St. Paul Park Refining Co., LLC v. Brian Domeier

Minnesota Court of Appeals

St. Paul Park Refining Co., LLC v. Brian Domeier

Opinion

                  This opinion is nonprecedential except as provided by
                        Minn. R. Civ. App. P. 136.01, subd. 1(c).

                               STATE OF MINNESOTA
                               IN COURT OF APPEALS
                                     A23-0022

                             St. Paul Park Refining Co., LLC,
                                       Respondent,

                                            vs.

                                      Brian Domeier,
                                        Appellant.

                                  Filed January 8, 2024
                                        Affirmed
                                   Segal, Chief Judge


                            Washington County District Court
                               File No. 82-CV-17-5229

Matthew J. Schaap, Robert B. Bauer, Dougherty, Molenda, Solfest, Hills & Bauer P.A.,
Apple Valley, Minnesota (for respondent)

Erik F. Hansen, Elizabeth M. Cadem, Burns & Hansen P.A., Minneapolis, Minnesota (for
appellant)

       Considered and decided by Smith, Tracy M., Presiding Judge; Segal, Chief Judge;

and Gaïtas, Judge.

                           NONPRECEDENTIAL OPINION

SEGAL, Chief Judge

       In this appeal of an order for partial summary judgment dismissing appellant’s

counterclaim for adverse possession, appellant argues that the district court erred by

applying an intervening change in the law instead of adhering to the doctrine of “law of the
case.” Appellant also maintains that there are genuine issues of material fact that require

reversal of the summary-judgment order. We affirm.

                                           FACTS

       This case is before our court for the second time. See St. Paul Park Refin. Co. v.

Domeier, 
938 N.W.2d 288
, 296 (Minn. App. 2020) (Domeier I), aff’d, 
950 N.W.2d 547

(Minn. 2020) (Domeier II). Because the prior appeal is interrelated with the issues now

before us, a review of the procedural background of this case is in order.

       Respondent St. Paul Park Refining Co., LLC (the refinery) initiated this suit against

appellant Brian Domeier, alleging claims for trespass and ejectment related to two portions

of two parcels of property owned by the refinery—a portion covering 2.11 acres of a 39.7

acre parcel (the east portion) and a second portion covering 3.22 acres of a 6.2 acre parcel

(the west portion). Domeier counterclaimed, alleging adverse possession, trespass, and

ejectment.

       The first appeal in this case arose out of the district court’s grant of partial summary

judgment against Domeier on his adverse-possession claims to both the east and west

portions. The district court determined that Domeier’s claim was defective as to both

portions because Domeier had not paid any property taxes on the refinery’s property

pursuant to 
Minn. Stat. § 541.02
 (2022). Section 541.02 requires that, for any parcel that

is separately assessed for tax purposes, the party claiming adverse possession must have

paid property taxes “on the real estate in question at least five consecutive years of the time

during which the party claims [the property] to have been occupied adversely,” subject to

certain exemptions not applicable here. Both parties agree that the disputed portions were


                                              2
located on separately assessed parcels and that Domeier had never paid any property taxes

for the parcels.

       On appeal of that decision, this court affirmed the summary-judgment award in

favor of the refinery on the west portion, which covered 52% of the separately assessed

parcel on which it was located. Domeier I, 938 N.W.2d at 296. But we reversed the

summary-judgment award as to the east portion, reasoning that it accounted for only

slightly more than 5% of the separately assessed parcel. Id. We concluded that such a

small percentage was not sufficient to trigger the property-tax-payment requirement of

section 541.02. Id.

       Domeier petitioned the supreme court for review of this court’s decision concerning

the west portion. The refinery did not seek review of our decision concerning the east

portion. The supreme court accepted review. In its opinion, the supreme court rejected

this court’s interpretation of section 541.02, that the applicability of the tax-payment

requirement depends on the percentage of the parcel being claimed. Domeier II, 950

N.W.2d at 552. The supreme court established a bright-line rule that section 541.02

requires the payment of property taxes when there is a claim of adverse possession for “any

portion of a separately assessed parcel,” barring the applicability of one of the exemptions.

Id. The supreme court thus affirmed the dismissal of Domeier’s claim related to the west

portion and remanded the case to the district court. Id. The supreme court referenced the

refinery’s failure to seek review of our court’s ruling on the east portion, stating in a

footnote:




                                             3
              The Refinery did not seek review of the court of appeals’
              decision concerning the east parcel, so that issue is not before
              us. We express no opinion as to the outcome of the parties’
              dispute regarding the east parcel when this matter returns to the
              district court.

Id. at 552 n.3.

       On remand, the refinery renewed its motion for partial summary judgment on

Domeier’s adverse-possession claim as to the east portion. Domeier opposed the motion,

arguing in part that this court’s ruling in Domeier I was binding as law of the case because

the refinery did not seek review of that ruling in the supreme court. The district court

rejected Domeier’s law-of-the-case argument and granted summary judgment for the

refinery on the same grounds as it had initially—that Domeier’s failure to pay property

taxes for the parcel on which the east portion was located was fatal to his adverse-

possession claim.

