Key: (1) language to be deleted (2) new language
Laws of Minnesota 1993
CHAPTER 321-S.F.No. 532
An act relating to courts; conciliation court;
adopting one body of law to govern conciliation
courts; increasing the jurisdictional limit; amending
Minnesota Statutes 1992, sections 481.02, subdivision
3; and 549.09, subdivision 1; proposing coding for new
law in Minnesota Statutes, chapter 550; proposing
coding for new law as Minnesota Statutes, chapter
491A; repealing Minnesota Statutes 1992, sections
487.30; 488A.12; 488A.13; 488A.14; 488A.15; 488A.16;
488A.17; 488A.29; 488A.30; 488A.31; 488A.32; 488A.33;
and 488A.34; and Laws 1992, chapter 591, section 21.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1992, section 481.02,
subdivision 3, is amended to read:
Subd. 3. [PERMITTED ACTIONS.] The provisions of this
section shall not prohibit:
(1) any person from drawing, without charge, any document
to which the person, an employer of the person, a firm of which
the person is a member, or a corporation whose officer or
employee the person is, is a party, except another's will or
testamentary disposition or instrument of trust serving purposes
similar to those of a will;
(2) a person from drawing a will for another in an
emergency if the imminence of death leaves insufficient time to
have it drawn and its execution supervised by a licensed
attorney-at-law;
(3) any insurance company from causing to be defended, or
from offering to cause to be defended through lawyers of its
selection, the insureds in policies issued or to be issued by
it, in accordance with the terms of the policies;
(4) a licensed attorney-at-law from acting for several
common-carrier corporations or any of its subsidiaries pursuant
to arrangement between the corporations;
(5) any bona fide labor organization from giving legal
advice to its members in matters arising out of their
employment;
(6) any person from conferring or cooperating with a
licensed attorney-at-law of another in preparing any legal
document, if the attorney is not, directly or indirectly, in the
employ of the person or of any person, firm, or corporation
represented by the person;
(7) any licensed attorney-at-law of Minnesota, who is an
officer or employee of a corporation, from drawing, for or
without compensation, any document to which the corporation is a
party or in which it is interested personally or in a
representative capacity, except wills or testamentary
dispositions or instruments of trust serving purposes similar to
those of a will, but any charge made for the legal work
connected with preparing and drawing the document shall not
exceed the amount paid to and received and retained by the
attorney, and the attorney shall not, directly or indirectly,
rebate the fee to or divide the fee with the corporation;
(8) any person or corporation from drawing, for or without
a fee, farm or house leases, notes, mortgages, chattel
mortgages, bills of sale, deeds, assignments, satisfactions, or
any other conveyances except testamentary dispositions and
instruments of trust;
(9) a licensed attorney-at-law of Minnesota from rendering
to a corporation legal services to itself at the expense of one
or more of its bona fide principal stockholders by whom the
attorney is employed and by whom no compensation is, directly or
indirectly, received for the services;
(10) any person or corporation engaged in the business of
making collections from engaging or turning over to an
attorney-at-law for the purpose of instituting and conducting
suit or making proof of claim of a creditor in any case in which
the attorney-at-law receives the entire compensation for the
work;
(11) any regularly established farm journal or newspaper,
devoted to general news, from publishing a department of legal
questions and answers to them, made by a licensed
attorney-at-law, if no answer is accompanied or at any time
preceded or followed by any charge for it, any disclosure of any
name of the maker of any answer, any recommendation of or
reference to any one to furnish legal advice or services, or by
any legal advice or service for the periodical or any one
connected with it or suggested by it, directly or indirectly;
(12) any authorized management agent of an owner of rental
property used for residential purposes, whether the management
agent is a natural person, corporation, partnership, limited
partnership, or any other business entity, from commencing,
maintaining, conducting, or defending in its own behalf any
action in any court in this state to recover or retain
possession of the property, except that the provision of this
clause does not authorize a person who is not a licensed
attorney-at-law to conduct a jury trial or to appear before a
district court or the court of appeals or supreme court pursuant
to an appeal;
(13) any person from commencing, maintaining, conducting,
or defending on behalf of the plaintiff or defendant any action
in any court of this state pursuant to the provisions of section
566.175 or sections 566.18 to 566.35 or from commencing,
maintaining, conducting, or defending on behalf of the plaintiff
or defendant any action in any court of this state for the
recovery of rental property used for residential purposes
pursuant to the provisions of section 566.02 or 566.03,
subdivision 1, except that the provision of this clause does not
authorize a person who is not a licensed attorney-at-law to
conduct a jury trial or to appear before a district court or the
court of appeals or supreme court pursuant to an appeal, and
provided that, except for a nonprofit corporation, a person who
is not a licensed attorney-at-law shall not charge or collect a
separate fee for services rendered pursuant to this clause;
(14) the delivery of legal services by a specialized legal
assistant in accordance with a specialty license issued by the
supreme court before July 1, 1995;
(15) the sole shareholder of a corporation from appearing
on behalf of the corporation in court; or
(16) an officer, shareholder, director manager, partner, or
employee from appearing on behalf of a corporation, limited
liability company, partnership, sole proprietorship, or
association in conciliation court or in a district court action
removed from conciliation court, in accordance with
section 487.30, subdivision 4a, or in district court in an
action that was removed from conciliation court 3, subdivision 4.
