE CITY OF PRIOR LAKE?
B. IS PLAINTIFF'S CLAIM OF BREACH OF CONTRACT AGAINST THE CITY OF
PRIOR LAKE BARRED BY THE STATUTE OF LIMITATIONS WHERE THE
IMPROVEMENTS IN QUESTION WERE CONSTRUCTED AND ACCEPTED BY THE
CITY MORE THAN SIX YEARS BEFORE THE CLAIM WAS BROUGHT?
C. WHERE A DEVELOPER AGREES TO PROVIDE STREET AND OTHER UTILITIES
PURSUANT TO A DEVELOPER'S AGREEMENT AND DOES SO, DOES THE
- 5 -
DEVELOPER HAVE A CAUSE OF ACTION AGAINST THE CITY FOR UNJUST
ENRICHMENT?
D. ARE PLAINTIFF'S CLAIMS OF UNJUST ENRICHMENT IN CONNECTION WITH
THE CITY'S ACCEPTANCE OF CERTAIN STREETS AND OTHER UTILITY
IMPROVEMENTS BARRED BY THE STATUTE OF LIMITATIONS WHERE THE
CITY ACCEPTS THESE IMPROVEMENTS MORE THAN SIX YEARS BEFORE THE
CLAIM WAS BROUGHT?
E. DOES PLAINTIFF'S CLAIM AGAINST THE CITY FOR FRAUD AND
MISREPRESENTATION COMPLY WITH THE REQUIREMENTS OF RULE 9.02 OF
THE RULES OF CIVIL PROCEDURE WHICH REQUIRES THAT II IN ALL
AVERMENTS OF FRAUD OR MISTAKE, THE CIRCUMSTANCES CONSTITUTING
FRAUD OR MISTAKE SHALL BE STATED WITH PARTICULARITY?"
F. DOES PLAINTIFF STATE SUFFICIENT FACTS IN COUNT III OF ITS
COMPLAINT UPON WHICH A CLAIM FOR FRAUD CAN BE BASED?
G. IS THE CITY OF PRIOR LAKE IMMUNE FROM PLAINTIFF'S CLAIM OF
FRAUD BY VIRTUE OF THE DISCRETIONARY IMMUNITY DOCTRINE SET
FORTH IN~. STAT. 466.03, SUBD. 6?
H. SHOULD PLAINTIFF'S PRAYER FOR PUNITIVE DAMAGES BE STRICKEN
BECAUSE IT HAS NOT COMPLIED WITH THE REQUIREMENTS OF MINN.
STAT. 549. 191?
III.
LEGAL ARGUMENT
Plaintiff's Complaint against the city of Prior Lake must be
dismissed because it fails to state facts upon which any claim can
be based.
Plaintiff applied for approval of two separate
subdivisions in 1983 and 1985.
The city granted plaintiff's
applications after plaintiff agreed to provide suitable road
access, streets and other utilities. The city did not breach any
agreement with plaintiff and was not unjustly enriched when it
accepted the streets and other utilities constructed by plaintiff.
Plaintiff has no claim for fraud and its allegations of fraud are
not made with the required specificity. Furthermore, plaintiff's
claims are barred by the six year statute of limitations.
- 6 -
A. Leqal Standards For Motions For Summary Judqment.
Rule 56.03 of the Minnesota Rules of Civil Procedure provide
that the moving party is entitled to judgment as a matter of law if
no genuine issue of material fact exists.
Illinois Farmers Ins.
Co. v. Tanemark Co., 273 N.W.2d 630 (Minn. 1978).
In the case
presently before the court, the material facts are undisputed and,
as a matter of law, compel the conclusion that summary motions
should be granted. The applicable standard in Minnesota is as
follows:
Summary judgment is proper when the nonmoving
party fails to provide the court with specific
facts indicating that there is a genuine issue
of fact. [ci tation omitted] In order to
successfully oppose a motion for summary
judgment, a party cannot rely on mere general
statements of fact but rather must demonstrate
at the time the motion is made that specific
facts are in existence which create a genuine
issue for trial.
Hunt v. IBM Mid-America Emnlovees Federal Credit Ugjoq, 384 N.W.2d
8 5 3, 8 5 5 ( M i nn . 1 9 8 6) .
