1.1A bill for an act1.2relating to civil actions; modifying liability limits for certain tort claims against 1.3the state and political subdivisions; regulating certain conciliation court claims; 1.4providing a right of appeal on certain class action orders; modifying prejudgment 1.5interest; regulating attorney fees; providing a cause of action for sex trafficking 1.6violations;amending Minnesota Statutes 2010, sections 3.736, subdivision 4; 1.7466.03, subdivision 6e, by adding a subdivision; 466.04, subdivisions 1, 3; 1.8491A.01, subdivision 3; 549.09, subdivisions 1, 2; proposing coding for new law 1.9in Minnesota Statutes, chapters 540; 549; 609.1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.11    Section 1. Minnesota Statutes 2010, section 3.736, subdivision 4, is amended to read:1.12    Subd. 4. Limits. The total liability of the state and its employees acting within the 1.13scope of their employment on any tort claim shall not exceed:1.14    (a) $300,000 when the claim is one for death by wrongful act or omission and 1.15$300,000 to any claimant in any other case, for claims arising before August 1, 2007;1.16    (b) $400,000 when the claim is one for death by wrongful act or omission and 1.17$400,000 to any claimant in any other case, for claims arising on or after August 1, 2007, 1.18and before July 1, 2009;1.19    (c) $500,000 when the claim is one for death by wrongful act or omission and 1.20$500,000 to any claimant in any other case, for claims arising on or after July 1, 2009;1.21    (d) $750,000 for any number of claims arising out of a single occurrence, for claims 1.22arising on or after January 1, 1998, and before January 1, 2000;1.23    (e) $1,000,000 for any number of claims arising out of a single occurrence, for 1.24claims arising on or after January 1, 2000, and before January 1, 2008;1.25    (f) $1,200,000 for any number of claims arising out of a single occurrence, for 1.26claims arising on or after January 1, 2008, and before July 1, 2009; or2.1    (g) $1,500,000 for any number of claims arising out of a single occurrence, for 2.2claims arising on or after July 1, 2009; or2.3(h) $1,000,000 for any number of claims arising out of a single occurrence, if the 2.4claim involves a nonprofit organization engaged in or administering outdoor recreational 2.5activities funded in whole or in part by the state or operating under the authorization of 2.6a permit issued by an agency or department of the state.2.7    If the amount awarded to or settled upon multiple claimants exceeds the applicable 2.8limit under clause (d), (e), (f), or (g), or (h), any party may apply to the district court to 2.9apportion to each claimant a proper share of the amount available under the applicable 2.10limit under clause (d), (e), (f), or (g). The share apportioned to each claimant shall be in 2.11the proportion that the ratio of the award or settlement bears to the aggregate awards and 2.12settlements for all claims arising out of the occurrence.2.13    The limitation imposed by this subdivision on individual claimants includes damages 2.14claimed for loss of services or loss of support arising out of the same tort.2.15EFFECTIVE DATE.This section is effective the day following final enactment 2.16and applies to claims arising from acts or omissions that occur on or after that date.2.17    Sec. 2. Minnesota Statutes 2010, section 466.03, subdivision 6e, is amended to read:2.18    Subd. 6e. Parks and recreation areas. Any claim based upon the construction, 2.19operation, or maintenance of any property owned or leased by the municipality that is 2.20intended or permitted to be used as a park, as an open area for recreational purposes, or for 2.21the provision of recreational services, or from any claim based on the clearing of land, 2.22removal of refuse, and creation of trails or paths without artificial surfaces, if the claim 2.23arises from a loss incurred by a user of park and recreation property or services. Nothing 2.24in this subdivision limits the liability of a municipality for conduct that would entitle a 2.25trespasser to damages against a private person, except as provided in subdivision 23.2.26EFFECTIVE DATE.This section is effective the day following final enactment 2.27and applies to causes of action arising on or after that date.2.28    Sec. 3. Minnesota Statutes 2010, section 466.03, is amended by adding a subdivision 2.29to read:2.30    Subd. 23.Recreational use of school property and facilities.(a) Any claim for a 2.31loss or injury arising from the use of school property or a school facility made available 2.32for public recreational activity.2.33(b) Nothing in this subdivision:3.1(1) limits the liability of a school district for conduct that would entitle a trespasser 3.2to damages against a private person; or3.3(2) reduces any existing duty owed by the school district.3.4EFFECTIVE DATE.This section is effective the day following final enactment 3.5and applies to causes of action arising on or after that date.3.6    Sec. 4. Minnesota Statutes 2010, section 466.04, subdivision 1, is amended to read:3.7    Subdivision 1. Limits; punitive damages. (a) Liability of any municipality on any 3.8claim within the scope of sections 466.01 to 466.15 shall not exceed:3.9(1) $300,000 when the claim is one for death by wrongful act or omission and 3.10$300,000 to any claimant in any other case, for claims arising before January 1, 2008;3.11(2) $400,000 when the claim is one for death by wrongful act or omission and 3.12$400,000 to any claimant in any other case, for claims arising on or after January 1, 3.132008, and before July 1, 2009;3.14(3) $500,000 when the claim is one for death by wrongful act or omission and 3.15$500,000 to any claimant in any other case, for claims arising on or after July 1, 2009;3.16(4) $750,000 for any number of claims arising out of a single occurrence, for claims 3.17arising on or after January 1, 1998, and before January 1, 2000;3.18(5) $1,000,000 for any number of claims arising out of a single occurrence, for 3.19claims arising on or after January 1, 2000, and before January 1, 2008;3.20(6) $1,200,000 for any number of claims arising out of a single occurrence, for 3.21claims arising on or after January 1, 2008, and before July 1, 2009;3.22(7) $1,500,000 for any number of claims arising out of a single occurrence, for 3.23claims arising on or after July 1, 2009; or3.24(8) twice the limits provided in clauses (1) to (7) when the claim arises out of the 3.25release or threatened release of a hazardous substance, whether the claim is brought under 3.26sections 115B.01 to 115B.15 or under any other law; or3.27(9) $1,000,000 for any number of claims arising out of a single occurrence, if the 3.28claim involves a nonprofit organization engaged in or administering outdoor recreational 3.29activities funded in whole or in part by a municipality or operating under the authorization 3.30of a permit issued by a municipality.3.31(b) No award for damages on any such claim shall include punitive damages.3.32EFFECTIVE DATE.This section is effective the day following final enactment 3.33and applies to claims arising from acts or omissions that occur on or after that date.4.1    Sec. 5. Minnesota Statutes 2010, section 466.04, subdivision 3, is amended to read:4.2    Subd. 3. Disposition of multiple claims. Where the amount awarded to or settled 4.3upon multiple claimants exceeds the applicable limit under subdivision 1, paragraph 4.4(a), clauses (2) to (4) to (9), any party may apply to any district court to apportion to 4.5each claimant a proper share of the total amount limited by subdivision 1. The share 4.6apportioned each claimant shall be in the proportion that the ratio of the award or 4.7settlement made to each bears to the aggregate awards and settlements for all claims 4.8arising out of the occurrence.4.9EFFECTIVE DATE.This section is effective the day following final enactment.4.10    Sec. 6. Minnesota Statutes 2010, section 491A.01, subdivision 3, is amended to read:4.11    Subd. 3. Jurisdiction; general. (a) Except as provided in subdivisions 4 and 5, the 4.12conciliation court has jurisdiction to hear, conciliate, try, and determine civil claims if the 4.13amount of money or property that is the subject matter of the claim does not exceed: (1) 4.14$7,500; (2) $4,000,$10,000 or $5,000 if the claim involves a consumer credit transaction; 4.15or (3) (2) $15,000, if the claim involves money or personal property subject to forfeiture 4.16under section 
         609.5311, 
         609.5312, 
         609.5314, or 
         609.5318. "Consumer credit transaction" 4.17means a sale of personal property, or a loan arranged to facilitate the purchase of personal 4.18property, in which:4.19(1) credit is granted by a seller or a lender who regularly engages as a seller or 4.20lender in credit transactions of the same kind;4.21(2) the buyer is a natural person;4.22(3) the claimant is the seller or lender in the transaction; and4.23(4) the personal property is purchased primarily for a personal, family, or household 4.24purpose and not for a commercial, agricultural, or business purpose.4.25(b) Except as otherwise provided in this subdivision and subdivisions 5 to 10, the 4.26territorial jurisdiction of conciliation court is coextensive with the county in which the 4.27court is established. The summons in a conciliation court action under subdivisions 6 to 4.2810 may be served anywhere in the state, and the summons in a conciliation court action 4.29under subdivision 7, paragraph (b), may be served outside the state in the manner provided 4.30by law. The court administrator shall serve the summons in a conciliation court action 4.31by first class mail, except that if the amount of money or property that is the subject of 4.32the claim exceeds $2,500, the summons must be served by the plaintiff by certified mail, 4.33and service on nonresident defendants must be made in accordance with applicable law 4.34or rule. Subpoenas to secure the attendance of nonparty witnesses and the production of 4.35documents at trial may be served anywhere within the state in the manner provided by law.5.1When a court administrator is required to summon the defendant by certified mail 5.2under this paragraph, the summons may be made by personal service in the manner 5.3provided in the Rules of Civil Procedure for personal service of a summons of the district 5.4court as an alternative to service by certified mail.5.5EFFECTIVE DATE.This section is effective August 1, 2011, and applies to claims 5.6filed on or after that date.5.7    Sec. 7. [540.19] CLASS ACTIONS; INTERLOCUTORY APPEAL.5.8A court order certifying a class