CHAPTER 565
CLAIM; POSSESSION OF PERSONAL PROPERTY
POSSESSION OF PERSONAL PROPERTY.565.21
DEFINITIONS.565.22
RECOVERY OF POSSESSION AFTER NOTICE AND
HEARING.
565.23
RECOVERY OF POSSESSION PRIOR TO NOTICE
AND HEARING.
565.24
BONDING REQUIREMENTS.565.25
POSSESSION BY RESPONDENT WITHOUT BOND;
STAY OF PROCEEDING.
565.251
ORDER FOR SEIZURE OF PROPERTY.565.26
SUFFICIENCY OF SURETY.565.27
FEES TO SHERIFF.565.28
ADVANCEMENT ON CALENDAR.565.29
565.01 [Repealed, 1979 c 18 s 12]
565.02 [Repealed, 1979 c 18 s 12]
565.03 [Repealed, 1979 c 18 s 12]
565.04 [Repealed, 1979 c 18 s 12]
565.05 [Repealed, 1979 c 18 s 12]
565.06 [Repealed, 1979 c 18 s 12]
565.07 [Repealed, 1979 c 18 s 12]
565.08 [Repealed, 1979 c 18 s 12]
565.09 [Repealed, 1979 c 18 s 12]
565.10 [Repealed, 1979 c 18 s 12]
565.11 [Repealed, 1979 c 18 s 12]
565.21 POSSESSION OF PERSONAL PROPERTY.
In an action to recover possession of personal property, the claimant may obtain possession of the
property prior to final judgment in the manner prescribed in Laws 1979, chapter 18.
History: 1979 c 18 s 1
565.22 DEFINITIONS.
Subdivision 1. Generally. For the purposes of Laws 1979, chapter 18, the terms in this section have the
meanings given them.
Subd. 2. Claimant. "Claimant" means a party asserting, in a pleading before a court, a claim for the
recovery of possession of personal property, whether the claim is asserted in a complaint, counterclaim or
reply.
Subd. 3. Respondent. "Respondent" means a person against whom a claimant asserts a claim and who
has, or is alleged to have, possession of the personal property which the claimant seeks to recover.
History: 1979 c 18 s 2
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565.23 RECOVERY OF POSSESSION AFTER NOTICE AND HEARING.
Subdivision 1. Motion. A claimant seeking to recover possession of property after service of a summons
and complaint but prior to final judgment shall proceed by motion. The motion shall be accompanied by an
affidavit which states:
(a) the particular property sought to be recovered by the claimant;
(b) the facts giving rise to claimant's right to possession, referring to the documents, if any, evidencing
the claimant's right to possession and the underlying obligation supporting the right;
(c) the facts showing that respondent is wrongfully detaining the property;
(d) if the property being claimed is security for an obligation, the date and the amount of the original
obligation, the amount which has been paid by respondent and the amount now owing to claimant;
(e) if the claimant asserts that the respondent is wrongfully detaining the property by reason of a breach
of contractual duty other than the failure to pay money, the claimant shall state the specific contractual
provision and the facts relating thereto; and
(f) a good faith approximation of the current market value of each item of property being claimed. Where
the property is inventory, accounts receivable or other property where separate valuation is not practicable,
claimant may provide a good faith approximation of the current market value of each category of property.
Subd. 2. Service upon respondent. The claimant's motion to recover possession of property together
with claimant's affidavit and a notice of hearing shall be served upon respondent in the manner prescribed
for service of a summons in a civil action in district court. If the respondent has already appeared in the
action, the motion shall be served in the manner prescribed for service of pleadings subsequent to the
summons. The date of hearing shall be fixed in accordance with rule 6 of the Minnesota Rules of Civil
Procedure, unless a different date is fixed by order of the court.
The notice of hearing served upon the respondent shall be signed by the claimant or the attorney for the
claimant and shall provide, at a minimum, the following information in substantially the following language:
"NOTICE OF HEARING
TO: [the respondent]
A hearing will be held on the ......... day of .........., .........., at .......... o'clock, ..M., [place] to determine
whether the sheriff shall remove from your possession and deliver to [claimant] (hereinafter "claimant") the
following property:
[list property]
You have a right to appear at this hearing on your own behalf or with an attorney. You will have the
opportunity to present defenses to the claimant's claims and to state reasons why the property described
above should not be taken.
If the court determines that the claimant has a right to have possession of the property while this lawsuit
is pending, you may nevertheless keep the property until the lawsuit is decided if you file with the court a
surety bond in the amount of $..........
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[In amount computed pursuant to section 565.25]. This amount is [1-1/4 times the claimant's estimate
of the value of the property] [1-1/2 times the claimant's claim against you]. If you believe the [value of the
property] [amount of the claim] is overstated, you may ask the court to lower it.
If you do not appear at the hearing, the court has authority to issue an order directing that the above
described property be immediately taken from your possession."