Sec. 2. [491A.01] [ESTABLISHMENT; POWERS; JURISDICTION.]
Subdivision 1. [ESTABLISHMENT.] The district court in each
county shall establish a conciliation court division with the
jurisdiction and powers set forth in this chapter.
Subd. 2. [POWERS; ISSUANCE OF PROCESS.] The conciliation
court has all powers, and may issue process as necessary or
proper to carry out the purposes of this chapter. No writ of
execution or garnishment summons may be issued out of
conciliation court.
Subd. 3. [JURISDICTION; GENERAL.] (a) Except as provided
in subdivisions 4 and 5, the conciliation court has jurisdiction
to hear, conciliate, try, and determine civil claims if the
amount of money or property that is the subject matter of the
claim does not exceed $6,000, or, on and after July 1, 1994,
$7,500 or $4,000 if the claim involves a consumer credit
transaction. "Consumer credit transaction" means a sale of
personal property, or a loan arranged to facilitate the purchase
of personal property, in which:
(1) credit is granted by a seller or a lender who regularly
engages as a seller or lender in credit transactions of the same
kind;
(2) the buyer is a natural person;
(3) the claimant is the seller or lender in the
transaction; and
(4) the personal property is purchased primarily for a
personal, family, or household purpose and not for a commercial,
agricultural, or business purpose.
(b) Except as otherwise provided in this subdivision and
subdivisions 5 to 10, the territorial jurisdiction of
conciliation court is coextensive with the county in which the
court is established. The summons in a conciliation court
action under subdivisions 6 to 10 may be served anywhere in the
state, and the summons in a conciliation court action under
subdivision 7, paragraph (b), may be served outside the state in
the manner provided by law. The court administrator shall serve
the summons in a conciliation court action by first class mail,
except that if the amount of money or property that is the
subject of the claim exceeds $2,500, the summons must be served
by the plaintiff by certified mail, and service on nonresident
defendants must be made in accordance with applicable law or
rule. Subpoenas to secure the attendance of nonparty witnesses
and the production of documents at trial may be served anywhere
within the state in the manner provided by law.
When a court administrator is required to summon the
defendant by certified mail under this paragraph, the summons
may be made by personal service in the manner provided in the
rules of civil procedure for personal service of a summons of
the district court as an alternative to service by certified
mail.
Subd. 4. [JURISDICTION; EXCLUSIONS.] The conciliation
court does not have jurisdiction over the following actions:
(1) involving title to real estate, including actions to
determine boundary lines;
(2) involving claims of defamation by libel or slander;
(3) for specific performance, except to the extent
authorized in subdivision 5;
(4) brought or defended on behalf of a class;
(5) requesting or involving prejudgment remedies;
(6) involving injunctive relief, except to the extent
authorized in subdivision 5;
(7) pursuant to chapters 256, 257, 259, 260, 518, 518A,
518B, and 518C, except for actions involving debts owed to state
agencies or political subdivisions that arise under those
chapters;
(8) pursuant to chapters 524 and 525;
(9) where jurisdiction is vested exclusively in another
court or division of district court;
(10) for unlawful detainer; and
(11) involving medical malpractice.
