HF 3132

as introduced - 86th Legislature (2009 - 2010) Posted on 02/22/2010 11:53am

A bill for an act
relating to civil actions; awarding fees and expenses to prevailing parties in
certain actions involving municipalities; proposing coding for new law in
Minnesota Statutes, chapter 471.

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

Section 1.

new text begin [471.421] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms defined. new text end

new text begin For purposes of sections 471.421 to 471.423, the
terms defined in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Expenses. new text end

new text begin "Expenses" means the costs incurred by the party in the
litigation, including:
new text end

new text begin (1) filing fees;
new text end

new text begin (2) subpoena fees and mileage;
new text end

new text begin (3) transcript costs and court reporter fees;
new text end

new text begin (4) expert witness fees;
new text end

new text begin (5) the reasonable cost of any study, analysis, engineering report, survey, appraisal,
test, or project;
new text end

new text begin (6) photocopying and printing costs;
new text end

new text begin (7) postage and delivery costs; and
new text end

new text begin (8) service of process fees.
new text end

new text begin Subd. 3. new text end

new text begin Fees. new text end

new text begin "Fees" means the reasonable attorney fees or reasonable fees charged
by a person not an attorney who is authorized by law or rule to represent the party and
may include reasonable charges by the party, the party's employee, or agent. The amount
of fees must be based upon prevailing market rates for the kind and quality of the services
furnished. In a court action, an expert witness may not be compensated at a rate in excess
of the highest rate of compensation for expert witnesses paid by the state.
new text end

new text begin Subd. 4. new text end

new text begin Municipality. new text end

new text begin "Municipality" means a home rule charter or statutory city,
county, town, school district, political subdivision, or agency of local government. The
term also includes the Metropolitan Council or a board or agency created under chapter
473.
new text end

new text begin Subd. 5. new text end

new text begin Party. new text end

new text begin (a) Except as modified by paragraph (b), "party" means a person
named or admitted as a party, or seeking and entitled to be admitted as a party, in a court
action, and who is:
new text end

new text begin (1) an unincorporated business, partnership, corporation, association, or organization,
having not more than 500 employees at the time the civil action was filed; and
new text end

new text begin (2) an unincorporated business, partnership, corporation, association, or organization
whose annual revenues did not exceed $7,000,000 at the time the civil action was filed.
new text end

new text begin (b) "Party" also includes a partner, officer, shareholder, member, or owner of an
entity described in paragraph (a), clauses (1) and (2). The term does not include a party in
a civil action brought by or against the municipality in connection with the granting or
denying of a liquor license.
new text end

new text begin Subd. 6. new text end

new text begin Substantially justified. new text end

new text begin "Substantially justified" means that the
municipality's position had a reasonable basis in law and fact, based on the totality of the
circumstances before and during the litigation.
new text end

Sec. 2.

new text begin [471.422] FEES AND EXPENSES; CIVIL ACTION INVOLVING
MUNICIPALITY.
new text end

new text begin (a) The court shall award fees and other expenses to a prevailing party in a civil
action unless special circumstances make an award unjust, provided that:
new text end

new text begin (1) the action is a civil action other than a tort action;
new text end

new text begin (2) the municipality's orders or total cost of compliance with the orders is in an
amount of $10,000 or more;
new text end

new text begin (3) the prevailing party is not the municipality; and
new text end

new text begin (4) the position of the municipality was not substantially justified.
new text end

new text begin (b) A party seeking an award of fees and other expenses shall, within 30 days of
final judgment in the action, submit to the court an application of fees and other expenses
that shows that the party is a prevailing party and is eligible to receive an award, and the
amount sought, including an itemized statement from any attorney or expert witness
representing or appearing on behalf of the party stating the actual time expended and the
rate at which fees and other expenses were computed. The party shall also allege that the
position of the municipality was not substantially justified.
new text end

new text begin (c) The court may reduce the amount to be awarded under this section, or deny an
award, to the extent that the prevailing party during the proceedings engaged in conduct
that unduly and unreasonably protracted the final resolution of the matter in controversy.
new text end

new text begin (d) This section does not preclude a party from recovering costs, disbursements,
fees, and expenses under other applicable law.
new text end

Sec. 3.

new text begin [471.423] PAYMENT OF COSTS AND FEES.
new text end

new text begin A judgment against a municipality in a civil action for fees and expenses under
section 471.422 must be paid from funds of the municipality.
new text end

Sec. 4. new text begin EFFECTIVE DATE; APPLICATION.
new text end

new text begin This act is effective August 1, 2010, and applies to civil actions commenced on or
after that date.
new text end