Sela Investments, Ltd LLP v. J.H.

Supreme Court of Minnesota·Decided June 17, 2026·No. A241380·Published

Opinion

STATE OF MINNESOTA

IN SUPREME COURT

A24-1380

Court of Appeals McKeig, J.

Sela Investments, Ltd LLP, Respondent,

vs. Filed: June 17, 2026 Office of Appellate Courts J.H.,

Appellant.

Christopher T. Kalla, Douglass E. Turner, Hanbery & Turner, P.A., Minneapolis, Minnesota, for respondent.

Elizabeth F. Sauer, Central Minnesota Legal Services, Minneapolis, Minnesota; and

Whitney L. Herold, Max Tsai, Julia D. Zwak, Mid-Minnesota Legal Aid, Minneapolis, Minnesota, for appellant.

Keith Ellison, Attorney General, Madeleine DeMeules, Assistant Attorney General, Saint Paul, Minnesota, for intervenor the Office of the Minnesota Attorney General.

Lawrence McDonough, Samuel Spaid, HOME Line, Bloomington, Minnesota, for amicus curiae HOME Line.

Jessica Szuminski, Housing Justice Center, Saint Paul, Minnesota, for amicus curiae Housing Justice Center.

Kayleen Asmus, Karen Fairbairn Nath, Legal Assistance of Olmsted County, Rochester, Minnesota, for amicus curiae Legal Assistance of Olmsted County.

Elizabeth Warner (Frazier), Walter Burk, Minnesota Assistance Council for Veterans, Saint Paul, Minnesota, for amicus curiae Minnesota Assistance Council for Veterans.

Lisa Hollingsworth, Heather Mendiola, Brianna Boone, Southern Minnesota Regional Legal Services, Inc., Saint Paul, Minnesota, for amicus curiae Southern Minnesota Regional Legal Services, Inc.

Sonja J. Woodward, Volunteer Lawyers Network, Minneapolis, Minnesota, for amicus curiae Volunteer Lawyers Network.

SYLLABUS

To have standing to challenge the constitutionality of a statute, a party must show that the statute has or is about to disadvantage the party’s legal interest or right.

Vacated.

OPINION

MCKEIG, Justice.

In 2023, the Legislature amended Minnesota’s eviction expungement statute to provide that a “court shall order expungement of an eviction case … upon motion of the defendant, if the case is settled and the defendant fulfills the terms of the settlement.” Act of May 19, 2023, ch. 52, art. 19, § 118, 2023 Minn. Laws 810, 1188 (codified as amended at Minn. Stat. § 484.014, subd. 3(a)(7)). Sela Investments, Ltd., LLP, challenged the constitutionality of this statutory provision (“the eviction settlement expungement provision”) by appealing the expungement of a former tenant’s eviction court file. The court of appeals concluded that the eviction settlement expungement provision is facially unconstitutional as a violation of the separation of powers “because it infringes on the judiciary’s inherent authority to decide cases and to manage its own records.” Sela Invs.,

Ltd LLP v. J.H., 22 N.W.3d 181, 183 (Minn. App. 2025). The former tenant, J.H., petitioned for review.

Standing, however, is a threshold issue. And consistent with our precedent, we hold that to have standing to challenge the constitutionality of a statute, a party must show that the statute has or is about to disadvantage the party’s legal interest or right. Here, Sela Investments has not shown that the eviction settlement expungement provision, Minn. Stat. § 484.014, subd. 3(a)(7), has or is about to disadvantage Sela Investments’ legal interest or right. Sela Investments therefore lacks standing to challenge the constitutionality of the eviction settlement expungement provision. Because Sela Investments lacks standing, we lack jurisdiction to reach the constitutional challenge—as did the court of appeals.

Accordingly, we vacate the decision of the court of appeals.

FACTS

Minnesota Statutes section 484.014 provides for the expungement of eviction records held by the judicial branch. The Legislature defined three key terms for purposes of section 484.014:

(1) “expungement” means the removal of evidence of the court file’s existence from the publicly accessible records;

(2) “eviction case” means an action brought under sections 504B.281 to 504B.371; and (3) “court file” means the court file created when an eviction case is filed with the court.

Minn. Stat. § 484.014, subd. 1.

In subdivisions 2 and 3, the Legislature provided the circumstances under which a party may seek expungement of an eviction court file. Under the balancing test provided in Minn. Stat. § 484.014, subd. 2,

[t]he court may order expungement of an eviction case court file if the court finds the expungement is clearly in the interests of justice and those interests are not outweighed by the public’s interest in knowing about the record.

Id. In contrast, subdivision 3 provides specific circumstances under which expungement of an eviction court file must occur. Minn. Stat. § 484.014, subd. 3.

In 2023, the Legislature amended subdivision 3 to expand the circumstances under which a “court shall … order expungement of an eviction case.” Act of May 19, 2023, ch. 52, art. 19, § 118, 2023 Minn. Laws 810, 1188 (codified as amended at Minn. Stat. § 484.014, subd. 3 (Supp. 2023)) (effective Jan. 1, 2024). As relevant here, the Legislature provided that a tenant who was the defendant in an eviction action can obtain a mandatory expungement of the court file “upon motion of [the] defendant, if the case is settled and the defendant fulfills the terms of the settlement.” Minn. Stat. § 484.014, subd. 3(a)(6) (Supp. 2023). This statutory language is now located at Minn. Stat. § 484.014, subd. 3(a)(7). Act of May 24, 2024, ch. 118, § 1, 2024 Minn. Laws 1941, 1942 (effective June 23, 2024) (moving the eviction settlement expungement provision to a new clause (7) and adding a new ground for expungement at clause (6)).

In December 2023, respondent Sela Investments brought an eviction action against appellant J.H. 1 The parties resolved the eviction action through a court-approved

1 Because the district court eviction case against J.H. has been expunged, we limit our discussion of the facts related to the eviction case to only those facts stated in the

settlement agreement later that month. Under the terms of the settlement agreement, J.H. was required to vacate the apartment by January 31, 2024. Neither party disputes that J.H. complied with the settlement agreement by vacating the apartment by that date.

Approximately six months later, J.H. filed a motion for expungement of the December 2023 eviction court file and a supporting affidavit. J.H. sought expungement based on J.H.’s compliance with the settlement agreement under the eviction settlement expungement provision in Minn. Stat. § 484.014, subd. 3, and the discretionary expungement provision in Minn. Stat. § 484.014, subd. 2. A housing court referee recommended the district court order expungement of J.H.’s eviction court file under Minn. Stat. § 484.014, subd. 3, and the district court countersigned the order for expungement.

Sela Investments appealed the expungement order to the court of appeals, challenging the constitutionality of Minn. Stat. § 484.014 under the separation of powers doctrine, the First Amendment, and the common law. Sela Investments’ separation of powers claim rested on the premise that Minn. Stat. § 484.014 interferes with the judiciary’s authority to maintain its own records. The Attorney General intervened to defend the constitutionality of Minn. Stat. § 484.014. Neither J.H. nor the Attorney General challenged Sela Investments’ standing before the court of appeals.

parties’ public filings and in the decision of the court of appeals. The expunged court file remains part of our record, and we have verified the facts stated here against those publicly inaccessible records.

The court of appeals concluded that the eviction settlement expungement provision is facially unconstitutional as a violation of the separation of powers “because it infringes on the judiciary’s inherent authority to decide cases and to manage its own records.” 2 Sela Invs., 22 N.W.3d at 183. The court of appeals reversed and remanded for the district court to determine whether J.H. was entitled to expungement under the balancing test described in Minn. Stat. § 484.014, subd. 2.

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