Source: Murnane Brandt Insurance Litigation Bulletin - Summer 2009

This past April, the Minnesota House of Representatives passed House File 417, which will require an insurer that loses in court to pay – in addition to any monetary damages awarded – attorneys’ fees and costs, plus a 10% per annum interest rate on amounts due under the insurance policy, calculated from the date the request for payment of those benefits was made to the insurer.  The bill is now set to be codified at Minnesota Statute § 60A.0811.

The new statute has the potential of negatively impacting the insurance market by raising insurance litigation costs because it does not contain any offsetting provision for insurers to recover attorneys’ fees and costs caused by often frivolous lawsuits.  Critics warn that it will unjustly impact countless lawsuits and could force insurers to prematurely pay suspect or fraudulent claims to avoid the risk of extremely high financial awards which could be levied against them under the bill.

Minn. Stat. § 60A.0811 will be effective August 1, 2009 and applies to causes of action existing on and arising on or after that date.

This Insurance Litigation Bulletin is designed to keep our clients generally informed about developments in the law relating to this firm’s practice and should not be construed as legal advice or a legal opinion concerning any factual situation.  Specific facts may alter any legal result.  Nor is this Bulletin intended to create an attorney-client relationship. 

If you have any questions, or would like more information, please contact your Murnane Brandt attorney or any of the following individuals: