HF 1547

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 action; regulating actions involving 
  1.3             fault; regulating actions involving certain insurance 
  1.4             practices; amending Minnesota Statutes 2002, sections 
  1.5             604.01, subdivision 1; 604.02, subdivision 1; 
  1.6             proposing coding for new law in Minnesota Statutes, 
  1.7             chapter 604. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 604.01, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [SCOPE OF APPLICATION.] Contributory fault 
  1.12  does not bar recovery in an action by any person or the person's 
  1.13  legal representative to recover damages for fault resulting in 
  1.14  death, in injury to person or property, or in economic loss, if 
  1.15  the contributory fault was not greater than the aggregate fault 
  1.16  of the person persons against whom recovery is sought, but any 
  1.17  damages allowed must be diminished in proportion to the amount 
  1.18  of fault attributable to the person recovering.  The court may, 
  1.19  and when requested by any party shall, direct the jury to find 
  1.20  separate special verdicts determining the amount of damages and 
  1.21  the percentage of fault attributable to each party and the court 
  1.22  shall then reduce the amount of damages in proportion to the 
  1.23  amount of fault attributable to the person recovering. 
  1.24     Sec. 2.  Minnesota Statutes 2002, section 604.02, 
  1.25  subdivision 1, is amended to read: 
  1.26     Subdivision 1.  [JOINT LIABILITY.] When two or more persons 
  2.1   are jointly liable, contributions to awards shall be in 
  2.2   proportion to the percentage of fault attributable to each, 
  2.3   except that each is the following persons are jointly and 
  2.4   severally liable for the whole award.  Except in cases where: 
  2.5      (1) a person whose fault is equal to or greater than 50 
  2.6   percent; 
  2.7      (2) two or more persons acting illegally or within a 
  2.8   conspiracy that results in injury; 
  2.9      (3) two or more persons acting within a joint venture or 
  2.10  enterprise or acting within a concerted plan or scheme that 
  2.11  results in injury; 
  2.12     (4) a person who commits an intentional tort; or 
  2.13     (5) a person whose liability arises under chapters 18B - 
  2.14  pesticide control, 115 - water pollution control, 115A - waste 
  2.15  management, 115B - environmental response and liability, 115C - 
  2.16  leaking underground storage tanks, and 299J - pipeline safety, 
  2.17  public nuisance law for damage to the environment or the public 
  2.18  health, any other environmental or public health law, or any 
  2.19  environmental or public health ordinance or program of a 
  2.20  municipality as defined in section 466.01, a person whose fault 
  2.21  is 15 percent or less is liable for a percentage of the whole 
  2.22  award no greater than four times the percentage of fault, 
  2.23  including any amount reallocated to that person under 
  2.24  subdivision 2. 
  2.25     If the state or a municipality as defined in section 466.01 
  2.26  is jointly liable, and its fault is less than 35 percent, it is 
  2.27  jointly and severally liable for a percentage of the whole award 
  2.28  no greater than twice the amount of fault, including any amount 
  2.29  reallocated to the state or municipality under subdivision 2. 
  2.30     Sec. 3.  [604.17] [BAD FAITH INSURANCE PRACTICES.] 
  2.31     Subdivision 1.  [PROHIBITED CONDUCT.] (a) An insurer shall 
  2.32  not act in bad faith in connection with any matter involving a 
  2.33  claim under an insurance policy. 
  2.34     (b) Insurer bad faith includes insurer delay or denial of 
  2.35  benefits offered or paid without an objectively reasonable basis 
  2.36  for its offer, delay, or denial.  An insurer also acts in bad 
  3.1   faith if the insurer engages in any fraud, false pretense, false 
  3.2   promise, misrepresentation, misleading statement, or deceptive 
  3.3   practice that others rely on in connection with any matter 
  3.4   involving a claim under an insurance policy.  
  3.5      (c) For purposes of this section: 
  3.6      (1) "insurance policy" means an insurance policy or 
  3.7   contract issued, executed, renewed, maintained, or delivered in 
  3.8   this state, other than a workers' compensation insurance policy 
  3.9   or contract; and 
  3.10     (2) "insurer" means an individual, corporation, 
  3.11  association, partnership, or other legal entity that issues, 
  3.12  executes, renews, maintains, or delivers an insurance policy in 
  3.13  this state. 
  3.14     Subd. 2.  [PENALTIES AND REMEDIES.] A person violating 
  3.15  subdivision 1 is acting against the public interest and is 
  3.16  subject to the penalties and remedies, including a private right 
  3.17  of action, under section 8.31. 
  3.18     Sec. 4.  [APPLICATION.] 
  3.19     Section 2 applies to claims arising from events that occur 
  3.20  on or after August 1, 2003.  Section 3 is effective August 1, 
  3.21  2003, and applies to causes of action commenced on or after that 
  3.22  date.