871 N.W.2d 426
Minn. Ct. App.2015Background
- Hinckley Square Associates, a limited partnership that owns federally subsidized apartments, filed an eviction action against tenant Leah Cervene in Pine County district court.
- The property is subject to USDA Rural Housing Service regulations and the parties’ lease, including obligations to recertify tenant income and provide certain notices before eviction.
- Cervene reported income changes and sought rent recertification after hours declined; Hinckley Square issued a retroactive rent increase and later a combined lease-violation/eviction notice.
- At bench trial, Hinckley Square was represented by two nonattorneys (a general partner and the management agent) who examined witnesses and addressed the court.
- Cervene moved to dismiss for lack of licensed-counsel representation under the rule that artificial entities must appear through counsel; the district court denied the motion, reasoning Nicollet Restoration applied only to corporations.
- The Court of Appeals reversed, holding limited partnerships must be represented by licensed counsel in district court and that the nonattorney participation was not a curable defect; the court did not reach Cervene’s substantive defenses.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a limited partnership must be represented by licensed counsel in district court | Cervene: Nicollet Restoration and related precedent require artificial entities to appear only through counsel; applies to limited partnerships | Hinckley Square: Rule applies to corporations (and not to limited partnerships); nonattorney appearance was permissible | Limited partnerships must be represented by licensed counsel in district court absent a court rule allowing otherwise |
| Whether nonattorney participation was a curable defect | Cervene: Nonattorney participation at trial went beyond a curable signature defect and required dismissal | Hinckley Square: Any defect could be cured; trial could stand | Participation was not a curable defect; the action should have been dismissed |
| Whether the court should address tenant’s substantive challenges to notices, rent adjustments, and alleged improper rent increase | Cervene: District court erred on multiple substantive grounds (notice, failure to adjust rent, improper effective date) | Hinckley Square: (not reached on appeal because threshold counsel issue prevailed) | Court did not reach substantive issues because threshold counsel defect required reversal |
Key Cases Cited
- Nicollet Restoration, Inc. v. Turnham, 486 N.W.2d 753 (Minn. 1992) (Minnesota Supreme Court rule that corporations must appear through counsel)
- 301 Clifton Place L.L.C. v. 301 Clifton Place Condominium Ass’n, 783 N.W.2d 551 (Minn. App. 2010) (extended licensed-counsel rule to LLCs)
- Save Our Creeks v. City of Brooklyn Park, 699 N.W.2d 307 (Minn. 2005) (signature by layperson may be curable but a corporation may not appear in court without an attorney)
- Eagle Assocs. v. Bank of Montreal, 926 F.2d 1305 (2d Cir. 1991) (limited partnerships must appear through licensed counsel in federal court)
- Rowland v. California Men's Colony, 506 U.S. 194 (U.S. 1993) (noting lower courts uniformly require licensed counsel for artificial entities in federal court)