Subd. 5. [JURISDICTION; PERSONAL PROPERTY.] If the
controversy concerns the ownership or possession of personal
property the value of which does not exceed the jurisdictional
limit under subdivision 3, the conciliation court has
jurisdiction to determine the ownership and possession of the
property and direct any party to deliver the property to another
party. Notwithstanding any other law to the contrary, once the
judgment of the court directing return of the property becomes
final, it is enforceable by the sheriff of the county in which
the property is located without further legal process. The
sheriff is authorized to effect repossession of the property
according to law, including, but not limited to: (1) entry upon
the premises for the purposes of demanding the property and
ascertaining whether the property is present and taking
possession of it; and (2) causing the building or enclosure
where the property is located to be broken open and the property
taken out of the building and if necessary to that end, the
sheriff may call the power of the county to the sheriff's aid.
If the party against whom the judgment is directed is not
physically present at the time of entry by the sheriff, then a
copy of the judgment must be served upon any person in
possession of the property or if no person is present, a copy of
the judgment must be left on the premises. After taking
possession of the property, the sheriff shall turn the property
over to the prevailing party.
Subd. 6. [JURISDICTION; STUDENT LOANS.] The conciliation
court also has jurisdiction to determine a civil action
commenced by a plaintiff educational institution, including but
not limited to, a state university or community college, with
administrative offices in the county in which the conciliation
court is located, to recover the amount of a student loan or
loans even though the defendant or defendants are not residents
of the county under the following conditions:
(1) the student loan or loans were originally awarded in
the county in which the conciliation court is located;
(2) notice that payment on the loan is overdue has
previously been sent by first class mail to the borrower to the
last known address reported by the borrower to the educational
institution; and
(3) the notice states that the educational institution may
commence a conciliation court action in the county where the
loan was awarded to recover the amount of the loan.
Subd. 7. [JURISDICTION; FOREIGN DEFENDANTS.] (a) If a
foreign corporation is subject by law to service of process in
this state or is subject to service of process outside this
state under section 543.19, a conciliation court action may be
commenced against the foreign corporation:
(1) in the county where the corporation's registered agent
is located;
(2) in the county where the cause of action arose, if the
corporation has a place of business in that county either at the
time the cause of action arose or at the time the action was
commenced; or
(3) in the county in which the plaintiff resides, if the
corporation does not appoint or maintain a registered agent in
this state, withdraws from the state, or the certificate of
authority of the corporation is canceled or revoked.
(b) If a nonresident other than a foreign corporation is
subject to service of process outside this state under section
543.19, a conciliation court action may be commenced against the
nonresident in the county in which the plaintiff resides.
Subd. 8. [JURISDICTION; MULTIPLE DEFENDANTS.] The
conciliation court also has jurisdiction to determine a civil
action commenced against two or more defendants in the county in
which one or more of the defendants resides. Counterclaims may
be commenced in the county where the original action was
commenced.
Subd. 9. [JURISDICTION; RENTAL PROPERTY.] The conciliation
court also has jurisdiction to determine an action commenced
under section 504.20 for the recovery of a deposit on rental
property, or under section 504.245, 504.255, or 504.26, in the
county in which the rental property is located.
Subd. 10. [JURISDICTION; DISHONORED CHECKS.] The
conciliation court also has jurisdiction to determine a civil
action commenced by a plaintiff, resident of the county, to
recover the amount of a dishonored check issued in the county,
even though the defendant or defendants are not residents of the
county, if the notice of nonpayment or dishonor described in
section 609.535, subdivision 3, is sent to the maker or drawer
as specified in that section and the notice states that the
payee or holder of the check may commence a conciliation court
action in the county where the dishonored check was issued to
recover the amount of the check. This subdivision does not
apply to a check that has been dishonored by stop payment order.
Sec. 3. [491A.02] [PROCEDURE.]
Subdivision 1. [PROCEDURE; RULES; FORMS.] The
determination of claims in conciliation court must be without
jury trial and by a simple and informal procedure. Conciliation
court proceedings must not be reported. By July 1, 1993, the
supreme court shall promulgate rules governing pleading,
practice, and procedure for conciliation courts, and shall
promulgate uniform claim and counterclaim forms. The claim and
summons must include a conspicuous notice in at least 10-point
bold type regarding the consequences of a failure to appear at a
conciliation court hearing. Each conciliation court shall
accept a uniform claim or counterclaim that has been properly
completed and forwarded to the court together with the entire
filing fee, if any.
Subd. 2. [ASSISTANCE TO LITIGANTS.] Under the supervision
of the conciliation court judges, the court administrator shall
explain to litigants the procedure and functions of the
conciliation court and shall on request assist them in filling
out all forms and pleading necessary for the presentation of
their claims or counterclaims to the court. The uniform claim
and counterclaim forms must be accepted by any court
administrator and shall on request be forwarded together with
the entire filing fee, if any, to the court administrator of the
appropriate conciliation court. The court administrator shall
on request assist judgment creditors and debtors in the
preparation of the forms necessary to obtain satisfaction of a
final judgment. The performance of duties prescribed in this
subdivision do not constitute the practice of law for purposes
of section 481.02, subdivision 8.
Subd. 3. [FEES.] The court administrator shall charge and
collect the fee established pursuant to section 357.022,
together with applicable law library fees established pursuant
to law, from a plaintiff and from a defendant when the first
paper for that party is filed in any conciliation court action.
The rules promulgated by the supreme court shall provide for
commencement of an action without payment of fees when a
litigant who is a natural person claims an inability to pay the
fees, provided that if the litigant prevails on a claim or
counterclaim, the fees must be paid to the administrator out of
any money recovered by the litigant.
Subd. 4. [REPRESENTATION.] A corporation, partnership,
limited liability company, sole proprietorship, or association
may be represented in conciliation court by an officer, manager,
or partner or may appoint a natural person who is an employee to
appear on its behalf or settle a claim in conciliation court.
This representation does not constitute the practice of law for
purposes of section 481.02, subdivision 8. In the case of an
officer or employee, an authorized power of attorney, corporate
authorization resolution, corporate bylaw, or other evidence of
authority acceptable to the court must be filed with the claim
or presented at the hearing. This subdivision also applies to
appearances in district court by a corporation or limited
liability company with five or fewer shareholders or members if
the action was removed from conciliation court.
Subd. 5. [INSTALLMENT PAYMENTS.] A judgment ordered may
provide for satisfaction by payments in installments in amounts
and at such times, not exceeding one year for the last
installment, as the judge determines to be just and reasonable.
If any installment is not paid when due, the entire balance of
the judgment order becomes immediately due and payable.
Subd. 6. [APPEAL BY REMOVAL TO DISTRICT COURT; TRIAL DE
NOVO; NOTICE OF COSTS.] The rules promulgated by the supreme
court must provide for a right of appeal from the decision of
the conciliation court by removal to the district court for a
trial de novo. The notice of order for judgment must contain a
statement that if the removing party does not prevail in
district court as provided in subdivision 7, the opposing party
may be awarded an additional $50 as costs.
Subd. 7. [COSTS IN DISTRICT COURT.] (a) For the purposes
of this subdivision, "removing party" means the first party who
serves or files a demand for removal. "Opposing party" means
any party as to whom the removing party seeks a reversal in
whole or in part.
(b) If the removing party prevails in district court, the
removing party may recover costs from the opposing party as
though the action were commenced in district court. If the
removing party does not prevail, the court shall order an
additional $50 to be paid to the opposing party as costs. If
the removing party is eligible to proceed under section 563.01,
the additional $50 costs may be waived if the court, in its
discretion, determines that a hardship exists and that the case
was removed from conciliation court in good faith.
(c) For purposes of this section, the removing party
prevails in district court if:
(1) the removing party recovers at least $500 or 50 percent
of the amount of value of property that the removing party
requested on removal, whichever is less, when the removing party
was denied any recovery in conciliation court;
(2) the opposing party does not recover any amount or any
property from the removing party in district court when the
opposing party recovered some amount or some property in
conciliation court;
(3) the removing party recovers an amount or value of
property in district court that exceeds the amount or value of
property that the removing party recovered in conciliation court
by at least $500 or 50 percent, whichever is less; or
(4) the amount or value of property that the opposing party
recovers from the removing party in district court is reduced
from the amount or value of property that the opposing party
recovered in conciliation court by at least $500 or 50 percent,
whichever is less.
