Senate wants to limit class-actions, shorten deadline to file lawsuits

The state Senate wants to make it harder for Minnesotans to join class-action lawsuits, a move supporters say will limit unnecessary litigation but that critics argue will hinder consumer protection.

The provision was part of three lawsuit retooling proposals that the Senate approved on Saturday, but sent a flash of controversy through an otherwise workmanlike weekend floor session.

"Minnesotans deserve swift justice, and a court system that encourages early and fair resolution of legal disputes," said Sen. Julianne Ortman, R-Chanhassen. "These bills are designed to reform our civil justice system to provide less expensive litigation, and to eliminate incentives for delay that add significant costs for all litigants."

Under one proposed change, companies being sued for fraud or negligence could appeal the certification of class-action suits before racking up expensive legal fees.

Supporters said the provision would weed out potentially frivolous lawsuits, but critics argued that measure creates monumental hurdles that will make it difficult for consumers to get compensation when they've been harmed.

The proposal will "eviscerate Minnesota's consumer protection laws," said Sen. Ron Latz, DFL-St. Louis Park. "This is a really bad bill."

Ortman said that the change merely ensures that potential class-action lawsuits get more scrutiny. It does nothing to snuff out legitimate class-action lawsuits, she said.

"This is a common sense bill," she said.

Democrats said this is part of a national Republican push to shield big companies and party donors from expensive litigation that hurts profits.

"Clearly what you are saying is that we are looking for a way to keep consumers from the courtroom," said Sen. Richard Cohen, DFL-St. Paul. "That's very concerning to me."

Another proposal limits to shorten the deadline Minnesotans have to file lawsuits from a nation leading six years to four years.

Some Republicans said the change will prevent people from trying to squeeze money out of insurance companies years after an incident.

Sen. Michael Jungbauer, R-East Bethel, said these people "hope you don't remember what went on, hope you can't find witnesses."

"We need to shorten that up," he added.

Democrats said there's scant proof this really happens, and noted that in many instances, like exposure to harmful chemicals, it can take years for problems to surface. Those people would be out of luck, they said.

"The insurance industry and big corporation are looking for ways to reduce their exposure," Latz said. "Even in cases where there are costs savings, those savings are not passed on to premium payers."

A third proposal, to raise the small-claims court limits to $20,000 from $7,500, received overwhelming and bipartisan support.

These proposals have similar measures moving through committees in the House, which means they could land on Gov. Mark Dayton's desk before the session ends May 23.