Justia Minnesota Supreme Court Opinion Summaries

The Supreme Court affirmed the decision of the Minnesota Tax Court affirming the assessment of the Commissioner of Revenue assessing tax on an apportioned share of Cities Management, Inc.'s (CMI) income from the sale of the S corporation, holding that the income from the corporation's sale was apportionable business income.CMI, which did business in Minnesota and Wisconsin, and its nonresidential partial owner filed Minnesota tax returns characterizing the sale of CMI's goodwill as income that was not subject to apportionment by the State under Minn. Stat. Ann. 290.17. The Commissioner disagreed and assessed tax on an apportioned share of the corporation's income from the sale. The tax court affirmed. The Supreme Court affirmed, holding that CMI's income did not constitute "nonbusiness" income under section 290.17, subd. 6 and may be constitutionally apportioned as business income. View "Cities Management, Inc. v. Commissioner of Revenue" on Justia Law

The Supreme Court reversed the decision of the court of appeals affirming the final order of the Commissioner of the Department of Human Services' (DHS) concluding that Trinity had engaged in the abuse outlined in DHS's notices and spreadsheets, holding that the first report of the administrative law judge (ALJ) was the binding decision in this matter.Trinity Home Health Care, which provided nursing and personal care assistant services, received reimbursement from DHS for services that it provided to Medicaid-eligible people with disabilities. After an investigation, DHS sent Trinity notices of termination from the program and demanding return of overpayments and payment-withholding. Both before and after remand by the Commissioner, the ALJ found that terminating Trinity's participation in the Minnesota Health Care Programs was an inappropriate sanction for Trinity's failure to provide certain records. The Commissioner modified the report, concluding that Trinity had engaged in the abuse alleged by the DHS. The court of appeals affirmed. The Supreme Court reversed, holding (1) the Commissioner did not have the authority to remand the case due to the DHS's general authority to administer and supervise Medicaid; and (2) the Commissioner did not have implied authority to remand the case to the ALJ under case law. View "In re Surveillance & Integrity Review Appeals by Trinity Home Health Care Services" on Justia Law

The Supreme Court held that an action taken by the Minnesota Pollution Control Agency (MPCA) in issuing a National Pollutant Discharge Elimination System/State Disposal System permit was arbitrary and capricious and that the permit did not comply with a Minnesota rule addressing wastewater discharges to groundwater, Minn. R. 7060.0600, subp. 2.At issue was the MPCA's issuance of the permit for a Poly Met Mining, Inc. project. The court of appeals reversed in part, concluding that the MPCA failed properly to consider whether the federal Clean Water Act (CWA) applied to future discharges from Poly Met's facility to groundwater. The Supreme Court remanded the cause, holding (1) remand was required because there were suggestions that the MPCA did not properly consider whether the permit complies with the CWA and that the MPCA did not genuinely engage in reasoned decision-making; (2) remand was required for consideration of whether a variance was available to allow the planned discharge to the unsaturated zone within the containment system; and (3) the prohibition on injecting polluted water directly to the groundwater saturated zone for long-term storage did not apply in this case. View "In the Matter of the Denial of Contested Case Hearing Requests & Issuance of National Pollutant Discharge Elimination System" on Justia Law

The Supreme Court reversed the decision of the court of appeals dismissing an administrative appeal for lack of appellate jurisdiction in the underlying case involving an air emissions permit issued by the Minnesota Pollution Control Agency for the NorthMet mining project in northern Minnesota, holding that the service and other steps taken by Appellants were effective to invoke appellate jurisdiction and that the appeal was timely-filed under the thirty-day service deadline set forth in Minn. Stat. 14.63.After the Agency issued the permit at issue to Poly Met Mining, Inc., Appellants filed a certiorari appeal. The court of appeals granted PolyMet's motion to dismiss the appeal for lack of jurisdiction on the ground that Appellants had failed to serve PolyMet's counsel within thirty days of receiving the decision. At issue before Supreme Court was whether the service requirements in the judicial review provisions of the Minnesota Administrative Procedure Act, Minn. Stat. 14.63-.69, require petitioners to serve appeal papers on a represented party's counsel. The Supreme Court reversed, holding that, when initiating judicial review where the parties were otherwise served directly, the Act's judicial review provisions do not require service on a represented party's attorney. View "In re Issuance of Air Emissions Permit No. 13700345-101 for PolyMet Mining Inc." on Justia Law

The Supreme Court affirmed the judgment of the Minnesota Tax Court reducing the Commissioner of Revenue's valuations of CenterPoint Energy Minnegasco's natural gas distribution pipeline system for January 2, 2018 through January 2, 2019, holding that the Commissioner was not entitled to relief.The tax court reduced the Commissioner's valuations and ordered the Commissioner to recalculate Minnegasco's tax liability. The Commissioner appealed, challenging the tax court's income-equalization and cost approaches. The Supreme Court affirmed, holding that the tax court (1) did not err in the way that it used the Commissioner's initial assessments when evaluating the totality of the evidence and making its independent evaluations; (2) did not abuse its discretion in considering the conflicting expert opinions; and (3) did not clearly err in finding external obsolescence. View "Commissioner of Revenue v. CenterPoint Energy Resources Corp." on Justia Law