(d) Costs or disbursements in conciliation or district
court must not be considered in determining whether there was a
recovery by either party in either court or in determining the
difference in recovery under this section.
Subd. 8. [APPEAL FROM DISTRICT COURT.] Decisions of the
district court on removal from a conciliation court
determination on the merits may be appealed to the court of
appeals as in other civil actions.
Subd. 9. [JUDGMENT DEBTOR DISCLOSURE.] Unless the parties
have otherwise agreed, if a conciliation court judgment or a
judgment of district court on removal from conciliation court
has been docketed in district court for at least 30 days, and
the judgment is not satisfied, the district court in the county
in which the judgment originated shall, upon request of the
judgment creditor, order the judgment debtor to mail to the
judgment creditor information as to the nature, amount,
identity, and locations of all the debtor's assets, liabilities,
and personal earning. The information must be provided on a
form prescribed by the supreme court, and the information shall
be sufficiently detailed to enable the judgment creditor to
obtain satisfaction of the judgment by way of execution on
nonexempt assets and earnings of the judgment debtor. The order
must contain a notice that failure to complete the form and mail
it to the judgment creditor within ten days after service of the
order may result in a citation for civil contempt of court.
Cash bail posted as a result of being cited for civil contempt
of court order under this section may be ordered payable to the
creditor to satisfy the judgment, either partially or fully.
Sec. 4. [491A.03] [JUDGES; ADMINISTRATOR; REPORTER;
SUPPLIES.]
Subdivision 1. [JUDGES; REFEREES.] The judges of district
court shall serve as judges of conciliation court. In the
second and fourth judicial districts, a majority of the judges
of the district may appoint one or more suitable persons to act
as referees in conciliation court; a majority of the judges of
the district shall establish qualification for the office,
specify the duties and length of service of referees, and fix
their compensation not to exceed an amount per day determined by
the chief judge of the judicial district.
Subd. 2. [ADMINISTRATOR.] The court administrator of the
district court shall serve as the court administrator of
conciliation court. The court administrator shall account for
and pay over to the appropriate official all fees received by
the court administrator.
Subd. 3. [COURT REPORTER.] Each court reporter appointed
by a judge of district court shall, at the request of the judge,
assist that judge in performing the judge's duties as
conciliation court judge. A court reporter may not take
official notes of any trial or proceedings in conciliation court.
Subd. 4. [QUARTERS; SUPPLIES.] The county in which the
court is established shall provide suitable quarters for the
court. Except as otherwise provided by law, all expenses for
necessary blanks, stationery, books, furniture, furnishings, and
other supplies for the use of the court and the officers of the
court shall be included in the budget for the court
administrator's office provided by the county board pursuant to
section 485.018, subdivision 6.
Sec. 5. Minnesota Statutes 1992, section 549.09,
subdivision 1, is amended to read:
Subdivision 1. [WHEN OWED; RATE.] (a) When a judgment or
award is for the recovery of money, including a judgment for the
recovery of taxes, interest from the time of the verdict, award,
or report until judgment is finally entered shall be computed by
the court administrator or arbitrator as provided in clause (c)
and added to the judgment or award.