The courts no longer regard Rule 56 motions as a disfavored
procedural shortcut, but instead consider it to be an integral part
of the Rules of Civil Procedure, designed to "secure the just,
speedy, and inexpensive determination of every action. II .Celo~
Gorn. v. Catret~, 477 u.s. 317 (1986). Summary judgment must be
granted if the nonmoving party has failed to make a sufficient
showing to establish the existence of an essential element on which
that party will bear the burden of proof at trial. Garlisle v.
Qlly of Minneanolis" 437 N.W.2d 712, 715 (Minn. App. 1989) (quoting
- 7 -
eel 0 t e x Corn., 4 7 7 u. S . at 3 2 2 , 3 2 3 . )
"Plaintiff must present
affirmative evidence in order to defeat a properly supported motion
for summary judgment." l..d. at 715; ,see also Ander$on v. Liberty
Lobbv. Inc., 477 u.s. 242 (1986).
Summary judgment is an excellent device by which a trial court
may make expedited dispositions of those cases in which a trial
would be fruitless.
Barker v. Norman, 651 F. 2d 1107, 1123 (5th
Cir. 1981).
This is especially true with respect to lawsuits
against governmental agencies.
Government officials performing
discretionary functions generally are shielded from liability for
civil damages insofar as their conduct does not violate clearly
established statutory or constitutional rights of which a
reasonable person would have known. Harlow v. Fitzaerald, 457 U.S.
800 (1982). Courts recognize that claims against the government
involve social costs "including the expenses of litigation, the
diversion of official energy from pressing public issues, and the
deterrence of able citizens from acceptance of public office" M.
at 813.
B. Any ~ For Breach Of Contract Brouqht In Count I Against
The City Should Be Dismissed Because Of Plaintiff's Failure To
State Facts ~ Which A Claim Can Be Based And Due 'r.Q
Operation Of The Statute Of Limitations.
In its prayer for relief, plaintiff demands damages against
the city of Prior Lake in connection with its breach of contract
claim recited in Count I. The agreement which plaintiff contends
has been breached is a document signed by the superintendent and
clerk of the school district. Plaintiff makes no allegations that
the city was a party to this agreement. The paragraphs contained
- 8 -
in Count I of the Complaint make no reference to the city. In
fact, the city was not a party to any agreement for payment of the
costs of improvements to Five Hawks Avenue. Plaintiff and the city
did enter into two Developer's Agreements.
Plaintiff makes no
claim that the city breached either of these two agreements.
Since plaintiff makes no allegation in its Complaint that the
city breached any contract with plaintiff, its prayer for relief
against the city in connection with Count I must be dismissed.
Any claim against the city arising out of the construction of
the road is barred by the statute of limitations.
Minn. Stat.
541 .05, subd. 1 provides that the statute of limitations for a
claim based upon a contract is six years.
The improvements
required by the city as a condition for plat and PUD approval, were
completed in 1986. Any contract claim against the city is barred
by the statute of limitations.
c. Plaintiff Has No Cause Of Action Aqainst The City For Unjust
Enrichment.
In Count II, plaintiff alleges that both the school district
and the city "have been unjustly enriched at the expense and to the
detriment of Priorview because they have received, retained and
benefited from the road construction project undertaken by
Priorview" and "knowingly accepted the improvements to the roadway
made by Priorview and
. have received and continue receiving
the benefits of said improvements (Complaint, paras. 29, 31).
