SF 5338

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/09/2024 09:14am

A bill for an act
relating to civil law; providing an attorney adviser or guardian ad litem in settlement
agreements for cases where a party has a brain injury; requiring a study of the
2022 structure settlement laws and a report to the legislature; proposing coding
for new law in Minnesota Statutes, chapter 549.

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

Section 1.

new text begin [549.275] ATTORNEY REVIEW FOR INJURED PARTIES;
SETTLEMENT AGREEMENTS.
new text end

new text begin (a) The court shall appoint an attorney adviser or guardian ad litem in any case involving
a settlement agreement between parties to a case if it appears to the court that one of the
parties may suffer from a brain injury resulting in a mental or cognitive injury. Alternatively,
an attorney for a party who has a medical diagnosis of a brain injury shall file a motion for
the appointment of an attorney adviser or guardian ad litem prior to a settlement agreement
if the attorney is aware that their client has a brain injury that has caused a mental or cognitive
impairment. Filings related to the mental or cognitive impairment and brain injury shall be
filed in a confidential manner.
new text end

new text begin (b) The appointed attorney adviser or guardian ad litem shall make an independent
assessment and advise the court whether the proposed settlement is in the best interest of
the party whom they have been assigned to assist, taking into consideration the party's
dependents and medical history, if any. The attorney adviser or guardian ad litem may
consult with a certified public accountant, actuary, or other licensed professional adviser,
if necessary. Costs and reasonable fees for the appointed attorney adviser or guardian ad
litem may be distributed through the settlement or assigned by the court, and must not
exceed $3,000. The fee may be deposited with and disbursed to the attorney adviser or
guardian ad litem by the court.
new text end

new text begin (c) The appointed attorney adviser or guardian ad litem shall consider the following
factors when making a report to the court on the best interest of the party they are assigned
to assist:
new text end

new text begin (1) the reasonable preference of the party in light of the party's age, mental capacity,
maturity, and understanding of the settlement agreement;
new text end

new text begin (2) if the settlement seems reasonable given the facts of the case for a similarly situated
party;
new text end

new text begin (3) if the cases involves injuries to the party, whether or not the settlement covers past
or future medical expenses; and
new text end

new text begin (4) the impact of the settlement on the party's ability to support themselves, their spouse,
or dependents.
new text end

new text begin (d) The attorney appointed by the court must report to the court the attorney's assessment
and advice in a manner directed by the court in the appointing order.
new text end

Sec. 2. new text begin STUDY ON STRUCTURED SETTLEMENT TRANSFERS.
new text end

new text begin (a) The attorney general is directed to complete a study of the impact of the updates to
the structured settlement law in 2022. The chief justice of the supreme court is directed to
assist the attorney general in completing the study. The study shall include reviewing and
compiling the information on cases under the new laws, including:
new text end

new text begin (1) when a discretionary appointment was made under section 549.405, subdivision 1;
new text end

new text begin (2) when a mandatory appointment was made under section 549.405, subdivision 2;
new text end

new text begin (3) how many cases involved minors;
new text end

new text begin (4) how many cases involved parties with a mental or cognitive impairment;
new text end

new text begin (5) how many cases had a motion made under section 549.405, subdivision 3;
new text end

new text begin (6) how many reports were filed under section 549.405, subdivision 4; and
new text end

new text begin (7) how many settlements were approved by the court and how many were denied.
new text end

new text begin (b) The attorney general may review and include other data that helps to determine the
impact of changes to the structured settlement laws and other legislative proposals that
would assist payees in structured settlement transfers. The attorney general shall provide a
report on the study to the chair and minority lead for the committees with jurisdiction over
civil law in the house of representatives and the senate by January 15, 2025.
new text end