Joseph Rued, Appellant, vs. Commissioner of Human Services, Respondent.
A22-1420
STATE OF MINNESOTA IN SUPREME COURT
October 23, 2024
Procaccini, J.
Took no part, Hennesy, Gaitas, JJ. Court of Appeals Filed: October 23, 2024 Office of Appellate Courts
Ronald Hocevar, Scott County Attorney, Todd P. Zettler, Assistant Scott County Attorney, Shakopee, Minnesota, for respondent Scott County.
Keith Ellison, Attorney General, Mara J. Sybesma, Assistant Attorney General, Saint Paul, Minnesota, for the Minnesota Department of Human Services and the Office of the Minnesota Attorney General.
SYLLABUS
- The 30-day time limit to serve a notice of appeal on an adverse party of record required by
Minnesota Statutes section 256.045, subdivision 7 (2022) , is a waivable limitations period rather than a requirement for subject matter jurisdiction. - Adequate service of a notice of appeal on an adverse party of record under
section 256.045, subdivision 7 , is necessary for a court to obtain personal jurisdiction over the adverse party of record.
Reversed and
OPINION
PROCACCINI, Justice.
This case concerns the requirements for appealing an order of the Commissioner of Human Services (the Commissioner). Any person aggrieved by such an order may appeal to a district court by, among other things, serving a notice of appeal on the Commissioner and any adverse party of record within 30 days.
The decisions by the district court and court of appeals prompt us to examine whether
FACTS
Sometime before January 18, 2022, appellant Joseph Rued made a report to Scott County Health and Human Services (the County) that his son may have been sexually abused. Rued made the report as a voluntary reporter under
Rued requested reconsideration of the no-maltreatment determination under
Rued then appealed the Commissioner‘s decision to Scott County District Court. Under
In August 2022, after the 30-day time limit had expired, the district court held a hearing. Rued and his attorney were present. Although the County had not been served with the notice of appeal, an assistant Scott County attorney also appeared at the hearing. Rued argued that he is entitled to a fair hearing under
The district court denied Rued‘s request for appeal. The district court reasoned that the County waived the jurisdictional defect—which the district court treated as a matter of personal jurisdiction—by appearing at the August 2022 hearing. On the merits, the district court held that Rued is not entitled to a hearing to challenge a determination of no maltreatment.
Rued appealed to the court of appeals, arguing that he is entitled to a hearing to challenge the no-maltreatment determination. The County argued that Rued‘s failure to serve the County deprived the district court of subject matter jurisdiction, and the district court should have dismissed Rued‘s appeal for that reason, regardless of the County‘s appearance at the August 2022 hearing. The County argued in the alternative that the district court properly ruled that Rued is not entitled to a fair hearing on the no-maltreatment determination. The County did not separately appeal from or otherwise argue that the district court erred by finding that the County had waived its challenge to personal jurisdiction by appearing at the hearing.
The court of appeals vacated the district court‘s decision, concluding that the district court did not have subject matter jurisdiction over the appeal because Rued did not serve the notice of appeal on the County as prescribed by
We granted Rued‘s petition for review. Following oral arguments, we ordered supplemental briefing from the parties addressing several questions related to our case law distinguishing jurisdictional requirements from ordinary procedural requirements and our case law on administrative appeals. We invited the Commissioner and the Minnesota Attorney General to file briefs expressing their views on the same questions. Both parties filed supplemental briefs responding to our order, and DHS and the Attorney General filed a joint brief.
ANALYSIS
A court‘s jurisdiction consists of two elements: subject matter jurisdiction and personal jurisdiction. Subject matter jurisdiction refers to a court‘s authority to hear and determine cases that are presented to it. Giersdorf v. A&M Constr., Inc., 820 N.W.2d 16, 20 (Minn. 2012). Whether a court has subject matter jurisdiction “generally depends on the scope of the constitutional and statutory grant of authority to the court.” McCullough & Sons, Inc. v. City of Vadnais Heights, 883 N.W.2d 580, 585 (Minn. 2016). And defects in subject matter jurisdiction may be raised “at any time” and cannot be waived or forfeited by a party. Seehus v. Bor-Son Constr., Inc., 783 N.W.2d 144, 147 (Minn. 2010).
Personal jurisdiction, on the other hand, refers to a court‘s power to exercise control over the parties. In re Giem, 742 N.W.2d 422, 427 n.6 (Minn. 2007); see Scarborough v. Principi, 541 U.S. 401, 413-14 (2004). A court generally obtains personal jurisdiction over a defendant through service of process. McCullough, 883 N.W.2d at 590. “Unlike subject-matter-jurisdiction defects, parties can waive personal jurisdiction defects.” Id.
The court of appeals concluded that the district court lacked subject matter jurisdiction over Rued‘s appeal because Rued failed to comply with the 30-day time limit provided in
I.
The threshold issue in this case is whether the district court had subject matter jurisdiction to review the Commissioner‘s order that denied Rued a fair hearing. See
“The existence of subject-matter jurisdiction is a question of law that we review de novo.” Williams v. Smith, 820 N.W.2d 807, 813 (Minn. 2012). To resolve the question before us, we must examine and interpret
A.
