Legal costs continue to exact significant expense on businesses. Minnesota laws should be reformed so that this state is not viewed as the forum of choice for litigation, especially in class-action lawsuits.

2010 Legislative Priorities

We seek legislation that would provide immediate appeal of class certification and a stay of proceedings while the appeal is pending. Once a class is certified, the costs associated with class-action litigation – i.e. discovery – quickly add up. A stay of proceedings makes sure the class-certification decision is properly made before proceeding with other aspects of the litigation.

We anticipate playing defense on a variety of proposals that will expand the legal exposure of businesses. 

2009 Legislative Accomplishments

The False Claims Act is designed to improve prosecution of fraud against the state. We succeeded in including a “Right to Cure” amendment in the final legislation that gives businesses the ability to correct inadvertent errors and pay the state any money it owes within 45 days as long as there was no intent to defraud.

A Minnesota Chamber-led compromise paved the way for legislation that, as originally introduced, would have allowed a business that successfully sues its insurer for breach of contract to recover attorney fees, consequential damages and apply a 12-percent prejudgment interest rate. In the end, the prejudgment interest rate for commercial coverage disputes was set at 10 percent. Attorney fees will not be awarded, a stance we supported.

Staff: Tom Hesse, (651) 292-4678, thesse@mnchamber.com

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