HF3690

Purpose

• To set and adjust liability limits for civil tort claims involving the state, its employees, and municipalities.
• To address claims arising from nonprofit organizations that operate under nocost contracts or other state-supported arrangements, especially relating to outdoor recreational activities.
• To establish rules for how damages are handled when multiple claimants are involved, and to limit or exclude punitive damages in certain nonprofit/municipal contexts.
• To clarify how damages are calculated and what counts toward the limit, including losses like loss of services or loss of support.

Main Provisions

• State liability limits for tort claims (Minnesota Statutes 3.736 subdivision 4)

  • Death by wrongful act or omission: up to 300,000; all other claims: up to 300,000 for claims arising before August 1, 2007.
  • Death: up to 400,000; all other claims: up to 400,000 for claims arising on or after August 1, 2007 and before July 1, 2009.
  • Death: up to 500,000; all other claims: up to 500,000 for claims arising on or after July 1, 2009.
  • Single-occurrence caps (for multiple claims arising from one event):
  • 750,000 for claims arising on or after January 1, 1998 and before January 1, 2000.
  • 1,000,000 for claims arising on or after January 1, 2000 and before January 1, 2008.
  • 1,200,000 for claims arising on or after January 1, 2008 and before July 1, 2009.
  • 1,500,000 for claims arising on or after July 1, 2009.
  • Special nonprofit/nocost exception:
  • 1,000,000 for any number of claims arising from a single occurrence if the claim involves a nonprofit organization engaged in outdoor recreational activities funded by the state or operating under a state-permit, or operating under a nocost contract with the state.
  • Apportionment if the total exceeds the limit:
  • If multiple claimants are involved and total awards exceed the applicable limit, any party may ask the court to apportion shares proportionally to each claimant’s award relative to the total.
  • Losses included in the limit:
  • The cap includes damages for loss of services or loss of support arising from the same tort.

• Municipal liability limits and punitive damages (Minnesota Statutes 466.04 subdivision 1)

  • Similar tiered caps apply to municipal claims on death and non-death torts, with per-single-occurrence caps mirroring the state limits, and updated levels for claims arising at different times.
  • Hazardous substance releases:
  • For claims arising from the release or threatened release of a hazardous substance, the limits are doubled (twice the listed caps) when applicable, regardless of the exact legal path the claim takes.
  • Nonprofit outdoor recreation claims involving municipalities:
  • A 1,000,000 cap may apply for any number of claims arising from a single occurrence if the claim involves a nonprofit organization engaged in outdoor recreation activities funded by a municipality, or operating under a municipal permit or nocost contract with the municipality.
  • Punitive damages:
  • In general, punitive damages are not allowed for these nonprofit/municipal claims.

Key Definitions and Terms

• Nocost contract: a contract between a state agency/department and a nonprofit organization where the nonprofit provides goods or services to the state at no cost to the state.
• Death by wrongful act or omission: a category of tort claim impacting a person’s death.
• Loss of services / loss of support: damages that count toward the liability limits when caused by the tort.
• Single occurrence: an event that triggers multiple related claims, for which a per-occurrence cap applies.
• Hazardous substance: a release or threatened release that triggers the higher, doubled limits.

Significant Changes Compared to Prior Law

• Substantially higher and more clearly defined caps on government liability for tort claims, with a long schedule of increasing limits over time and new per-occurrence caps.
• Explicit inclusion of nonprofit organizations and nocost contracts in the liability framework, with a separate cap and world-specific rules.
• A formal mechanism (apportionment) to divide a large total award among multiple claimants when the total exceeds the applicable limit.
• Doubling of certain caps for claims arising from the release or threatened release of hazardous substances.
• Narrowed or clarified scope for punitive damages, including a prohibition on punitive damages for nonprofit/municipal outdoor recreation claims.

Relevant Terms - tort claim - limits / liability cap - death by wrongful act or omission - claims arising before/after specific dates - single occurrence - apportionment - loss of services - loss of support - nocost contract - nonprofit organization - outdoor recreational activities - state / municipality - punitive damages - hazardous substance release - per-claim vs per-occurrence cap