News

As occurs in most years, the Workers’ Compensation Advisory Council proposed new legislation in 2021, amending the Minnesota Workers’ Compensation Act. The legislation was advanced in both the House of Representatives and the Senate, and it was passed by both legislative houses. It was signed into law by Governor Walz on April 26, 2021. Here is a breakdown of the new legislation:

ACKSP Brief provides regular communications from our attorneys to keep you connected and updated on current legal issues and decisions that impact your businesses and claims handling.

On April 14, 2021, the Minnesota Supreme Court released King’s Cove Marina, LLC v. United Fire & Cas. Co., providing guidance on the Products Completed Operations Hazard (“PCOH”) limit and on Miller-Shugart allocation. In the underlying liability case, the insured, Lambert, entered a Miller-Shugart settlement agreement with the liability plaintiff, King’s Cove. Lambert stipulated to a $2 million dollar judgment being entered against it to be collected from Lambert’s insurer, United Fire. King’s Cove then brought a garnishment action against United Fire, alleging all of the claims in the liability case were for covered damages, and that the Miller-Shugart settlement agreement was enforceable.

ACKSP Brief provides regular communications from our attorneys to keep you connected and updated on current legal issues and decisions that impact your businesses and claims handling.

ACKSP Brief provides regular communications from our attorneys to keep you connected and updated on current legal issues and decisions that impact your businesses and claims handling.

The Minnesota Supreme Court offered a reminder to employers in its February 3, 2021 decision, Hall v. City of Plainview: carefully draft your employee handbooks and follow your own policies. If the handbook contains ambiguous disclaimers and concrete compensation policies, it can be enforced against the employer as a unilateral contract.

Construction Law attorney, Jonathon Zentner, joined Acuity Insurance to share insights on avoiding legal issues in construction. Tune in to hear more from Jon and others in this webinar.

While 2020 was a year with more bad news than good, the Minnesota Court of Appeals offered something to celebrate when it released its decision in Else v. Auto-Owners Insurance Company in late-December. The Court’s decision, agreeing with Attorneys Tim Tobin and Marissa Linden of Arthur Chapman, holds that first-party insurance policy limits operate as a cap on pre-judgment (or pre-award) interest. While unreported, Else is a favorable outcome for insurers and is anticipated to have persuasive value in other first-party coverage matters as we head into the brighter days of 2021.

Congratulations to appellate attorneys Jeff Markowitz and Steve Warner for a stellar win at the North Dakota Supreme Court. A commercial landlord tried to collect a windfall of more than $2,000,000 from their client. Arthur Chapman trial attorneys Mike Ryan, Jonathon Zentner, Corey Bronczyk, and Bradley Idelkope secured summary judgment against the claim, and Jeff and Steve defended the win on appeal. Great team effort.

Arthur, Chapman, Kettering, Smetak & Pikala, P.A. has announced the election of Jeffrey M. Markowitz as shareholder at the firm.

A primer on changes wrought in the wake of Justice David Lillehaug’s 2016 article on unpublished appellate decisions.

The Minnesota Supreme Court issued a ruling addressing the significance of a potential intervenor’s decision not to intervene when it received adequate and timely notice of its right to intervene in an employee’s pending proceeding. In Koehnen v. Flagship Marine Company, File No. A20-0053 (August 12, 2020), the Minnesota Supreme Court confirmed that pursuant to Minn. Stat. §§ 176.271, 176.291 and Minn. R. 1420.1850, subp. 3B, when a potential intervenor receives adequate and timely notice of its right to intervene but chooses not to intervene in an employee’s pending proceeding, it can be extinguished by the award on stipulation for settlement and cannot subsequently dispute the award.

On July 29, 2020, the Minnesota Supreme Court released Peterson v. Western National, expanding the scope of what can be first-party bad faith in Minnesota. In the case, Peterson claimed the $250,000 limits of her underinsured motorist (“UIM”) coverage, alleging that a whiplash injury from a motor vehicle accident caused severe headaches that required quarterly Botox injections (a relatively novel treatment). Western National’s last offer before trial was $50,000. A jury awarded Peterson damages over $1.4 million. After trial, Peterson amended her complaint to allege bad faith against Western National. The bad-faith claim was tried to the district court judge who awarded $100,000 in costs and $97,940.50 in attorney fees. Western National appealed.

On August 3, a New York federal district court judge injected a great deal of uncertainty into COVID-19 paid-leave law. The Honorable Judge Paul Oetkein of the Southern District of New York vacated four Families First Coronavirus Response Act (“FFCRA”) regulations in the U.S. Department of Labor’s (“DOL”) Final Rule. The court order impacts regulations that govern the Emergency Family and Medical Leave Expansion Act (“EFMLAEA”) and Emergency Paid Sick Leave Act (“EPSLA”).

On Monday, June 15, the United States Supreme Court ruled that Title VII of the Civil Rights Act of 1964, which, among other things, prohibits discrimination on the basis of “sex”, forbids employers from discriminating based on sexual orientation and gender identity.

In a decision handed down on June 3, 2020, the Minnesota Supreme Court abolished the common-law prohibition against champerty. Champerty is an agreement to divide litigation proceeds between the owner of the litigated claim and an unrelated party with no bona fide interest in the claim who funds the litigation in whole or in part.

On May 4, 2020 the Minnesota Department of Labor and Industry (DLI) announced new Treatment Parameters for work-related post-traumatic stress disorder (PTSD).

The authors of this article had the privilege of representing Kraus-Anderson Construction Company ("KA") through the five-year Village Lofts litigation (2015-2020), which recently concluded with a decisive win for the construction industry at the Minnesota Supreme Court.

Arthur Chapman congratulates Mackrell International (MI) on securing their eighth consecutive ranking as a leading global network in the Chambers Directory, a premier legal industry directory.