Subd. 3. Seizure order. After a hearing, the court shall order seizure of the property from respondent
and delivery to claimant if claimant has demonstrated the probability of success on the merits entitling
claimant to possession of the property and upon compliance with the bonding requirements set forth in
section 565.25, subdivision 1, unless the court makes the following findings:
(a) respondent has shown a defense to the merits of claimant's claim, the defense is a fair basis for
litigation and the defense would, if established at hearing on the merits, entitle respondent to retain possession
of the property;
(b) the interests of respondent cannot be adequately protected by the bond filed by claimant pursuant to
section 565.25, subdivision 1, if the property is delivered to the claimant prior to final decision on the merits;
and
(c) the harm suffered by the respondent would be substantially greater than the harm which would be
suffered by the claimant if the property were not delivered to the claimant prior to final decision on the
merits.
Subd. 4. Protection of claimant rights. If the court makes the findings prescribed by subdivision 3 and
orders that respondent may retain possession pending final decision on the merits, the court shall enter a
further order protecting the rights of the claimant to the extent possible. The order may require that respondent
make partial payment of the debt which may be due and that the payment shall be made either directly to
claimant or into an escrow, that respondent post a bond in an amount set by the court, that respondent make
the property available for inspection from time to time, that respondent be restrained from certain activities,
including, but not limited to, selling, disposing or otherwise encumbering the property, or any other provision
the court may deem just and appropriate.
Subd. 5. Bond. An order requiring seizure of property may be stayed up to three days to allow the
respondent time to post a bond pursuant to section 565.25, subdivision 2.
History: 1979 c 18 s 3; 1998 c 254 art 1 s 107
565.24 RECOVERY OF POSSESSION PRIOR TO NOTICE AND HEARING.
Subdivision 1. Motion. A claimant seeking to recover possession of property prior to notice and hearing
as provided in section 565.23 shall proceed by motion seeking such relief. The motion shall be accompanied
by an affidavit setting forth:
(1) the information required by section 565.23, subdivision 1;
(2) the facts establishing grounds for a prehearing seizure, as specified in subdivision 2.
Subd. 2. Seizure of property prior to hearing. The court may order seizure of the property from the
respondent prior to a hearing only if it makes specific findings, based upon competent evidence in the form
of affidavit or oral testimony, that:
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(1) a good faith effort has been made to inform respondent of the motion for a prehearing seizure or that
so informing respondent would endanger the ability of the claimant to recover the property;
(2) claimant has demonstrated the probability of success on the merits entitling the claimant to possession
of the property; and
(3)(i) respondent is about to remove the property in question from the state with the intent to hinder,
delay or defraud the claimant;
(ii) respondent is about to conceal, damage or dispose of the property with intent to hinder, delay or
defraud the claimant; or
(iii) due to other circumstances, which must be specified in the court's order, the claimant will suffer
irreparable harm if possession of the property is not obtained prior to a hearing; and
(4) claimant's interest in the property cannot be protected, pending a hearing pursuant to section 565.23
by an appropriate order of the court other than directing seizure.
Subd. 3. Order of protection. If the court makes the findings required by subdivision 2, clauses (1),
(2), and (3), but does not direct seizure, it may issue an appropriate order protecting the claimant's interest
in the property pending a hearing pursuant to section 565.23.
Subd. 4. Hearing date. If the court issues an order pursuant to subdivisions 2 or 3, the order shall
establish a date for a hearing at which respondent may be heard and which shall be conducted at the earliest
practicable time and shall take precedence over all matters except older matters of the same character.
Subd. 5. Hearing. The hearing held pursuant to subdivision 4 shall be conducted in accordance with
the criteria established in section 565.23, subdivisions 3, 4 and 5. In addition, if the court finds that the
motion for a prehearing seizure was made in bad faith the court may, in its discretion, award respondent the
actual damages incurred by reason of seizure of the property.
Subd. 6. Service of copy of order. The respondent shall be served with a copy of the order issued
pursuant to this section together with a copy of all pleadings and supporting documents and a notice of
hearing. Service shall be in the manner prescribed for personal service of a summons or the court in its
discretion may prescribe alternative methods of service calculated to provide actual notice to respondent.
The notice of hearing served upon the respondent shall be signed by claimant or the attorney for claimant
and shall provide, at a minimum, the following information in substantially the following language:
"NOTICE OF HEARING
Court action has been taken which affects the following property:
[list property]
[Claimant] (hereinafter "claimant") has claimed that claimant is entitled to this property and that claimant's
interest in this property would have been harmed unless this court took immediate action.
You have a right to challenge claimant's claims at a hearing before a judge. This hearing has been
scheduled for the ........ day of ..........., .........., at .......... o'clock ..M., at [place] ...........................
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After this hearing the judge will decide, what should be done with the property pending a final decision
on claimant's claim."
History: 1979 c 18 s 4; 1998 c 254 art 1 s 107
565.25 BONDING REQUIREMENTS.
Subdivision 1. Order of seizure of property. An order for seizure of property from the respondent shall
provide that the seizure shall be contingent upon claimant's filing of a bond approved by the court conditioned
for the return of the property to the respondent, if a return be adjudged, and for the payment to the respondent
of any sum adjudged against the claimant. The bond shall be in an amount which is 1-1/2 times the fair
market value of the property seized.
