SF 617

as introduced - 94th Legislature (2025 - 2026) Posted on 01/28/2025 09:48am

A bill for an act
relating to civil actions; awarding fees and expenses to a prevailing party if the
municipality's position was not substantially justified; proposing coding for new
law in Minnesota Statutes, chapter 465.

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

Section 1.

new text begin [465.131] FEES AND EXPENSES; CIVIL ACTIONS INVOLVING A
MUNICIPALITY.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Expenses" has the meaning given in section 15.471, subdivision 4.
new text end

new text begin (c) "Fees" means the reasonable attorney fees or reasonable fees charged by a person
not an attorney who is authorized by law to represent the party and may include reasonable
charges by the party or the party's employee or agent. The amount of fees must be based
upon prevailing market rates for the kind and quality of the services furnished, subject to
the limitation that an expert witness may not be compensated at a rate greater than the
highest rate of compensation for expert witnesses paid by the municipality.
new text end

new text begin (d) "Municipality" has the meaning given in section 466.01, subdivision 1.
new text end

new text begin (e) "Substantially justified" means that the municipality's position had a reasonable basis
in law and fact, based on the totality of the circumstances before and during the litigation.
new text end

new text begin Subd. 2. new text end

new text begin Award of fees and expenses. new text end

new text begin (a) Unless special circumstances make an award
unjust, a court shall award fees and other expenses to a prevailing party, other than a
municipality, in a civil action brought against or by the municipality if the prevailing party
shows that the position of the municipality was not substantially justified.
new text end

new text begin (b) The court may reduce the amount to be awarded under this section, or deny an award,
to the extent that the prevailing party during the proceedings engaged in conduct that unduly
and unreasonably protracted the final resolution of the matter in controversy.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin A party seeking an award of fees and other expenses shall, within
30 days of final judgment in the action, submit to the court an application of fees and other
expenses which shows that the party is a prevailing party and is eligible to receive an award,
and the amount sought, including an itemized statement from any attorney or expert witness
representing or appearing on behalf of the party stating the actual time expended and the
rate at which fees and other expenses were computed. The party shall also allege that the
position of the municipality was not substantially justified.
new text end

new text begin Subd. 4. new text end

new text begin Construction with other law; limitations. new text end

new text begin (a) This section does not preclude
a party from recovering costs, disbursements, fees, and expenses under other applicable
law.
new text end

new text begin (b) This section does not apply to a tort action.
new text end