Insurance companies’ attempts to prevent the city of Albert Lea from proceeding with an order to demolish the old Farmland plant failed Thursday.

Friday, March 29, 2002

Insurance companies’ attempts to prevent the city of Albert Lea from proceeding with an order to demolish the old Farmland plant failed Thursday.

Following a hearing where counsel for the insurers and city presented their positions, Judge James Broberg issued an order to deny the insurers’ motion by denying their standing to intervene the process.

The insurers asked the court for temporary restraining and injunction orders, while the city contended the companies are not eligible to enter such claims.

Minnesota statutes define that a demolition order is served upon the owner of record, occupying tenant, and lien holders. The law allows any person upon whom the order is served to object to the order within 20 days.

"Nothing in the statutory framework requires that anyone other than those persons and/or entities specifically enumerated receive service on an order for removal," Judge Broberg wrote in his ruling. "Nor, for that matter, does this framework allow for any non-enumerated person and/or entity - in other words, anyone not served – to file an answer."

Dennis D. Fitzpatrick, attorney for the insurers, insisted upon his interpretation of the statute, pointing out the insurers are an interested party to which the order should be served. He also contended that due process, defined in the Minnesota Rules of Civil Procedure, allows the intervention.

But the court dismissed the claim, saying, "Liberally construing a statute is one thing, but overtly adding language is another entirely. The court’s role is not to add provisions to statutes that simply are not there."

City Attorney Steve Schwab refuted the insurance companies’ remark that the demolition order would cause irreparable injury to them.

He stressed that the demolition order has nothing to do with the negotiations between insurance companies and Farmland over insurance proceeds, and will not impair the insurers’ ability in a possible lawsuit against Farmland.

"I do not understand how they are going to be harmed by the order," said Schwab. "They brought experts and took all necessary information to assess the damage."

Broberg took into account the insurers’ fears and ruled that the city’s execution of the demolition order will have no factual or legally binding effect on any future negotiation between the insurance companies and Farmland.

Schwab said the city would proceed with the order unless the insurers appeal the decision. If Farmland fails to comply with the order within 270 days, the city would ask the court for enforcement of the order, he said.

"We are very happy about the result," said Albert Lea Mayor Bob Haukoos.

"The decision encourages us to think that Farmland is looking at Albert Lea very favorably, and the process to get them back will be speeded up."

He plans to visit St. Paul next week to check to status of Farmland remedy bills in the legislature, which include a special tax-increment financing arrangement and a sales-tax exemption for some construction costs.