Plaintiff entitled this cause of action "Unjust Enrichment. II
Unjust enrichment occurs when a person has and retains money
or benef i ts which in justice and equity belong to another. A
- 9 -
quasi-contractual liability for unjust enrichment is based upon the
ground that a person receiving a benefit which is unjust ought to
make restitution. Mehl v. Norton, 201 Minn. 203, 275 N.W. 843
(1937). The essential elements of unjust enrichment are (1) a
benefit conferred upon the defendant by plaintiff, (2) appreciation
by the defendant of such benefit, and (3) acceptance and
restitution by the defendant of such benefit under circumstances
which make it inequitable to retain it without paying for it. 66
Am. Jr. 2d, Restitution and Implied Contracts 99 3-6, at 945-49
(1991). The retention of the benefit which results in enrichment
does not necessarily give rise to unjust enrichment. liThe
retention of the benefit must be unjust to give rise to an
obligation of restitution or payment. II Mehl v. Norton, 275 N.W. at
844 (emphasis supplied). An implied contract which gives rise to
an unjust enrichment claim cannot exist if the parties have an
express contract as well. 66 ~m. Jur. 2d Restitution and Implied
Contracts 9 6, at 948-49 (1991). The equitable relief of unjust
enrichment cannot be granted where the rights of the parties are
governed by a valid contract. Yn1ted States F~e ~. v. Minnesota
~ate Zoolo~ical Bd., 307 N.W.2d 490, 497 (Minn. 1981); ~v v.
Bush, 283 Minn. 105, 166 N. W. 2d 358 (1969).
Plaintiff's claim of unjust enrichment against the city must
fail for several reasons. First, state law, city ordinance and
common sense require that the developer of property provide the
necessary access, streets and other utilities for the project.
Plaintiff requested that the city approve its subdivision and PUD
- 10 -
application for priorview First Addition. Plaintiff's application
could not be approved if the plat was landlocked from all access.
It was plaintiff's responsibility to provide public access. With
respect to Priorview Second Addition, plaintiff's proposal included
the dedication and construction of public streets including an
extension of Five Hawks Avenue. The city simply approved
plaintiff's proposal.
Second, no court of any jurisdiction has ever held that a city
is unjustly enriched when it accepts the dedication and
construction of a public thoroughfare as part of a subdivision.
The lack of cases on this point demonstrates the absurdity of
plaintiff's position.
Third, for each of the two subdivisions, plaintiff and the
city entered into an express, written contract setting out the
obligations of the developer. Plaintiff was contractually
obligated to provide at its expense improvements to the property
including streets, sewers and other utilities. Plaintiff performed
its obligations under the two Developer's Agreements and cannot
recover its expenses from the city under a quasi-contractual theory
of liability.
Finally, plaintiff's unjust enrichment claim is barred by the
statute of limitations. Minn. Stat. 541-05, subd. 1(1) provides
for a six year statute of limitation "upon a contract or other
obligation, express or implied, as to which no other limitation is
expressly prescribed." The statute of limitations for contract
claims applies to a claim for unjust enrichment. 66 bm. J~. 2d,
- 11 -
Restitution and Implied Contracts ~ 154 (1991). Construction and
its acceptance by the city for that portion of Five Hawks Avenue
leading to Priorview First Addition was completed in 1985. The
city accepted the completed extension of Five Hawks Avenue in
Priorview Second Addition in 1986.
Since 1986, the city has
continually maintained Five Hawks Avenue. Accordingly, the statute
of limitations has run on any claim for unjust enrichment.
D. Plaintiff Has No Cause Of Action Aqainst The Ci~V For Fraud.
Its Complaint Improperly Alleqes Fraud And The City Is Immune
From This Claim.
In
Count
III,
plaintiff
alleges
fraud
and
misrepresentation against both the city and the school district.
The agreement between plaintiff and the school district provided
that those parties would share the expense of upgrading the gravel
driveway owned by the school district which begins at State Highway
13 and leads up to Priorview First Addition. The school district
contended that it had spent $25,204.70 in constructing this
driveway. Plaintiff and the school district agreed that the school
district would get credit for this expenditure in the division of
the costs.
Plaintiff alleges that "defendant stated and
represented to priorview that the existing road and its subgrade
had been adequately maintained and was in full compliance with city
standards and regulations for unpaved roads" (Complaint, par. 33).
Plaintiff states that this representation was either false or made
wi thout knowing whether or not the representation was false.
Plaintiff states that this false representation was made "with the
intention to induce Priorview to act in reliance upon them and the
- 12 -
representations were made under such circumstances that Priorview
was justified in relying upon them" and agreed to give credit to
the school district in the amount of $25,204.70 (Id., paras. 35 &
36) .
1. Plaintiff's Complaint fails to state a cause of action
aqainst the oity for fraud.
