HF 3686

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to the military; providing for a stay of certain proceedings against the
businesses of National Guard and reserve members who have been mobilized
into active military service; proposing coding for new law in Minnesota Statutes,
chapter 192.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [192.056] PROTECTION OF RESERVIST-OWNED BUSINESS
DURING ACTIVE SERVICE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this
section.
new text end

new text begin (b) "Active service" has the meaning given in section 190.05, subdivision 5.
new text end

new text begin (c) "Business" means a business wholly owned by a qualified service member, or
jointly by the member and the member's spouse, irrespective of whether the business
is a sole proprietorship, corporation, limited liability company, partnership, limited
partnership, or other type of business entity.
new text end

new text begin (d) "Qualified service member" means a Minnesota resident who is serving
honorably as a member of the Minnesota National Guard or any other military reserve
unit of the United States armed forces who has been ordered into active service for a
period of 60 days or longer.
new text end

new text begin Subd. 2. new text end

new text begin Protection provided. new text end

new text begin (a) Notwithstanding any other law or rule to the
contrary, the business of a qualified service member may be exempted from civil court
proceedings for part or all of the period of the member's active military service and for up
to 60 days thereafter, as provided in this section.
new text end

new text begin (b) If the business of a qualified service member is a defendant in a civil action, the
court may, on its own motion, grant a stay in the proceedings for a minimum of 60 days.
The court, on its own motion, may renew the stay as the court considers appropriate. If the
qualified service member petitions the court in any manner for a stay, the court must grant
a stay for a minimum of 60 days, provided that:
new text end

new text begin (1) the service member submits to the court a letter or other communication setting
forth facts stating the manner in which current military duty requirements materially affect
the service member's ability to appear or otherwise participate in the proceedings, and
stating a date when the service member will be available to appear or otherwise participate
in the proceedings; and
new text end

new text begin (2) the service member submits a letter or other communication from the service
member's commanding officer stating that the service member's current military duty
prevents appearance and that military leave is not authorized for the service member
at the time of the letter.
new text end

new text begin (c) A service member's communication with the court requesting a stay does not
constitute an appearance for jurisdictional purposes and does not constitute a waiver of
any substantive or procedural defense, including a defense relating to lack of personal
jurisdiction.
new text end

new text begin (d) A qualified service member who is granted a stay in the action or proceedings
against the member's business may in any manner request from the court an additional
stay, which the court may grant if the service member can show to the satisfaction of
the court that the member's military requirements affect the member's ability to appear.
However, the court is not obligated to grant the additional stay. If the court refuses to
grant an additional stay, the court must provide the service member with information
enabling the service member to acquire qualified legal counsel, at the service member's
discretion, for defending the action.
new text end

new text begin (e) If a default judgment is entered in a civil action against the business of a qualified
service member during the service member's period of active military service, or within 60
days following termination of or release from the active military service, the court entering
the judgment must, upon application by or on behalf of the service member, reopen the
judgment for the purpose of allowing the member to defend the action if it appears that:
new text end

new text begin (1) the service member was materially affected by reason of that military service in
making a defense to the action; and
new text end

new text begin (2) the service member has a meritorious or legal defense to the action or some
part of it.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008, and applies to civil
court actions pending or initiated on or after that date.
new text end