Minnesota's High Court Reopens Wage Theft Case Against Madison Equities Amid Controversy Over Statute of Limitations
A long-standing dispute over wage theft allegations against the owner of downtown St. Paul's largest property has taken a surprising turn, as Minnesota's Supreme Court recently reopened a civil enforcement action filed by Attorney General Keith Ellison's office.
Six security guards had reported concerns about wage theft in 2019, prompting Ellison's office to file a civil investigative demand for payroll records that Madison Equities refused to produce until July 2022. The delay led to a three-year investigation, with the state ultimately filing a lawsuit alleging violations of the Fair Labor Standards Act.
In June 2023, Ellison's office sued Madison Equities, claiming that workers were paid overtime wages at different buildings, allowing the company to avoid paying extra pay. However, the district court initially dismissed the case due to the alleged statute of limitations expiring two years earlier.
The Minnesota Court of Appeals upheld this decision in December 2021, but Justice Anne McKeig's majority opinion overturned the lower courts' ruling on Wednesday. The court found that the litigation over the civil investigative demand effectively tolled the applicable limitations period, sending the case back to the district court for further proceedings.
This decision has raised concerns among some justices and lawyers, who see it as a potential rewriting of civil procedure rules. Two dissenting justices, Paul Thissen and Sarah Hennesy, argued that this ruling could extend the statute of limitations indefinitely based on when the attorney general deems sufficient evidence is handed over, effectively allowing companies to stall for time.
The decision comes amid further financial struggles for Madison Equities' properties in downtown St. Paul, which have since fallen into foreclosure after being put up for sale by the company's widow following her late husband's passing in January 2024.
Attorney General Keith Ellison expressed concerns that this ruling could allow companies to "stall for time" and run out the clock in future cases, but Justice McKeig clarified that the civil investigative demand alone does not pause the statute of limitations. The Supreme Court's decision effectively sends a new message: the fight over wage theft will continue in the state of Minnesota.
A long-standing dispute over wage theft allegations against the owner of downtown St. Paul's largest property has taken a surprising turn, as Minnesota's Supreme Court recently reopened a civil enforcement action filed by Attorney General Keith Ellison's office.
Six security guards had reported concerns about wage theft in 2019, prompting Ellison's office to file a civil investigative demand for payroll records that Madison Equities refused to produce until July 2022. The delay led to a three-year investigation, with the state ultimately filing a lawsuit alleging violations of the Fair Labor Standards Act.
In June 2023, Ellison's office sued Madison Equities, claiming that workers were paid overtime wages at different buildings, allowing the company to avoid paying extra pay. However, the district court initially dismissed the case due to the alleged statute of limitations expiring two years earlier.
The Minnesota Court of Appeals upheld this decision in December 2021, but Justice Anne McKeig's majority opinion overturned the lower courts' ruling on Wednesday. The court found that the litigation over the civil investigative demand effectively tolled the applicable limitations period, sending the case back to the district court for further proceedings.
This decision has raised concerns among some justices and lawyers, who see it as a potential rewriting of civil procedure rules. Two dissenting justices, Paul Thissen and Sarah Hennesy, argued that this ruling could extend the statute of limitations indefinitely based on when the attorney general deems sufficient evidence is handed over, effectively allowing companies to stall for time.
The decision comes amid further financial struggles for Madison Equities' properties in downtown St. Paul, which have since fallen into foreclosure after being put up for sale by the company's widow following her late husband's passing in January 2024.
Attorney General Keith Ellison expressed concerns that this ruling could allow companies to "stall for time" and run out the clock in future cases, but Justice McKeig clarified that the civil investigative demand alone does not pause the statute of limitations. The Supreme Court's decision effectively sends a new message: the fight over wage theft will continue in the state of Minnesota.