action, refusing to certify a class action, or denying a 5.9motion to decertify a class action is appealable as a matter of right. While an appeal under 5.10this subdivision is pending, all discovery and other proceedings in the district court are 5.11automatically stayed, except that upon the motion of a party the district court may lift the 5.12stay, in whole or in part, for good cause shown.5.13EFFECTIVE DATE.This section is effective July 1, 2011, and applies to orders 5.14issued on or after that date.5.15    Sec. 8. Minnesota Statutes 2010, section 549.09, subdivision 1, is amended to read:5.16    Subdivision 1. When owed; rate. (a) When a judgment or award is for the recovery 5.17of money, including a judgment for the recovery of taxes, interest from the time of 5.18the verdict, award, or report until judgment is finally entered shall be computed by the 5.19court administrator or arbitrator as provided in paragraph (c) and added to the judgment 5.20or award.5.21(b) Except as otherwise provided by contract or allowed by law, preverdict, 5.22preaward, or prereport interest on pecuniary damages shall be computed as provided 5.23in paragraph (c) from the time of the commencement of the action or a demand for 5.24arbitration, or the time of a written notice of claim, whichever occurs first, except as 5.25provided herein. The action must be commenced within two years of a written notice of 5.26claim for interest to begin to accrue from the time of the notice of claim. If either party 5.27serves a written offer of settlement, the other party may serve a written acceptance or a 5.28written counteroffer within 30 days. After that time, interest on the judgment or award 5.29shall be calculated by the judge or arbitrator in the following manner. The prevailing 5.30party shall receive interest on any judgment or award from the time of commencement 5.31of the action or a demand for arbitration, or the time of a written notice of claim, or as 5.32to special damages from the time when special damages were incurred, if later, until the 5.33time of verdict, award, or report only if the amount of its offer is closer to the judgment or 6.1award than the amount of the opposing party's offer. If the amount of the losing party's 6.2offer was closer to the judgment or award than the prevailing party's offer, the prevailing 6.3party shall receive interest only on the amount of the settlement offer or the judgment or 6.4award, whichever is less, and only from the time of commencement of the action or a 6.5demand for arbitration, or the time of a written notice of claim, or as to special damages 6.6from when the special damages were incurred, if later, until the time the settlement offer 6.7was made. Subsequent offers and counteroffers supersede the legal effect of earlier offers 6.8and counteroffers. For the purposes of clause (2), the amount of settlement offer must 6.9be allocated between past and future damages in the same proportion as determined by 6.10the trier of fact. Except as otherwise provided by contract or allowed by law, preverdict, 6.11preaward, or prereport interest shall not be awarded on the following:6.12(1) judgments, awards, or benefits in workers' compensation cases, but not including 6.13third-party actions;6.14(2) judgments or awards for future damages;6.15(3) punitive damages, fines, or other damages that are noncompensatory in nature;6.16(4) judgments or awards not in excess of the amount specified in section 
         491A.01; 6.17and6.18(5) that portion of any verdict, award, or report which is founded upon interest, or 6.19costs, disbursements, attorney fees, or other similar items added by the court or arbitrator.6.20(c)(1) For a judgment or award of $50,000 or less or a judgment or award for or 6.21against the state or a political subdivision of the state, regardless of the amount, The 6.22interest shall be computed as simple interest per annum. The rate of interest shall be based 6.23on the secondary market yield of one year United States Treasury bills, calculated on a 6.24bank discount basis as provided in this section.6.25On or before the 20th day of December of each year the state court administrator 6.26shall determine the rate from the one-year constant maturity treasury yield for the most 6.27recent calendar month, reported on a monthly basis in the latest statistical release of the 6.28board of governors of the Federal Reserve System. This yield, rounded to the nearest one 6.29percent, or four percent, whichever is greater, shall be the annual interest rate during the 6.30succeeding calendar year. The state court administrator shall communicate the interest 6.31rates to the court administrators and sheriffs for use in computing the interest on verdicts 6.32and shall make the interest rates available to arbitrators.6.33This clause applies to any section that references section 549.09 by citation for the 6.34purposes of computing an interest rate on any amount owed to or by the state or a political 6.35subdivision of the state, regardless of the amount.7.1(2) For a judgment or award over $50,000, other than a judgment or award for or 7.2against the state or a political subdivision of the state, the interest rate shall be ten percent 7.3per year until paid.7.4(3) When a judgment creditor, or the judgment creditor's attorney or agent, has 7.5received a payment after entry of judgment, whether the payment is made voluntarily by 7.6or on behalf of the judgment debtor, or is collected by legal process other than execution 7.7levy where a proper return has been filed with the court administrator, the judgment 7.8creditor, or the judgment creditor's attorney, before applying to the court administrator 7.9for an execution shall file with the court administrator an affidavit of partial satisfaction. 