Legal Memorandum: Insider-preference Claims in MN

Issue: What are the specific elements of an insider-preference claim under Minnesota law.

The specific elements of an insider-preference claim are: (1) “a transfer” (2) “made by a debtor” (3) “to an insider” (4) “for an antecedent debt” (5) when the debtor was insolvent, and (6) when “the insider had reasonable cause to believe that the debtor was insolvent.”  Minn. Stat. § 513.45(b). 

Rule 26(b)(1) of the Rules of Civil Procedure should not be used to develop new claims or defenses.  The committee note states:

The rule change signals to the court that it has the authority to confine discovery to the claims and defenses asserted in the pleadings, and signals to the parties that they have no entitlement to discovery to develop new claims or defenses that are not already identified in the pleadings.

Rule 26(b)(1) committee note (emphasis added).

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