Legal Reform
Limits on Attorney Fees (HF 514, Thissen)
Issue Overview: NFIB strongly supports a critical tort reform that will place limits on attorney fees that many business defendants must pay to prevailing parties. Currently, the awarding of attorney fees is a one-way street, especially in employment law cases where former employees or applicants are suing businesses. Even though the statute states attorney fees may be awarded to the prevailing parties, due to controlling US and Minnesota Supreme Court decisions it is extremely rare that a prevailing business defendant would ever be compensated for their fees. Also concerning is that in some cases the attorney fees exceed the amount of the actual court verdict.
NFIB strongly supports legislation that will place restrictions on the attorney fees that business defendants must pay to prevailing plaintiffs. If a plaintiff rejects a settlement offer and receives less in the final award, the business defendant will only have to pay for attorney fees up to the point of the settlement offer. Usually this occurs at the halfway point of the case, but sometimes can come quite early.
Issue Status: Rep. Thissen (Minneapolis) has introduced this legislation last year in the House. This bill has yet to be introduced in the Senate.
NFIB Position: We strongly support this bill and are one of the lead advocates.
