Minnesota: Major Lawsuit Importer, Halleland's Scott Smith on closing the border

In 2007, of the 1316 product liability plaintiffs commencing lawsuits in Minnesota, 1193 had no relationship to the state [Source: District of MN ECF database[.  That means that 90.7% had no nexus such as residence in the state, defendants based in the state, medical treatment received in the state.

Why MN has become a major lawsuit importer, explains Halleland Lewis Nilan & Johnson attorney Scott Smith in MINNESOTA LAWYER, is the state's "unique statue of limitations loophole" [March 31 edition].  Actually, they are the longest in the nation: Four years for strict liability, six for negligence. 

Smith, who we know from lead-paint trials like "Thomas," also concentrates his defense practice on pharmaceutical and medical device product-liability actions.  So, he's witnessed on the front lines the havoc in the legal system, particularly in the MN courts, this loophole can trigger.

There's more.  The clock doesn't start ticking, notes Smith, "until a plaintiff knows or should know that he or she suffered harm proximately caused by the acts of another." Examples of that include the famous lawsuit "Dalton v. Dow Chemical." This wasn't always the situation. Until 1977, such exporting of out-of-date lawsuits was barred from entering MN by Minn. Stat. sec. 541.14 or the so-called "borrowing statue."

Smith sees a way to halt this current forum-shopping which is clogging the MN courts.  He recommends, "extending the reach of Minnesota's borrowing statue to all actions, pending and future."  This would close the statue of limitations loophole.  The folks who could do this are the state's legislators.

Scott Smith's law firm Halleland Lewis Nilan & Johnson is located in Minneapolis.  He will be representing Millennium Holdings at the Rhode Island Supreme Court lead paint public nuisance appeal on May 15.  He can be reached at Ssmith@halleland.com.