SF 2465

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 class actions; regulating class 
  1.3             actions against insurance entities; requiring a stay 
  1.4             if Commerce Department jurisdiction is involved; 
  1.5             proposing coding for new law in Minnesota Statutes, 
  1.6             chapter 540. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [540.19] [CLASS ACTIONS AGAINST INSURANCE 
  1.9   ENTITIES; DISMISSAL OR ABATEMENT IF COMMERCE DEPARTMENT 
  1.10  JURISDICTION INVOLVED.] 
  1.11     Subdivision 1.  [REQUIREMENT.] (a) A court shall stay a 
  1.12  class action filed against an insurance entity unless the court 
  1.13  determines that: 
  1.14     (1) the interpretation, application, or violation of an 
  1.15  insurance-related statute or rule involves only questions of 
  1.16  law; and 
  1.17     (2) the Department of Commerce may not make any findings of 
  1.18  fact or conclusions of law or issue any orders that would aid 
  1.19  the court in resolving the action. 
  1.20     (b) A court may stay a class action filed against an 
  1.21  insurance entity if the court determines that the Department of 
  1.22  Commerce may order in a contested case all or part of the relief 
  1.23  the claimant seeks.  The court shall specify in its stay order 
  1.24  the portion of the statute on which the court bases its order. 
  1.25     (c) A court that stays a class action under this section: 
  1.26     (1) shall refer specific issues or claims within the 
  2.1   Commerce Department's jurisdiction to the Department of Commerce 
  2.2   for action; and 
  2.3      (2) may direct the Department of Commerce to report to the 
  2.4   court periodically concerning the disposition of the matters 
  2.5   referred to the agency. 
  2.6      (d) The statute of limitations for a stayed action under 
  2.7   this section is tolled for the period during which the claimant 
  2.8   seeks an administrative remedy. 
  2.9      Subd. 2.  [PERIOD OF STAY.] The court shall provide that 
  2.10  the period of the stay is at least six months from the date the 
  2.11  court enters the stay order, or such other reasonable time as 
  2.12  the court may determine. 
  2.13     Subd. 3.  [ADEQUATE RELIEF.] Relief awarded to a claimant 
  2.14  may be adequate even if the relief does not include exemplary 
  2.15  damages, multiple damages, attorney fees, or costs of court. 
  2.16     Subd. 4.  [APPLICABILITY.] This section applies only to a 
  2.17  civil action filed against an insurance entity in which: 
  2.18     (1) a claimant seeks recovery of damages on behalf of a 
  2.19  class of claimants; and 
  2.20     (2) the interpretation, application, or violation of an 
  2.21  insurance-related statute or rule is involved for at least one 
  2.22  defendant. 
  2.23     Subd. 5.  [DEFINITION.] For purposes of this section, an 
  2.24  insurance entity is any entity required to be licensed under the 
  2.25  insurance laws of this state.