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Dayton pens session’s first vetoes

Published (2/17/2012)
By Lee Ann Schutz
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Gov. Mark Dayton vetoed a series of bills Feb. 10 that Republicans say are designed to reform civil litigation.

Dayton said the four bills “appear to be another political ploy as they (Republicans) cater to their rich and powerful friends at the expense of most Minnesotans. … The real impact would be to reduce the rights of law-abiding citizens and businesses that seek justice from the wrongdoing of others.”

He noted in his veto letters his willingness to consider changes to the state’s civil laws that would help businesses and residents obtain justice and fair recovery.

Bill sponsors said the package addressed lawsuit abuse and proposed reform designed to improve the business and job climate in Minnesota.

Rep. Pat Mazorol (R-Bloomington) and Sen. Julianne Ortman (R-Chanhassen) sponsor HF770/ SF530*/CH121 that would change how interest rates are computed before and after judgments. It would have lowered the awards from the current 10 percent flat rate to a market-driven rate with a floor of 4 percent.

In his veto letter, Dayton said he found it “objectionable that the Legislature allowed prejudgment interest for businesses with commercial insurance policy claims at 10 percent, but lowered similar claims for average citizens to 4 percent.”

In addition to increasing the threshold for filing a civil action in conciliation court from $7,500 to $10,000, HF211/ SF149*/CH118, sponsored by Rep. Doug Wardlow (R-Eagan) and Ortman, would have addressed the right of appeal in class action suits. Wardlow said this would expedite the process, saving the state approximately $41,000 annually.

Dayton said the provisions are not consistent with the court’s recommendations for effectively addressing small claims. He called it “legislative meddling with court procedures.”

He and Ortman also sponsor HF654/ SF373*/CH119 that would have shortened the state’s statute of limitations from six years to four years.

Dayton said the legislation would eliminate “important protections for citizens and businesses, when they are harmed by the wrongful actions of others.”

Sponsored by Mazorol and Sen. Scott Newman (R-Hutchinson), HF747/ SF429*/CH120 would have provided that when making an award, a judge must take into consideration the reasonableness of the attorney fees sought in relation to the amount of damages awarded to the prevailing party.

Dayton’s concern is that the legislation would make “it more difficult for average citizens to defend themselves against powerful interest.”

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