1.1                          A bill for an act 
  1.2             relating to civil actions; regulating certifications 
  1.3             of expert reviews in medical malpractice actions; 
  1.4             regulating liens for attorney fees; clarifying a 
  1.5             reference to, and the application of, the medical 
  1.6             malpractice statute of limitations; amending Minnesota 
  1.7             Statutes 2000, sections 145.682, subdivision 6; 
  1.8             573.02, subdivision 1. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2000, section 145.682, 
  1.11  subdivision 6, is amended to read: 
  1.12     Subd. 6.  [PENALTY FOR NONCOMPLIANCE.] (a) Failure to 
  1.13  comply with subdivision 2, clause (1), within 60 days after 
  1.14  demand for the affidavit results, upon motion, in mandatory 
  1.15  dismissal with prejudice of each cause of action as to which 
  1.16  expert testimony is necessary to establish a prima facie case.  
  1.17     (b) Failure to comply with subdivision 2, clause (2), and 
  1.18  subdivision 4 results, upon motion, in mandatory dismissal with 
  1.19  prejudice of each cause of action as to which expert testimony 
  1.20  is necessary to establish a prima facie case. 
  1.21     (c) Failure to comply with subdivision 4 because of 
  1.22  deficiencies in the affidavit or answers to interrogatories 
  1.23  results, upon motion, in mandatory dismissal with prejudice of 
  1.24  each action as to which expert testimony is necessary to 
  1.25  establish a prima facie case, provided that:  
  1.26     (1) the motion to dismiss the action identifies the claimed 
  1.27  deficiencies in the affidavit or answers to interrogatories; 
  2.1      (2) the time for hearing the motion is at least 45 days 
  2.2   from the date of service of the motion; and 
  2.3      (3) before the hearing on the motion, the plaintiff does 
  2.4   not serve upon the defendant an amended affidavit or answers to 
  2.5   interrogatories that correct the claimed deficiencies.  
  2.6      Sec. 2.  Minnesota Statutes 2000, section 481.13, is 
  2.7   amended to read: 
  2.8      481.13 [LIEN FOR ATTORNEYS' FEES.] 
  2.9      Subdivision 1.  [GENERALLY.] (a) An attorney has a lien for 
  2.10  compensation whether the agreement therefor be for compensation 
  2.11  is expressed or implied: (1) upon the cause of action from the 
  2.12  time of the service of the summons therein in the action, or the 
  2.13  commencement of the proceeding, and (2) upon the interest of the 
  2.14  attorney's client in any money or property involved in or 
  2.15  affected by any action or proceeding in which the attorney may 
  2.16  have been employed, from the commencement of the action or 
  2.17  proceeding, and, as against third parties, from the time of 
  2.18  filing the notice of such the lien claim, as provided in this 
  2.19  section;. 
  2.20     (2) (b) An attorney has a lien for compensation upon a 
  2.21  judgment, and whether there be is a special express or implied 
  2.22  agreement as to compensation, or whether a lien is claimed for 
  2.23  the reasonable value of the services,.  The lien shall extend 
  2.24  extends to the amount thereof of the judgment from the time of 
  2.25  giving notice of the claim to the judgment debtor, but this.  
  2.26  The lien under this paragraph is subordinate to the rights 
  2.27  existing between the parties to the action or proceeding;. 
  2.28     (3) The liens (c) A lien provided by clauses (1) and 
  2.29  (2) paragraphs (a) and (b) may be established, and the 
  2.30  amount thereof of the lien may be determined, by the court, 
  2.31  summarily, in the action or proceeding, by the court under this 
  2.32  paragraph on the application of the lien claimant or of any 
  2.33  person or party interested in the property subject to such the 
  2.34  lien, on such notice to all parties interested therein as the 
  2.35  court may, by order to show cause, prescribe, or such liens may 
  2.36  be enforced, and the amount thereof determined, by the court, in 
  3.1   an action for equitable relief brought for that purpose. 
  3.2      Judgment shall be entered under the direction of the court, 
  3.3   adjudging the amount due. 
  3.4      Subd. 2.  [PERFECTION OF LIEN.] (4) (a) If the lien is 
  3.5   claimed on the client's interest in real estate property 
  3.6   involved in or affected by the action or proceeding, such a 
  3.7   notice of intention to claim a lien thereon on the property 
  3.8   shall must be filed in the office of the county recorder or 
  3.9   registrar of titles, where appropriate, and therein noted on the 
  3.10  certificate or certificates of title affected, in and for the 
  3.11  county within which where the same real property is 
  3.12  situated located.  Within 30 days of filing a lien on real 
  3.13  property, the claimant must prepare and deliver a written notice 
  3.14  of the filing personally or by certified mail to the owner of 
  3.15  the real property or the owner's authorized agent.  A person who 
  3.16  fails to provide the required notice shall not have the lien and 
  3.17  remedy provided by this section.  Upon receipt of payment in 
  3.18  full of the debt which gave rise to the lien, the lienholder 
  3.19  shall deliver within 30 days a recordable satisfaction and 
  3.20  release of lien to the owner of the real property or the owner's 
  3.21  authorized agent.  No notice of intent to claim a lien may be 
  3.22  filed more than 120 days after the last item of claim. 
