1998 Minnesota Statutes

     566.34 Escrow of rent to remedy violations. 

    Subdivision 1.    Definitions.  The definitions in 
 section 566.18 apply to this section. 

    Subd. 2.    Escrow of rent.  If a violation exists in a 
 building, a tenant may deposit the amount of rent due to the 
 owner with the court administrator using the following procedure:

    (a) For a violation of section 566.18, subdivision 6, 
 clause (a), the tenant may deposit with the court administrator 
 the rent due the owner along with a copy of the written notice 
 of the code violation as provided in section 566.19, subdivision 
 2.  The tenant may not deposit the rent or file the written 
 notice of the code violation until the time granted to make 
 repairs has expired without satisfactory repairs being made, 
 unless the tenant alleges that the time granted is excessive. 

    (b) For a violation of section 566.18, subdivision 6, 
 clause (b) or (c), the tenant must give written notice to the 
 owner specifying the violation.  The notice must be delivered 
 personally or sent to the person or place where rent is normally 
 paid.  If the violation is not corrected within 14 days, the 
 tenant may deposit the amount of rent due to the owner with the 
 court administrator along with an affidavit specifying the 
 violation.  The court must provide a simplified form affidavit 
 for use under this clause. 

    (c) The tenant need not deposit rent if none is due to the 
 owner at the time the tenant otherwise files the notice required 
 by this subdivision.  All rent which thereafter becomes due to 
 the owner prior to the hearing under this section must be 
 deposited with the court administrator.  As long as proceedings 
 are pending under this section, the tenant must pay rent to the 
 owner or as directed by the court and may not withhold rent to 
 remedy a violation. 

    Subd. 3.    Counterclaim for possession.  The owner may 
 file a counterclaim for possession of the premises in cases 
 where the owner alleges that the tenant did not deposit the full 
 amount of rent with the court administrator.  The court must set 
 the date for a hearing on the counterclaim not less than seven 
 nor more than 14 days from the day of filing the counterclaim.  
 If the rent escrow hearing and the hearing on the counterclaim 
 for possession cannot be heard on the same day, the matters must 
 be consolidated and heard on the date scheduled for the hearing 
 on the counterclaim.  The contents of the counterclaim for 
 possession must meet the requirements for a complaint in 
 unlawful detainer under section 566.05.  The owner must serve 
 the counterclaim as provided in section 566.06, except that the 
 affidavits of service or mailing may be brought to the hearing 
 rather than filed with the court before the hearing.  The court 
 must provide a simplified form for use under this section. 

    Subd. 4.    Defenses.  The defenses provided in section 
 566.23 are defenses to an action brought under this section. 

    Subd. 5.    Filing fee.  The court administrator may 
 charge a filing fee in the amount set for complaints and 
 counterclaims in conciliation court, subject to the filing of an 
 inability to pay affidavit.  

    Subd. 6.    Notice of hearing.  A hearing must be held 
 within ten to 14 days of the day a tenant deposits rent with the 
 court administrator.  If the cost of remedying the violation, as 
 estimated by the tenant, is within the jurisdictional limit for 
 conciliation court, the court administrator shall notify the 
 owner and the tenant of the time and place of the hearing by 
 first class mail.  The tenant must provide the court 
 administrator with the owner's name and address.  If the owner 
 has disclosed a post office box as the owner's address under 
 section 504.22, notice of the hearing may be mailed to the post 
 office box.  If the cost of remedying the violation, as 
 estimated by the tenant, is above the jurisdictional limit for 
 conciliation court, the tenant must serve the notice of hearing 
 according to the Rules of Civil Procedure.  The notice of 
 hearing must specify the amount the tenant has deposited with 
 the court administrator, and must inform the owner that 
 possession of the premises will not be in issue at the hearing 
 unless the owner files a counterclaim for possession or an 
 action under sections 566.01 to 566.17.  

    Subd. 7.    Hearing.  The hearing shall be conducted by 
 a court without a jury.  A certified copy of an inspection 
 report meets the requirements of rule 803(8) of the Rules of 
 Evidence as an exception to the rule against hearsay, and meets 
 the requirements of rules 901 and 902 of the Rules of Evidence 
 as to authentication. 

    Subd. 8.    Release of rent prior to hearing.  If the 
 tenant gives written notice to the court administrator that the 
 violation has been remedied, the court administrator must 
 release the rent to the owner and, unless the hearing has been 
 consolidated with another action, must cancel the hearing.  If 
 the tenant and the owner enter into a written agreement signed 
 by both parties apportioning the rent between them, the court 
 administrator must release the rent in accordance with the 
 written agreement and cancel the hearing. 

    Subd. 9.    Consolidation with unlawful detainer.  
 Actions under this section and actions in unlawful detainer 
 brought under sections 566.01 to 566.17 which involve the same 
 parties must be consolidated and heard on the date scheduled for 
 the unlawful detainer. 

    Subd. 10.    Judgment.  (a) Upon finding that a 
 violation exists, the court may, in its discretion, do any or 
 all of the following: 

    (1) order relief as provided in section 566.25, including 
 retroactive rent abatement; 

    (2) order that all or a portion of the rent in escrow be 
 released for the purpose of remedying the violation; 

    (3) order that rent be deposited with the court as it 
 becomes due to the owner or abate future rent until the owner 
 remedies the violation; or 

    (4) impose fines as required in section 566.35.  

    (b) When a proceeding under this section has been 
 consolidated with a counterclaim for possession or an action in 
 unlawful detainer under sections 566.01 to 566.17, and the owner 
 prevails, the tenant may redeem the tenancy as provided in 
 section 504.02. 

    (c) When a proceeding under this section has been 
 consolidated with a counterclaim for possession or an action 
 under an unlawful detainer under sections 566.01 to 566.17 on 
 the grounds of nonpayment, the court may not require the tenant 
 to pay the owner's filing fee as a condition of retaining 
 possession of the premises when the tenant has deposited with 
 the court the full amount of money found by the court to be owed 
 to the owner. 

    Subd. 11.    Release of rent after hearing.  Upon 
 finding, after a hearing on the matter has been held, that no 
 violation exists in the building or that the tenant did not 
 deposit the full amount of rent due with the court 
 administrator, the court shall order the immediate release of 
 the rent to the owner.  Upon finding that a violation existed, 
 but was remedied between the commencement of the action and the 
 hearing, the court may order rent abatement and must release the 
 rent to the parties accordingly.  Any rent found to be owed to 
 the tenant must be released to the tenant.  

    Subd. 12.    Retaliation; waiver; rights as additional.  
 The provisions of section 566.28 apply to proceedings under this 
 section.  The tenant rights under this section may not be waived 
 or modified and are in addition to and do not limit other rights 
 or remedies which may be available to the tenant and owner, 
 except as provided in subdivision 2. 

    HIST: 1989 c 328 art 2 s 15; 1992 c 376 art 5 s 4 

*   NOTE:  This section is repealed by Laws 1998, chapter 253, 
*section 80, effective July 1, 1999.  Laws 1998, chapter 253, 
*section 81.