The essential elements which must be proved to support a claim
of fraud are set out in Hanson v. Ford Motor Co., 278 F.2d 586, 591
(8th Cir. 1960):
1. There must be a representation;
2. That representation must be false;
3. It must have to do with a past or present fact;
4. That fact must be material;
s. It must be susceptible of knowledge;
6. The representor must know it to be false, or in the
alternative, must assert it as of his own knowledge
without knowing whether it is true or false;
7 . The representor must intend to have the other
person induced to act or justified in acting upon
it;
8. That person must be so induced to act or so
justified in acting;
9. That person's action must be in reliance upon the
representation;
10. That person must suffer damage; and
11. That damage must be attributable to the
misrepresentation, that is, the statement must be
the proximate cause of the injury.
See also, Dav~ v. R~rao Manufgcturina Co~, 276 Minn. 116, 117,
149 N.W.2d 37, 38-39 (1967).
Plaintiff's allegations, even if true, are not sufficient to
support an action for fraud against the city. The alleged false
statement consisted of an agent of one of the defendants stating
that (1) the school district's driveway "had been adequately
maintained" and (2) "was in full compliance with city standards and
- 13 -
regulations for unpaved roads." The first portion of this alleged
statement is not a,representation of a fact. Adequate for what?
Expressions of opinion such as this will not support an action for
fraud. In Johnson v. Hed, 410 N.W.2d 423 (Minn. App. 1987), the
court held that a seller's representations concerning the adequacy
of a drainage system were not fraud since they did not represent a
present fact. Instead, the assurances were only an opinion.
Opinions are actionable only where either a position of trust or
disparity of knowledge exists. ~. at 427. Here, plaintiff hired
its own engineer to plan the improvements.
The second portion of the alleged statement also fails to
support an action for fraud. Compliance with city standards for
unpaved roads (if such standards exist) does not amount to a
warranty. The Developer's Agreement required plaintiff to improve
the road by paving it. How that improvement was to be done was
entirely up to plaintiff. This statement cannot, as a matter of
law, be material since it has no bearing on the amount of work or
cost that plaintiff would incur in improving the road. The test of
materiality is whether the alleged representation would naturally
affect the conduct of plaintiff. SaWYer v. Tildahl, 275 Minn. 457,
148 N.W.2d 131 (1967). A statement that a driveway meets city
requirements cannot be material when plaintiff agrees to bear the
costs of paving it.
In fact, plaintiff hired its own engineer and crew to perform
the improvements. Accordingly, plaintiff will not be able to prove
that any statement by the city induced it to reach an agreement
- 14 -
with the school district.
In Tavlor v. Sheehan, 435 N.W.2d 575
(Minn. App. 1989), a fraud claim brought by a purchaser of a
company was dismissed where the purchaser hired an accountant who
reviewed the company's books.
Similarly, plaintiff will not be
able to demonstrate either inducement or reliance since he hired
hi s own expert to plan the improvement.
If plaintiff has any
complaint concerning the adequacy of the work done, it should have
sought a remedy from the engineer and contractor it hired.
2. Plaintiff's alleqations fail to state the circuMstances
of fraud with sufficient particularity.
Rule 9.02 of the Rules of Civil Procedure requires:
In all averments of fraud or mistake, the
circumstances consti tuting the fraud or
mistake shall be stated with sufficient
particularity. Malice, intent, knowledge, and
other condition of mind of a person may be
averred generally.
This requirement has been enforced by the appellate courts.
Westaor v. Grimm, 318 N.W.2d 56 (Minn. 1982). Fraud claims have
been dismissed where plaintiff has failed to specify the false
statement, Juster Steel v. Carlson Cos., 366 N.W.2d 616 (Minn. App.
1985), and the extent of damages.
$eafirst Commercial Croo. v..
Soeakmans" 384 N.W.2d 895 (Minn. App. 1986).
In StuJ;)blefiftid v. G~uenbe;:g, 426 N.W.2d 912 (Minn. App.
1988), defendant alleged that the plaintiff fraudulently induced
him to sign a note but did not state any facts to support this
allegation. The appellate court affirmed the trial court's grant
of summary judgment to the plaintiff on the grounds that the fraud
- 15 -
defense was not sufficiently pled.