       After the district court granted the refinery’s motion for partial summary judgment

on the east portion, the parties filed a stipulation for dismissal with prejudice of the parties’

remaining claims. Based on that stipulation, the district court entered final judgment, and

Domeier filed this appeal.

                                         DECISION

       Domeier maintains that the district court erred when it declined to apply the law-of-

the-case doctrine in granting summary judgment to the refinery on his claim for adverse

possession of the east portion. He also argues that summary judgment is improper because

there are genuine issues of material fact on the elements of his adverse-possession claim.




                                               4
       On appeal from a grant of summary judgment, this court reviews de novo “whether

the district court properly applied the law and whether there are genuine issues of material

fact that preclude summary judgment.” Riverview Muir Doran, LLC v. JADT Dev. Grp.,

LLC, 
790 N.W.2d 167, 170
 (Minn. 2010). All doubts and factual inferences are resolved

against the moving party. Fenrich v. Blake Sch., 
920 N.W.2d 195, 201
 (Minn. 2018).

Summary judgment is appropriate if “there is no genuine issue as to any material fact and

the movant is entitled to judgment as a matter of law.” Minn. R. Civ. P. 56.01.

       The law-of-the-case doctrine is a preclusive doctrine designed to prevent relitigation

of issues. Generally, the law-of-the-case doctrine renders a decision in the first appeal the

law of the case in a subsequent appeal where the facts are the same or substantially the

same. See, e.g., Nees v. Minneapolis St. Ry. Co., 
22 N.W.2d 164, 164
 (Minn. 1946)

(holding the damages decision in the first appeal was the law of the case in the second

appeal because no new facts were established).

       But the law-of-the-case doctrine is a rule of practice, not a rigid rule of law, and

courts are accorded some degree of discretion in applying the doctrine. Goneau v.

Minneapolis, St. P. & S. S. M. Ry. Co., 
198 N.W. 403, 403
 (Minn. 1924), aff’d, 
269 U.S. 406
 (1926). Our court, for example, has recognized an exception when there has been an

intervening change in controlling law. See McClelland v. McClelland, 
393 N.W.2d 224, 226
 (Minn. App. 1986), rev. denied (Minn. Nov. 17, 1986).

       The district court relied on the intervening change-in-the-law exception in granting

summary judgment against Domeier as to the east portion. We discern no error in the

district court’s decision. Based on the supreme court’s holding in Domeier II, our opinion


                                             5
concerning the east portion was incorrect. As such, the district court was justified in

deviating from the law-of-the-case doctrine and applying, instead, the supreme court’s

interpretation of the tax-payment requirement set out in Domeier II.

       Domeier challenges the district court’s decision, arguing that the McClelland case

relied on by the district court is inapposite because it involved an intervening amendment

to a statute, not an appellate ruling in the same case as occurred here. We disagree. In the

context of this case, we conclude that this is a distinction without a meaningful difference.

Regardless of the cause—by a statutory amendment or new case precedent—the fact

remains that there was an intervening change in the controlling law and the district court

thus did not err in applying the exception recognized in McLelland.

       Domeier also argues that the district court erred because the refinery waived the tax-

payment issue as to the east portion when it failed to seek review by the supreme court of

our ruling on that portion. While it is true that the refinery failed to seek such review, it is

also true that the supreme court remanded this case to the district court for further

proceedings, including proceedings on the east portion. The supreme court stated that it

was expressing “no opinion as to the outcome of the parties’ dispute regarding the east

portion when this matter returns to the district court.” Domeier II, 950 N.W.2d at 552 n.3.

In short, no final determination had yet been reached concerning the east portion when the

refinery brought its renewed motion for summary judgment. See Minn. R. Civ. P. 54.02

(explaining a district court’s order is “subject to revision at any time” before the case is

final). Without a final determination, it would lead to an absurd result if the district court

was required to apply an interpretation of a statute that is no longer good law in reaching a


                                               6
final judgment. See Johnson v. USL Prods., Inc., No. A13-0525, 
2013 WL 6839747
, at *4

(Minn. App. Dec. 30, 2013) (cited for its persuasive value and stating that “the law-of-the-

case doctrine is not so inflexible so as to allow for absurd or inequitable results”).

       Because we have determined that Domeier’s claim fails because he did not pay any

taxes for the parcel where the east portion is located, we need not analyze whether there

are genuine issues of material fact on the other elements necessary to succeed on a claim

of adverse possession.

       Affirmed.




                                              7


Reference

Status
Unpublished
Syllabus
In this appeal of an order for partial summary judgment dismissing appellant's counterclaim for adverse possession, appellant argues that the district court erred by applying an intervening change in the law instead of adhering to the doctrine of \law of the case.\" Appellant also maintains that there are genuine issues of material fact that require reversal of the summary-judgment order. We affirm."