  3.23     (b) If the lien is claimed on the client's interest in 
  3.24  personal property involved in or affected by the action or 
  3.25  proceeding, the notice shall must be filed in the same manner as 
  3.26  provided by law for the filing of a security interest. 
  3.27     Subd. 3.  [ONE-YEAR LIMITATION.] No lien against real 
  3.28  property shall be enforced unless the lienholder, by filing 
  3.29  either a complaint or an answer with the court administrator, 
  3.30  asserts a lien within one year after the filing of the notice of 
  3.31  intention to claim a lien, unless the owner has agreed to a 
  3.32  longer time period to assert the lien.  In no event may the lien 
  3.33  be asserted more than three years after filing.  No person is 
  3.34  bound by any judgment in the action unless made a party to the 
  3.35  action within the time limit.  The absence from the record of a 
  3.36  notice of lis pendens of an action after the expiration of the 
  4.1   time limit in which the lien could be so asserted is conclusive 
  4.2   evidence that the lien may no longer be enforced as to a bona 
  4.3   fide purchaser, mortgagee, or encumbrancer without notice.  In 
  4.4   the case of registered land, the registrar of titles shall 
  4.5   refrain from carrying forward to new certificates of title the 
  4.6   memorials of lien statements when no notice of lis pendens has 
  4.7   been registered within the time limit. 
  4.8      Sec. 3.  Minnesota Statutes 2000, section 573.02, 
  4.9   subdivision 1, is amended to read: 
  4.10     Subdivision 1.  When death is caused by the wrongful act or 
  4.11  omission of any person or corporation, the trustee appointed as 
  4.12  provided in subdivision 3 may maintain an action therefor if the 
  4.13  decedent might have maintained an action, had the decedent 
  4.14  lived, for an injury caused by the wrongful act or omission.  An 
  4.15  action to recover damages for a death caused by the alleged 
  4.16  professional negligence of a physician, surgeon, dentist, 
  4.17  hospital or sanitarium, or an employee of a physician, surgeon, 
  4.18  dentist, hospital or sanitarium shall be commenced within the 
  4.19  time set forth in section 541.07, subdivision 1 three years of 
  4.20  the date of death, but in no event shall be commenced beyond the 
  4.21  time set forth in section 541.076.  An action to recover damages 
  4.22  for a death caused by an intentional act constituting murder may 
  4.23  be commenced at any time after the death of the decedent.  Any 
  4.24  other action under this section may be commenced within three 
  4.25  years after the date of death provided that the action must be 
  4.26  commenced within six years after the act or omission.  The 
  4.27  recovery in the action is the amount the jury deems fair and 
  4.28  just in reference to the pecuniary loss resulting from the 
  4.29  death, and shall be for the exclusive benefit of the surviving 
  4.30  spouse and next of kin, proportionate to the pecuniary loss 
  4.31  severally suffered by the death.  The court then determines the 
  4.32  proportionate pecuniary loss of the persons entitled to the 
  4.33  recovery and orders distribution accordingly.  Funeral expenses 
  4.34  and any demand for the support of the decedent allowed by the 
  4.35  court having jurisdiction of the action, are first deducted and 
  4.36  paid.  Punitive damages may be awarded as provided in section 
  5.1   549.20.  
  5.2      If an action for the injury was commenced by the decedent 
  5.3   and not finally determined while living, it may be continued by 
  5.4   the trustee for recovery of damages for the exclusive benefit of 
  5.5   the surviving spouse and next of kin, proportionate to the 
  5.6   pecuniary loss severally suffered by the death.  The court on 
  5.7   motion shall make an order allowing the continuance and 
  5.8   directing pleadings to be made and issues framed as in actions 
  5.9   begun under this section. 
  5.10     Sec. 4.  Laws 1999, chapter 23, section 3, is amended to 
  5.11  read: 
  5.12     Sec. 3.  [EFFECTIVE DATE; APPLICATION.] 
  5.13     Section 2 is effective August 1, 1999, and applies to.  
  5.14  Notwithstanding Minnesota Statutes, section 645.21, actions 
  5.15  commenced on or after that date are subject to the limitations 
  5.16  period under section 2.  Actions pending or commenced before 
  5.17  August 1, 1999, are subject to the limitations period under 
  5.18  Minnesota Statutes 1998, section 541.07. 
  5.19     Sec. 5.  [EFFECTIVE DATE; APPLICATION.] 
  5.20     Section 1 is effective August 1, 2001, and applies to 
  5.21  causes of action arising from incidents occurring on or after 
  5.22  that date.  Sections 3 and 4 are effective retroactive to August 
  5.23  1, 1999.  Section 2 is effective August 1, 2001, and applies to 
  5.24  a notice of intention to claim a lien filed on or after that 
  5.25  date.