Subd. 2. Bond. (a) Except as otherwise provided in paragraph (b) and section 565.251, the respondent
may retain or regain possession of the property by filing of a bond approved by the court conditioned that
the property shall be delivered to the claimant, if delivery be adjudged, and for the payment to the claimant
of any sum adjudged against the respondent. The bond shall be in an amount 1-1/4 times the fair market
value of the property or 1-1/2 times the amount of the claimant's claim, whichever is less. An order for
seizure may specify a time limitation within which the bond must be filed. For the purpose of protecting or
preserving the property pending final hearing on the merits, the court may in extraordinary circumstances,
which shall be specified in its order, provide that the respondent may not retain or regain possession of the
property upon rebonding, or may limit or condition the right to retain or regain the property upon rebonding.
The costs of regaining possession of the property from the sheriff or the claimant shall be borne by respondent
except as set forth in paragraph (b).
(b) If at a hearing following seizure of property pursuant to section 565.24 claimant fails to establish a
right to continued possession, the court shall order the property returned to respondent, the costs to be borne
by claimant. The court may order claimant's bond to continue in an amount sufficient to offset damages
claimed by respondent by reason of the seizure.
Subd. 3. Fair market value. The current fair market value of the property shall initially be presumed
as stated in the affidavit submitted pursuant to section 565.23, subdivision 1. If the court determines the
current fair market value of the property is different, it shall adjust the required amount of the bonds.
Subd. 4. Deposit with court. In lieu of filing a bond, either claimant or respondent may satisfy bonding
requirements by depositing with the court cash, a cashier's check, or a certified check.
History: 1979 c 18 s 5; 1985 c 306 s 8
565.251 POSSESSION BY RESPONDENT WITHOUT BOND; STAY OF PROCEEDING.
The court may allow the respondent to retain or regain possession of the property without filing a bond
and may stay the action by the claimant for a reasonable period of time not to exceed six months if the
following conditions are met:
(1) the respondent is unable to make the required payments due to unforeseen economic circumstances
beyond the respondent's control;
(2) the respondent is dependent on the use of the property to earn a living;
(3) the respondent insures the property for its fair market value;
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(4) the respondent makes periodic payments to the claimant representing the depreciation in market
value of the property while the respondent retains possession, in an amount and during the times determined
by the court; and
(5) the respondent makes periodic payments to the claimant representing the value of the use of the
property or the cost to the claimant of the lost opportunity to use the property, in an amount and during the
times determined by the court.
History: 1985 c 306 s 9
565.26 ORDER FOR SEIZURE OF PROPERTY.
Subdivision 1. Seizure order requirements. An order for seizure of property shall:
(1) identify the property to be seized;
(2) direct the sheriff to seize the property; and
(3) specify that the claimant is authorized, immediately or after a specified reasonable period of time,
to sell or otherwise dispose of the property pending final hearing on the merits unless the court makes a
specific finding that the interests of respondent cannot be adequately protected by the bond.
Subd. 2. Order entry. An order for seizure of property may:
(1) describe the place or places which may be entered by force by the sheriff subject to the limitations
of clause (3);
(2) require that the respondent, the respondent's agents or employees deliver the property to claimant
or disclose its location, and, if delivery is not made or the location is not disclosed, that respondent must
appear in court at a specified time and place to give testimony as to the location of the property and to show
cause why an order should not be entered finding respondent in contempt of court for failure to deliver the
property or to disclose its location; and
(3) provide that if the property, or any of it is concealed in a building or elsewhere, and a public demand
made by the sheriff for its delivery is refused or there is no response, the sheriff shall cause the building or
enclosure to be broken open and shall take the property therefrom. The sheriff may not enter the residence
of a person other than respondent unless the order specifies, identifying with particularity the residence or
residences which may be entered, on the basis of a finding by the court that probable cause exists to believe
that the property is at this residence.
History: 1979 c 18 s 6; 1986 c 444
565.27 SUFFICIENCY OF SURETY.
A person asserting a claim to property seized by order of the court may by motion challenge the
sufficiency of the surety for the bond filed with the court. If the court finds the surety insufficient, it may
grant a reasonable time for the filing of another bond.
History: 1979 c 18 s 7
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565.28 FEES TO SHERIFF.
Upon taking property pursuant to an order of the court, the sheriff shall keep it in a secure place and
shall deliver it to the party entitled thereto as soon as reasonably possible upon receiving lawful fees and
expenses for taking and keeping the property.
The sheriff shall promptly return, without cost, any property taken which is not specified in the court's
order.
History: 1979 c 18 s 8; 1986 c 444
565.29 ADVANCEMENT ON CALENDAR.
A motion for advancement on the calendar or for a date certain for final hearing on the merits may be
presented at any time and may be combined with any other motion and the court may advance the case or
set a date certain as the ends of justice require.
History: 1979 c 18 s 9
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