1.1 	A bill for an act
1.2 	relating to civil actions; providing a factor for
1.3 	determining the amount of attorney fees awarded in
1.4 	certain actions; proposing coding for new law in
1.5 	Minnesota Statutes, chapter 549.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [549.255] ATTORNEY FEES AWARDS.
1.8 		Subdivision 1.Reasonable relation of fees to
1.9 	damages. When a statute provides for the award of attorney fees
1.10 	to a party that has recovered money damages, the court, in
1.11 	setting the amount of attorney fees, must, in addition to other
1.12 	factors, including equitable relief, take into consideration the
1.13 	reasonableness of the attorney fees sought in relation to the
1.14 	amount of damages awarded to the prevailing party.
1.15 		Subd. 2.Offer of judgment. If an offer of judgment is
1.16 	made by a party under Rule 68 of the Rules of Civil Procedure to
1.17 	a party who may be entitled to an award of attorney fees under
1.18 	statute, and the party claiming attorney fees does not obtain a
1.19 	verdict in excess of the offer, exclusive of attorney fees, no
1.20 	attorney fees may be awarded for fees incurred after service of
1.21 	the offer of judgment.

1.22 	Sec. 2. EFFECTIVE DATE.
 1.23 	This act is effective August 1, 2005, and applies to
1.24 	actions commenced on or after that date.