We begin by examining the language of the statute under which Rued appealed the Commissioner‘s order. In relevant part,
[A]ny party who is aggrieved by an order of the commissioner of human services... may appeal the order to the district court of the county responsible for furnishing assistance . . . by serving a written copy of a notice of appeal upon the commissioner and any adverse party of record within 30 days after the date the commissioner issued the order and by filing the original notice and proof of service with the court administrator of the district court.
The statute grants district courts subject matter jurisdiction over appeals from orders of the Commissioner. And the language explains that an appeal may be initiated by serving a notice of appeal on the Commissioner and any adverse party of record within 30 days. But the question remains whether compliance with the 30-day time limit is a prerequisite to the district court acquiring jurisdiction. The statute‘s plain language does not answer this question.
In one respect, the language and structure of
But the 30-day time limit can also reasonably be read as non-jurisdictional.
Also absent from subdivision 7 is any mandatory language, such as “must” or “shall.” See
Because the meaning of
The history of
Any applicant or recipient may . . . within thirty days after the date of the decision made by the State Agency, have the decision reviewed by the district court . . . . To render this appeal effective, the applicant or recipient shall, within thirty days . . . serve, by registered mail, a copy of the notice of appeal . . . on the State Agency.
Mason‘s
In 1939, the Legislature amended the statute, removing the jurisdictional hallmark “[t]o render this appeal effective” and the mandatory “shall.”5 In their place, the Legislature added language similar to that of the current statute:
If a decision or determination by the state agency is not, in the opinion of the county agency or applicant or recipient, in conformity with this act, either may within thirty days after such decision appeal from the decision or determination of the state agency to the district court . . . by serving a copy of a written notice of such appeal upon the state agency and adverse party.
Mason‘s
We presume that “the adoption of an amendment is indicative of legislative intent to effect some change in the existing law.” Auto Owners Ins. Co. v. Perry, 749 N.W.2d 324, 328 (Minn. 2008) (citation omitted) (internal quotation marks omitted). By removing the phrase “[t]o render this appeal effective” and the word “shall,” the Legislature likely intended to eliminate any indication that the 30-day time limit represented a jurisdictional requirement. Cf. Champ v. Brown, 266 N.W. 94, 97 (Minn. 1936) (“[A]n amendment substituting ‘may’ for ‘shall’ manifests a clear intent to make the act referred to optional and permissive instead of mandatory.“); see also id. at 98 (“It seems to us that there can be no doubt that the revisers knew the clear distinction in law between the meaning of the mandatory word ‘shall’ as compared with the permissive word ‘may.’ “). Accordingly, the evolution of
Because of our lack of clarity in distinguishing claim-processing rules from jurisdictional requirements, the County finds some support in our case law for its argument that the 30-day time limit is jurisdictional. For example, in Dennis, we relied on “the long-established principle that we adhere strictly to the statutory requirements for appeals from an executive branch agency.” 874 N.W.2d at 435. And in Langer v. Commissioner of Revenue, we stated that “statutory time limits for administrative appeals are to be ‘strictly construed,’ and that such time limits are ‘jurisdictional.’ ” 773 N.W.2d 77, 80 (Minn. 2009) (quoting Kearns v. Julette Originals Dress Co., 126 N.W.2d 266, 269 (Minn. 1964)). But none of those cases arose in the same context or under the statute relevant here. And we decline to extend the principle of strict construction to our interpretation of the requirements to initiate an appeal to a district court under section 256.045, subdivision 7. Cf. Hamer v. Neighborhood Hous. Servs. of Chicago, 583 U.S. 17, 26-27 (2017) (“The mandatory and jurisdictional formulation is a characterization left over from days when we were less than meticulous in our use of the term jurisdictional.” (citation omitted) (internal quotation marks omitted)).
We therefore hold that the 30-day time limit in
Having concluded that the 30-day time limit in
Here, the County challenged Rued‘s untimely service at the August 2022 hearing—the first and only proceeding on the matter. And the parties do not argue, nor does the record suggest, that equitable principles might apply to toll the limitations period. We therefore conclude that the County did not waive its defense by merely appearing at the August 2022 hearing. But neither the district court nor the Court of Appeals squarely considered a defense based on the limitations period. We therefore remand to the district court so that the County may either waive its limitations defense or move for dismissal on that basis.7
II.
We also clarify that the service requirement provided under
Here, the district court properly characterized Rued‘s failure to comply with the service requirement as a defect in personal jurisdiction. The district court further concluded, however, that the County waived insufficient service by appearing at the August 2022 hearing. A party may waive untimely or otherwise inadequate service of process “by submitting itself to
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In sum, the 30-day time limit in
CONCLUSION
For the foregoing reasons, we reverse the decision of the court of appeals and remand to the district court for proceedings consistent with this opinion.
Reversed and remanded.
HENNESY and GAÏTAS, JJ., not having been members of this court at the time of submission, took no part in the consideration or decision of this case.
PROCACCINI, Justice