Similarly, the trial court's
refusal to permit an amendment to the Complaint was upheld in
Baines v. Piner. Jaffrev & Honwood. Inc.., 497 N.W.2d 263, 272
(Minn. App. 1993), where plaintiff had failed to connect a false
statement to damages suffered.
Plaintiff's fraud allegation violates Rule 7.02 in several
respects:
1. It does not state HhQ made the alleged statement.
The reader is left to speculate concerning which of
the two defendants employed the alleged
representor, the identity of that person and the
circumstances of the statement.
2. It fails to specify what is false about the
statement.
3. It fails to specify how the statement was material.
4. It does not indicate how plaintiff relied upon the
statement or how the statement caused plaintiff
damage. Plaintiff had to make arrangements with
the school district to acquire a right-of-way to
Highway 13. The school district wanted $25,204.70.
If plaintiff had not agreed to the school
district's terms, it would not have received the
right-of-way and plat approval. Plaintiff's
allegations have not, and cannot tie any alleged
false statement to any specific damage. Se~
Baines., supra.
s. Damages are not specified. Plaintiff's claim that
damages exceed $25,204.70 and II continued" are
insufficient. ~e~ S~afirst Commerc~, supra.
Accordingly, the fraud claim against the city must be
dismissed.
3. The city is immune from suit for fraud based upon the
doctrine of discretionary immunity.
Fraud is a tort. West v. Walker, 181 Minn. 169, 150 N.W. 826
(1930); Annot., 13 A.LR.3d 875, 883 (1967).
Liability of
- 16 -
municipalities for tort is governed by Minn. Stat. ch. 466.
Section 466.03, Subd. 6 provides immunity for:
Any claim based upon the performance on the
failure to exercise or perform discretionary
function or duty, whether or not the
discretion is abused.
Governmental conduct is protected from liability when the conduct
is of a policy-making nature involving social, political, or
economical considerations.
Nusbaum v. Blue Earth Countv" 422
N.W.2d 713, 722 (Minn. 1988). This exemption recognizes that the
courts are not an appropriate forum to review and second-guess acts
of government which involve the exercise of judgment or discretion.
Cairl v. State, 323 N.W.2d 20, 23 (Minn. 1982).
The city's role here was to pass judgment upon plaintiff's
application for approval of its subdivision and PUD. Cities enjoy
immunity in the exercise of that function. ~lson v. Radache~, 352
N.W.2d 389 (Minn. 1984); Anderson v. Citv of Minnea~oli~, 287 Minn.
287, 178 N.W.2d at 215 (1970). Plaintiff's lawsuit is against the
city - not any city employee. If plaintiff had sued a specific
ci ty employee, that employee could invoke a broader immunity -
official immunity - which would apply absent a showing of malice.
In this case, the doctrine of discretionary immunity governs.
E. Plaintiff's Claim For Punitive Damaqes Must Be Stricken.
Plaintiff's prayer for relief demands punitive damages in
excess of $25,000 against the school district and the city.
Plaintiff's claim violates the clear mandate of Minn. Stat. 549.191
which requires plaintiff to receive court approval before any claim
- 17 -
for punitive damages can be asserted. Plaintiff has violated that
statute, and its claim for punitive damages must be stricken.
IV.
CONCLUSION
Plaintiff is a developer who sought approval for two
subdivisions within the city of Prior Lake.
In accordance with
state law and city ordinance, the city required plaintiff to
provide access to its development and the appropriate streets and
utilities.
Plaintiff executed two Developer's Agreements and
complied with the provisions of those agreements. The city did not
breach any agreement that it had with plaintiff and was not
unjustly enriched by its acceptance of Five Hawks Avenue.
Plaintiff's action for fraud is improperly pleaded and does not
state a cause of action against the city. Accordingly, plaintiff's
complaint against the city of Prior Lake must be dismissed.
Dated: September 22, 1993.
LOMMEN, NELSON, COLE & STAGEBERG, P.A.
BY
Stephen C. Rathke, I.D. No. 89771
Attorneys for City of Prior Lake
1800 IDS Center
1800 South 8th Street
Minneapolis, MN 55402
(612) 339-8131
S: \SHDATA\P31893\SCR\PRIOR. PMl
- 18 -