Court provides path for former Minnesota Rusco customers seeking recovery

Recent order from U.S. Bankruptcy Court Order establishes new procedures providing Minnesota customers harmed by Minnesota Rusco’s abrupt closure an easier process to pursue claims and seek recoveries through Minnesota DLI Contractor Recovery Fund

Only Minnesota residents may apply to Contractor Recovery Fund, strongly encouraged to do so by July 1

May 22, 2026 (SAINT PAUL) — Minnesota Attorney General Keith Ellison announced today that the United States Bankruptcy Court for the District of Delaware has approved a new procedure to make it easier for Minnesota Rusco consumers to pursue claims and seek recoveries from the Minnesota Department of Labor and Industry (DLI) Contractor Recovery Fund.

In order to apply for potential reimbursement through DLI’s Contractor Recovery Fund, harmed consumers must first file a claim in Conciliation Court or District Court, win judgment from that court, then submit a claim along with that judgment to the Contractor Recovery Fund. However, in the case of Minnesota Rusco, that claim-filing process has been complicated by the ongoing bankruptcy action that imposes an automatic stay on lawsuits seeking to recover money from Minnesota Rusco.

The new approved procedure will make lifting the stay easier for consumers, including those who wish to proceed without hiring an attorney.

Thanks to the Bankruptcy Court’s recent order, harmed Minnesota Rusco consumers can now save time and more quickly request a lift of the stay without hiring an attorney to file a claim and be able to pursue reimbursement through the Contractor Recovery Fund simply by:

  1. completing this Declaration, and
  2. sending it to counsel for the court-appointed Trustee for the Rusco bankruptcy, either by:
    1. email to gtaylor@ashbygeddes.com,
    2. or U.S. Mail to Ashby & Geddes, P.A., 500 Delaware Avenue, 8th Floor, Wilmington, Delaware 19899, Attn: Gregory A. Taylor, Esq.
  3. Counsel for the Trustee will then file the Declaration with the Court on behalf of the consumer. After that, any party of interest has 10 days to object to the lifting of the automatic stay.
  4. If no party objects within 10 days of service, the court will lift the automatic stay for that former Minnesota Rusco customer, and they can proceed with seeking a judgment in Conciliation Court or District Court.
  5. Once a consumer has received judgment from Conciliation Court or District Court, they may then file for relief with DLI’s Contractor Recovery Fund.

Residents encouraged to apply before July 1, 2026

Individuals seeking to recover money they paid Minnesota Rusco through the Contractor Recovery Fund must be Minnesota residents and are strongly encouraged to apply before July 1, 2026, when the current application cycle closes. The Contractor Recovery Fund has two application cycles a year. Subcontractors and material suppliers impacted by the company’s closure are not eligible to apply.

Funds limited to $550K for claims against Minnesota Rusco

Consumers should be aware that state law sets a limit of $550,000 on the total amount the Contractor Recovery Fund can disburse for claims against any one company. Given the number of homeowners who suffered an out-of-pocket loss due to Minnesota Rusco’s closing, it is likely the collective claims against Minnesota Rusco will surpass that $550,000 maximum disbursement threshold. Eligible homeowners who submit claims during an application cycle may receive a prorated amount back on their claim, and those claims may exhaust the amount of the Contractor Recovery Fund available for future application cycles.

For more information about how to complete and submit an application with the Contractor Recovery Fund, email contractor.recoveryfund@state.mn.us, call 651-284-5057, or visit dli.mn.gov/workers/homeowners/contractor-recovery-fund.

This development is a result of the collaborative efforts of the Minnesota Attorney General’s Office, the Minnesota Department of Labor and Industry, and the bankruptcy Trustee.

Minnesota Rusco’s abrupt closure and bankruptcy

On October 29, 2025, Minnesota Rusco, a 70-year Minnesota home construction company, abruptly ceased all operations, leaving a large number of consumers who had signed contracts and paid sizeable deposits to the company with unfinished work. Though Minnesota Rusco was locally owned for most of its existence, it was sold in 2022 to Renovo Home Partners, which itself is owned by a subsidiary of New York-based BlackRock, the world’s largest asset-manager. On November 3, 2025, Minnesota Rusco filed for Chapter 7 bankruptcy.

On November 21, 2025, Attorney General Ellison issued a consumer alert about Minnesota Rusco’s abrupt closure, along with tips for consumers who had paid Minnesota Rusco for work it did not finish about what records to preserve, how to file a complaint, and how to seek relief with the State’s Contractor Recovery Fund.

Though November’s consumer alert cautioned that the process of seeking relief could be slowed because of Minnesota Rusco’s bankruptcy filing, today’s announcement of a faster and simpler procedure for lifting the stay should lessen the time it will take consumers to go through the process of seeking relief from the Contractor Recovery Fund.

The Attorney General’s Office continues to investigate Minnesota Rusco’s closure.