7.10The affidavit must state the dates and amounts of payments made upon the judgment after 7.11the most recent affidavit of partial satisfaction filed, if any; the part of each payment that 7.12is applied to taxable disbursements and to accrued interest and to the unpaid principal 7.13balance of the judgment; and the accrued, but the unpaid interest owing, if any, after 7.14application of each payment.7.15(d) This section does not apply to arbitrations between employers and employees 7.16under chapter 179 or 179A. An arbitrator is neither required to nor prohibited from 7.17awarding interest under chapter 179 or under section 
         179A.16 for essential employees.7.18(e) For purposes of this subdivision:7.19(1) "state" includes a department, board, agency, commission, court, or other entity 7.20in the executive, legislative, or judicial branch of the state; and7.21(2) "political subdivision" includes a town, statutory or home rule charter city, 7.22county, school district, or any other political subdivision of the state.7.23(e) This section does not apply to a judgment or award upon which interest is entitled 7.24to be recovered under section 60A.0811.7.25EFFECTIVE DATE.This section is effective August 1, 2011, and applies to 7.26judgments and awards entered on or after that date.7.27    Sec. 9. Minnesota Statutes 2010, section 549.09, subdivision 2, is amended to read:7.28    Subd. 2. Accrual of interest.(a) During each calendar year, interest shall accrue 7.29on the unpaid balance of the judgment or award from the time that it is entered or made 7.30until it is paid, at the annual rate provided in subdivision 1 or paragraph (b). The court 7.31administrator shall compute and add the accrued interest to the total amount to be collected 7.32when the execution is issued and compute the amount of daily interest accruing during the 7.33calendar year. The person authorized by statute to make the levy shall compute and add 7.34interest from the date that the writ of execution was issued to the date of service of the writ 8.1of execution and shall direct the daily interest to be computed and added from the date of 8.2service until any money is collected as a result of the levy.8.3(b) For a judgment or award over $50,000, other than a judgment or award for or 8.4against the state or a political subdivision of the state, the interest rate is ten percent per 8.5year. This paragraph does not apply to a section that references section 549.09 by citation 8.6for the purpose of computing an interest rate on any amount owed to or by the state or a 8.7political subdivision of the state, regardless of the amount.8.8EFFECTIVE DATE.This section is effective August 1, 2011, and applies to 8.9judgments and awards entered on or after that date.8.10    Sec. 10. [549.255] ATTORNEY FEE AWARDS.8.11    Subdivision 1.Reasonable relation of fees to damages.When a statute provides 8.12for the award of attorney fees to a party that has recovered money damages, the court, in 8.13setting the amount of attorney fees, must take into consideration the reasonableness of the 8.14attorney fees sought in relation to the amount of damages awarded to the prevailing party 8.15along with other relevant factors allowed by law.8.16    Subd. 2.Offer of judgment.If an offer of judgment is made by a party under Rule 8.1768 of the Rules of Civil Procedure to a party who claims money damages pursuant, in 8.18whole or in part, to a statute that provides for the award of attorney fees, and the party 8.19claiming attorney fees does not obtain a verdict in excess of the offer, exclusive of attorney 8.20fees, no attorney fees may be awarded for fees incurred after service of the offer of 8.21judgment. The party that rejects an offer of judgment must disclose the attorney fees it 8.22has incurred as of the date of the service of the offer of judgment within the time period 8.23provided by Rule 68 for the acceptance of an offer of judgment.8.24    Subd. 3.Exemption.This section does not apply to actions brought pursuant to 8.25section 325F.71, subdivision 4.8.26EFFECTIVE DATE.This section is effective August 1, 2011, and applies to 8.27actions commenced on or after that date.8.28    Sec. 11. [609.3244] CIVIL LIABILITY.8.29(a) A sex trafficking victim may bring a cause of action against a person who violates 8.30section 609.322. The court may award damages, including punitive damages, reasonable 8.31attorney fees, and other litigation costs reasonably incurred by the victim.8.32(b) The rules of evidence set out in section 611A.83 apply to a cause of action under 8.33this section. The evidentiary protections provided by this paragraph do not apply to any 9.1subsequent prosecution of a violent crime, as defined in section 609.1095, subdivision 1, 9.2paragraph (d).9.3EFFECTIVE DATE.This section is effective August 1, 2011, and applies to causes 9.4of action commenced on or after that date.