HF 2964

as introduced - 88th Legislature (2013 - 2014) Posted on 03/12/2014 11:28am

A bill for an act
relating to insurance; regulating the award of taxable costs in certain actions;
amending Minnesota Statutes 2012, section 604.18, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 604.18, subdivision 4, is amended to read:

Subd. 4.

Claim for taxable costs.

(a) Upon commencement of a civil action by an
insured against an insurer, the complaint must not seek a recovery under this section. After
deleted text begin filing the suit deleted text end new text begin judgment is entered or after trial of the action new text end , a party may make a motion to
amend the pleadings to claim recovery of taxable costs under this section. new text begin The moving
party must be permitted discovery on the liability issue under subdivision 2 before the
motion to amend the pleadings is made. new text end The motion must allege the applicable legal basis
under this section for awarding taxable costs under this section, and must be accompanied
by one or more affidavits showing the factual basis for the motion. The motion may be
opposed by the submission of one or more affidavits showing there is no factual basis
for the motion. At the hearing, if the court finds prima facie evidence in support of the
motion, the court may grant the moving party permission to amend the pleadings to claim
taxable costs under this section.

(b) An award of taxable costs under this section shall be determined by the court in a
proceeding subsequent to any determination by a fact finder of the amount an insured is
entitled to under the insurance policy, and shall be governed by the procedures set forth
in Minnesota General Rules of Practice, Rule 119. new text begin The verdict in the action brought
pursuant to this section must be considered by the court in awarding taxable costs under
this subdivision.
new text end

(c) An award of taxable costs under this section is not available in any claim that is
resolved or confirmed by arbitration or appraisal.

(d) The following are not admissible in any proceeding that seeks taxable costs
under this section:

(1) findings or determinations made in arbitration proceedings conducted under
section 65B.525 or rules adopted under that section;

(2) allegations involving, or results of, investigations, examinations, or
administrative proceedings conducted by the Department of Commerce;

(3) administrative bulletins or other informal guidance published or disseminated by
the Department of Commerce; and

(4) provisions under chapters 59A to 79A and rules adopted under those sections
are not admissible as standards of conduct.

(e) A claim for taxable costs under this section may not be assigned. This paragraph
does not affect the assignment of rights not established in this section.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies to awards of taxable costs made on or after that date.
new text end