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HF2653 (Legislative Session 94 (2025-2026))

Fees and expenses awarded to prevailing party if municipality's position was not substantially justified.

Related bill: SF617

AI Generated Summary

Purpose of the Bill

The bill aims to provide financial relief to individuals or entities (excluding municipalities) involved in civil lawsuits against a municipality if the court determines that the municipality's legal stance was not reasonably justified.

Main Provisions

  • Awarding Fees and Expenses:

    • Courts must award fees and other expenses to the prevailing party in civil cases against a municipality if the municipality's position wasn't substantially justified.
    • "Fees" include attorney fees or fees from authorized non-attorney representatives and must align with prevailing market rates.

  • Justification of Municipality's Position:

    • A municipality's defense is considered "substantially justified" if it had a reasonable legal and factual basis upon examining the totality of circumstances surrounding the case.

  • Limitations on Awards:

    • Courts can reduce or deny awards if the prevailing party elongated the proceedings unnecessarily or if special circumstances render the award unjust.

  • Application Process:

    • A prevailing party must apply for fees and expenses within 30 days of the final judgment. The application should detail the legal and expert fee calculations and assert that the municipality's position lacked substantial justification.

Significant Changes to Existing Law

  • This bill introduces a new statute, expanding the rights of prevailing parties in civil actions against municipalities by potentially awarding legal fees when a municipality's legal argument is found to be unjustified.
  • The law does not affect awards related to tort actions and coexists with any other existing laws regarding cost recovery.

Relevant Terms

  • Civil Action
  • Prevailing Party
  • Municipality
  • Substantially Justified
  • Attorney Fees
  • Expert Witness
  • Legal Expenses

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2025HouseFloorActionIntroduction and first reading, referred toJudiciary Finance and Civil Law

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This statute is referenced for the definition of 'expenses' in the context of awarding fees and expenses in civil actions involving a municipality.",
      "modified": []
    },
    "citation": "15.471",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This statute is referenced for the definition of 'municipality' in the context of civil actions.",
      "modified": []
    },
    "citation": "466.01",
    "subdivision": "subdivision 1"
  }
]

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