The Supreme Court affirmed in part and reversed in part the decision of the court of appeals concluding that Minnesota Rule 8210.2450, subparts 2 and 3 (the rule) does not conflict with Minn. Stat. 203B.121 (the statute) and that the challenged rule was therefore invalid, holding that subpart 3 of the rule conflicted with subdivision 2(b)(3) of the statute.Appellants brought this declaratory judgment action seeking a prospective declaration that the administrative rule, which governed the acceptance of absentee ballots, was invalid because the rule subparts conflicted with the statute by infringing on discretion the legislature gave to ballot board members. The court of appeals determined that there was no conflict between the rule and the statute. The Supreme Court reversed in part, holding (1) Minn. R. 8210.2450, sub. 3, which authorized any ballot board member to review signatures in the event of an identification number mismatch, was invalid to the extent that the rule conflicted with Minn. Stat. 203B.121, subd.2(b)(3), which required that election judges conduct that review; and (2) the other challenged parts of the rule did not conflict with the statute. View "Minn. Voters Alliance v. Office of Minn. Secretary of State" on Justia Law

The Supreme Court reversed the decision of the court of appeals reversing the judgment of the district court declaring Appellant eligible to submit a petition seeking compensation based on exoneration under Minnesota's Incarceration and Exoneration Remedies Act, Minn. Stat. 611.362 to 611.368, holding that Appellant was not eligible for compensation based on exoneration.At issue was whether Appellant had established, by a fair preponderance of the evidence, that she was exonerated within the meaning of Minn. Stat. 590.11. The district court concluded that Appellant was eligible for compensation based on a finding of exoneration. The court of appeals agreed that Appellant was "exonerated" but remanded for the district court to determine a separate issue. The Supreme Court reversed, holding that Appellant was not eligible for compensation based on exoneration. View "Back v. State" on Justia Law

The Supreme Court held that Claimant was not entitled to workers' compensation benefits after the date on which he no longer had a diagnosis of post-traumatic stress disorder (PTSD) by a licensed professional using the most recent edition of the Diagnostic and statistical Manual of Mental Disorders (DSM-5).From 2007 to 2020 Claimant was employed as a Mower County Deputy Sheriff. From September 25, 2019 to March 30, 2021, Claimant had a diagnosis of PTSD by a licensed professional, making him eligible for workers' compensation benefits. In this action, Claimant argued that he was entitled to benefits after March 30, 2021, the date that he no longer had a diagnosis of PTSD, because he remained disabled from a mental illness. The compensation court awarded benefits from April 1, 2020 into the present. The court of appeals reversed in part, concluding that Claimant was not entitled to benefits after March 30, 2021. The Supreme Court affirmed, holding that Claimant was not entitled to workers' compensation benefits after March 30, 2021. View "Chrz v. Mower County" on Justia Law

The Supreme Court reversed the decision of the Workers' Compensation Court of Appeals (WCCA) reversing the rulings of the compensation judge finding that C. Jeremy Lagasse was entitled to contingent fees under Minn. Stat. 176.081, subd. 1(c) and that Larry Horton was entitled to partial reimbursement of fees under Minn. Stat. 176.081, subd. 7, holding that the WCCA incorrectly applied subdivision 1(c) in its standard of review.Horton, who was injured during his employment with Aspen Waste Systems and sought permanent partial disability (PPD) benefits through Aspen's insurer (Insurer), retained Lagasse to represent him in the matter. The compensation judge determined that Lagasse was entitled to contingent fees and that Horton was entitled to partial reimbursement of fees. The WCCA reversed. The Supreme Court reversed and remanded the case for further proceedings, holding (1) the WCCA incorrectly applied subdivision 1(c); and (2) the compensation judge and the WCCA incorrectly applied subdivision 7. View "Lagasse v. Horton" on Justia Law

The Supreme Court reversed the decision of the court of appeals affirming in part and reversing and remanding in part the judgment of the district court denying Energy Policy Advocates' motion to compel and dismissing its civil action against seeking production of certain documents under the Data Practices Act, holding that this Court formally recognizes the common-interest doctrine in Minnesota.Energy Policy submitted document requests under the Data Practices Act, Minn. Stat. 130.01 through 13.90, related to climate-change litigation to the Office of the Attorney General. At issue on appeal was the existence and scope of the applicability of the attorney-client privilege to internal communication among attorneys in public law agencies, the common-interest doctrine, and the section of the Data Practices Act governing Attorney General data. The Supreme Court held (1) the common-interest doctrine is formally recognized in Minnesota; (2) the attorney-client privilege may apply to protect the confidentiality of internal communications among attorneys in public law agencies; and (3) the Legislature's classification of Attorney General data under Minn. Stat. 13.65, subdivision 1 as "private data on individuals" even when the data do not pertain to "individuals" is upheld. View "Energy Policy Advocates v. Ellison" on Justia Law