Minnesota Supreme Court rules Web-based “Pay-Day” lender’s emails and Google AdWords targeting Minnesota residents was sufficient for Minnesota Courts to exercise personal jurisdiction

By Mark Azman

In Rilley v. MoneyMutual, LLC, A14-1307 (Aug. 24, 2016), the Minnesota Supreme Court ruled that Minnesota courts could exercise personal jurisdiction over MoneyMutual, a web-based business that matches “pay day” lenders with consumers.

In this class action lawsuit, the plaintiffs alleged MoneyMutual matched consumers with unlicensed lenders in Minnesota, charged illegal interest rates – allegedly 261% to 1,304% – and engaged in other illegal practices. MoneyMutual moved to dismiss the complaint for lack of personal jurisdiction. The plaintiffs opposed the motion, alleging MoneyMutual had sufficient minimum contacts with Minnesota courts to exercise personal jurisdiction. The trial court denied MoneyMutual's motion to dismiss and the Minnesota Court of Appeals affirmed. An appeal to the Minnesota Supreme Court followed.