(b) Except as otherwise provided by contract or allowed by
law, preverdict, preaward, or prereport interest on pecuniary
damages shall be computed as provided in clause (c) from the
time of the commencement of the action or a demand for
arbitration, or the time of a written notice of claim, whichever
occurs first, except as provided herein. The action must be
commenced within two years of a written notice of claim for
interest to begin to accrue from the time of the notice of
claim. If either party serves a written offer of settlement,
the other party may serve a written acceptance or a written
counteroffer within 30 days. After that time, interest on the
judgment or award shall be calculated by the judge or arbitrator
in the following manner. The prevailing party shall receive
interest on any judgment or award from the time of commencement
of the action or a demand for arbitration, or the time of a
written notice of claim, or as to special damages from the time
when special damages were incurred, if later, until the time of
verdict, award, or report only if the amount of its offer is
closer to the judgment or award than the amount of the opposing
party's offer. If the amount of the losing party's offer was
closer to the judgment or award than the prevailing party's
offer, the prevailing party shall receive interest only on the
amount of the settlement offer or the judgment or award,
whichever is less, and only from the time of commencement of the
action or a demand for arbitration, or the time of a written
notice of claim, or as to special damages from when the special
damages were incurred, if later, until the time the settlement
offer was made. Subsequent offers and counteroffers supersede
the legal effect of earlier offers and counteroffers. For the
purposes of clause (3), the amount of settlement offer must be
allocated between past and future damages in the same proportion
as determined by the trier of fact. Except as otherwise
provided by contract or allowed by law, preverdict, preaward, or
prereport interest shall not be awarded on the following:
(1) judgments, awards, or benefits in workers' compensation
cases, but not including third-party actions;
(2) judgments or awards for future damages;
(3) punitive damages, fines, or other damages that are
noncompensatory in nature;
(4) judgments or awards not in excess of the amount
specified in section 487.30 2; and
(5) that portion of any verdict, award, or report which is
founded upon interest, or costs, disbursements, attorney fees,
or other similar items added by the court or arbitrator.
(c) The interest shall be computed as simple interest per
annum. The rate of interest shall be based on the secondary
market yield of one year United States treasury bills,
calculated on a bank discount basis as provided in this section.
On or before the 20th day of December of each year the
state court administrator shall determine the rate from the
secondary market yield on one year United States treasury bills
for the most recent calendar month, reported on a monthly basis
in the latest statistical release of the board of governors of
the federal reserve system. This yield, rounded to the nearest
one percent, shall be the annual interest rate during the
succeeding calendar year. The state court administrator shall
communicate the interest rates to the court administrators and
sheriffs for use in computing the interest on verdicts and shall
make the interest rates available to arbitrators.
When a judgment creditor, or the judgment creditor's
attorney or agent, has received a payment after entry of
judgment, whether the payment is made voluntarily by or on
behalf of the judgment debtor, or is collected by legal process
other than execution levy where a proper return has been filed
with the court administrator, the judgment creditor, or the
judgment creditor's attorney, before applying to the court
administrator for an execution shall file with the court
administrator an affidavit of partial satisfaction. The
affidavit must state the dates and amounts of payments made upon
the judgment after the most recent affidavit of partial
satisfaction filed, if any; the part of each payment that is
applied to taxable disbursements and to accrued interest and to
the unpaid principal balance of the judgment; and the accrued,
but the unpaid interest owing, if any, after application of each
payment.
(d) This section does not apply to arbitrations between
employers and employees under chapter 179 or 179A. An
arbitrator is neither required to nor prohibited from awarding
interest under chapter 179 or under section 179A.16 for
essential employees.
Sec. 6. [550.011] [JUDGMENT DEBTOR DISCLOSURE.]
Unless the parties have otherwise agreed, if a judgment has
been docketed in district court for at least 30 days, and the
judgment is not satisfied, the district court in the county in
which the judgment originated shall, upon request of the
judgment creditor, order the judgment debtor to mail by
certified mail to the judgment creditor information as to the
nature, amount, identity, and locations of all the debtor's
assets, liabilities, and personal earnings. The information
must be provided on a form prescribed by the supreme court, and
the information shall be sufficiently detailed to enable the
judgment creditor to obtain satisfaction of the judgment by way
of execution on nonexempt assets and earnings of the judgment
debtor. The order must contain a notice that failure to
complete the form and mail it to the judgment creditor within
ten days after service of the order may result in a citation for
civil contempt of court. Cash bail posted as a result of being
cited for civil contempt of court order under this section may
be ordered payable to the creditor to satisfy the judgment,
either partially or fully.
Sec. 7. [REPEALER.]
Minnesota Statutes 1992, sections 487.30; 488A.12; 488A.13;
488A.14; 488A.15; 488A.16; 488A.17; 488A.29; 488A.30; 488A.31;
488A.32; 488A.33; and 488A.34; and Laws 1992, chapter 591,
section 21, are repealed.
Sec. 8. [EFFECTIVE DATE.]
Sections 1 to 5 and 7 are effective July 1, 1993.
Presented to the governor May 17, 1993
Signed by the governor May 20, 1993, 2:08 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes