HF 2572

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to civil actions; providing requirements for 
  1.3             certification of a class action; proposing coding in 
  1.4             Minnesota Statutes, chapter 540. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [540.19] [CLASS ACTION CERTIFICATION.] 
  1.7      Subdivision 1.  [SCOPE.] This section governs the 
  1.8   certification of civil class actions in the district court and 
  1.9   supersedes any contrary provisions in Minnesota Rules of Civil 
  1.10  Procedure, Rule 23. 
  1.11     Subd. 2.  [CONFERENCE.] The court shall hold a conference 
  1.12  among all named parties to the action for the purpose of 
  1.13  establishing a schedule for any discovery allowed by Minnesota 
  1.14  Rules of Civil Procedure, Rule 26, and requested by the parties, 
  1.15  which is germane to the issue whether the requested class should 
  1.16  or should not be certified.  The conference shall be held in the 
  1.17  same manner and to the same extent provided by Minnesota Rules 
  1.18  of Civil Procedure, Rule 16.  The conference shall be held as 
  1.19  soon as practicable after the commencement of an action in which 
  1.20  claims or defenses are asserted on behalf of or against a class, 
  1.21  or as soon as practicable after such assertions in an amended 
  1.22  pleading; but in no event prior to the time allowed by law for 
  1.23  each party, including, but not limited to, counterclaim, 
  1.24  cross-claim, and third-party defendants, to file an answer or 
  1.25  other pleading responsive to the complaint, counterclaim, 
  2.1   cross-claim, or third-party claim.  
  2.2      At the conference, the court may set a date for a hearing 
  2.3   on the issue of class certification, but the hearing may not be 
  2.4   set sooner than 90 days after the date on which the court issues 
  2.5   its scheduling order pursuant to the conference unless a shorter 
  2.6   time is agreed to by all parties. 
  2.7      Subd. 3.  [MOTION TO STAY DISCOVERY.] Upon motion of any 
  2.8   party, the court shall, except for good cause shown and even 
  2.9   then only if the interests of justice require that it not do so, 
  2.10  stay all discovery directed solely to the merits of the claims 
  2.11  or defenses in the action until the court has made its decision 
  2.12  regarding certification of the class.  In considering the 
  2.13  motion, the court shall consider whether any prejudice to the 
  2.14  plaintiff exists because of the filing by the defendant of a 
  2.15  Minnesota Rules of Civil Procedure, Rule 56 motion for summary 
  2.16  judgment prior to the court's decision regarding class 
  2.17  certification. 
  2.18     Subd. 4.  [HEARING ON CLASS CERTIFICATION.] The court 
  2.19  shall, on motion of any party, hold a full evidentiary hearing 
  2.20  on class certification.  The hearing shall be recorded, and all 
  2.21  named parties to the action shall be given notice of the date, 
  2.22  time, and place of the hearing by written notification given to 
  2.23  the party's attorney, or, if appearing pro se, to the party, no 
  2.24  later than 60 days prior to the date set for the hearing.  At 
  2.25  the hearing, the parties shall be allowed to present, in the 
  2.26  same manner as at trial, any admissible evidence in support of 
  2.27  or in opposition to the certification of the class. 
  2.28     Subd. 5.  [STANDARDS FOR CLASS CERTIFICATION.] When 
  2.29  deciding whether a requested class is to be certified, the court 
  2.30  shall determine, by employing a rigorous analysis, if the party 
  2.31  requesting class certification has proved its entitlement to 
  2.32  class certification under Minnesota Rules of Civil Procedure, 
  2.33  Rule 23.  The burden of coming forward with the proof shall at 
  2.34  all times be on the party or parties seeking certification and, 
  2.35  if the proof is not adduced, the court shall not order 
  2.36  certification of the class.  In making this determination, the 
  3.1   court shall analyze all factors required by Minnesota Rules of 
  3.2   Civil Procedure, Rule 23, for certification of a class and shall 
  3.3   not order certification unless all factors have been 
  3.4   established.  In announcing its determination, the court shall 
  3.5   place in the record of the action a written order addressing all 
  3.6   factors and specifying the evidence, or lack of evidence, on 
  3.7   which the court has based its decision with regard to whether 
  3.8   each factor has been established.  In so doing, the court may 
  3.9   treat a factor as having been established if all parties to the 
  3.10  action have so stipulated on the record and if the court is 
  3.11  satisfied that the factor could be proven. 
  3.12     Subd. 6.  [CLASS MEMBERSHIP REQUIREMENT.] In order to be a 
  3.13  member of a class, an individual must have suffered at least $1 
  3.14  in damages. 
  3.15     Subd. 7.  [OTHER RULES.] This section does not affect 
  3.16  Minnesota Rules of Civil Procedure, Rules 12 and 56. 
  3.17     Subd. 8.  [APPEAL OF CERTIFICATION ORDER.] A court's order 
  3.18  certifying a class or refusing to certify a class action is 
  3.19  appealable in the same manner as a final order to the Court of 
  3.20  Appeals.  An appeal must be filed within 42 days of the order 
  3.21  certifying or refusing to certify the class.  The filing of an 
  3.22  appeal, the failure to file an appeal, or the affirmance of the 
  3.23  certification or denial order does not affect the right of any 
  3.24  party, after the entry of final judgment, to appeal the earlier 
  3.25  certification of, or refusal to certify, the class.  If the 
  3.26  appeal is not the first appeal taken by the party, the 
  3.27  subsequent appeal shall be based upon the record at the time of 
  3.28  final judgment and shall be considered by the court only to the 
  3.29  extent that either the facts or controlling law relevant to 
  3.30  certification have changed from what existed or controlled at 
  3.31  the time of the earlier certification or refusal to certify. 
  3.32     During the pendency of an appeal, the action in the trial 
  3.33  court shall be stayed in all respects.  Following appeal, if the 
  3.34  class is not to be certified, the stay in the trial court 
  3.35  automatically dissolves and the trial court may proceed to 
  3.36  adjudicate any remaining individual claims or defenses.  If, 
  4.1   after such appeal, the class is to be certified, the stay 
  4.2   dissolves and the trial court shall proceed with adjudication on 
  4.3   the merits.  The trial court shall, at all times prior to entry 
  4.4   of a final order, retain jurisdiction to revisit the 
  4.5   certification issues upon motion of a party and to order 
  4.6   decertification of the class, if, during the litigation of the 
  4.7   case, it becomes evident to the court that the action is no 
  4.8   longer reasonably maintainable as a class action pursuant to the 
  4.9   factors enumerated in Minnesota Rules of Civil Procedure, Rule 
  4.10  23.01.