Skip to content
  • CAREERS
  • CONTACT US
Search
Close this search box.
  • PEOPLE
  • LITIGATION
    • APPEALS
    • COMPLEX COMMERCIAL LITIGATION
    • EMPLOYMENT LITIGATION
    • FRAUD AND FIDUCIARY DUTY
    • FINANCIAL LITIGATION
    • OWNER/SHAREHOLDER DISPUTES
    • PLAINTIFF CONTINGENCY CASES
    • PROFESSIONAL MALPRACTICE
    • REAL ESTATE LITIGATION
    • TRUSTS AND ESTATES LAW
  • SUCCESSES
  • NEWS
  • ABOUT
  • FEE ARRANGEMENTS
Menu
  • PEOPLE
  • LITIGATION
    • APPEALS
    • COMPLEX COMMERCIAL LITIGATION
    • EMPLOYMENT LITIGATION
    • FRAUD AND FIDUCIARY DUTY
    • FINANCIAL LITIGATION
    • OWNER/SHAREHOLDER DISPUTES
    • PLAINTIFF CONTINGENCY CASES
    • PROFESSIONAL MALPRACTICE
    • REAL ESTATE LITIGATION
    • TRUSTS AND ESTATES LAW
  • SUCCESSES
  • NEWS
  • ABOUT
  • FEE ARRANGEMENTS

Will Disproportionate Forfeiture Lead to More Trials?

  • August 27, 2018
August 27, 2018
Minnesota Lawyer – Partner Content
Author: Arthur G. Boylan

For seemingly run-of-the-mill breach of contract cases where someone refuses to pay based on a technicality, things may have just gotten more complicated. After all, the question of whether a particular provision was material and the question of whether the forfeiture is proportionate are likely fact questions reserved for the jury.
The doctrine of disproportionate forfeiture is alive and well—and, based on a recent ruling from the Minnesota Supreme Court—it just may preclude summary judgment. The Minnesota Supreme Court’s holding in Capistrant v. Lifetouch may allow a breaching party to be excused from a breach (so long as the provision breached was not material) and force a non-breaching party to pay up (so long as to do otherwise would be a disproportionate forfeiture). Capistrant v. Lifetouch Nat’l School Studios, Inc., —- N.W.2d —-, 2018 WL 3558943 (July 25, 2018).
The basic facts of the Capistrant v. Lifetouch case are straightforward. When Capistrant retired from Lifetouch, he and his employer had some on-going disagreements. As a result, Capistrant sought a declaratory judgment to confirm his entitlement to around $2.6 million in residual commissions. But, during the discovery, Capistrant revealed that he still had a variety of confidential Lifetouch information. Upon demand, Capistrant returned the information, and further discovery confirmed that Capistrant had not shared the information with any third parties or that Capistrant never intended to use the information to compete. Nevertheless, Lifetouch—relying on an obligation to “immediately” return the information in a decades old agreement—claimed that Capistrant was in breach for failing to “immediately” return the information when his employment ended and, as a result, was not entitled to the $2.6 million.

 

related attorneys

Loading...

Arthur G. Boylan

related practice areas

Loading...
AO-logo-initials

90 SOUTH 7TH STREET, SUITE 3600
MINNEAPOLIS, MN 55402
P 612.349.6969       F 612.349.6996

 

© 2021 ANTHONY OSTLUND LOUWAGIE DRESSEN BOYLAN P.A.
ALL RIGHTS RESERVED.

  • 651•312•6500
  • 651•312•6618
  • People
  • Litigation
  • Successes
  • News
  • About
  • Fee Arrangements
  • Careers
  • Contact
  • People
  • Litigation
  • Successes
  • News
  • About
  • Fee Arrangements
  • Careers
  • Contact
  • PEOPLE
  • LITIGATION
    • APPEALS
    • COMPLEX COMMERCIAL LITIGATION
    • EMPLOYMENT LITIGATION
    • FRAUD AND FIDUCIARY DUTY
    • FINANCIAL LITIGATION
    • OWNER/SHAREHOLDER DISPUTES
    • PLAINTIFF CONTINGENCY CASES
    • PROFESSIONAL MALPRACTICE
    • REAL ESTATE LITIGATION
    • TRUSTS AND ESTATES LAW
  • SUCCESSES
  • NEWS
  • ABOUT
  • FEE ARRANGEMENTS
  • PEOPLE
  • LITIGATION
    • APPEALS
    • COMPLEX COMMERCIAL LITIGATION
    • EMPLOYMENT LITIGATION
    • FRAUD AND FIDUCIARY DUTY
    • FINANCIAL LITIGATION
    • OWNER/SHAREHOLDER DISPUTES
    • PLAINTIFF CONTINGENCY CASES
    • PROFESSIONAL MALPRACTICE
    • REAL ESTATE LITIGATION
    • TRUSTS AND ESTATES LAW
  • SUCCESSES
  • NEWS
  • ABOUT
  • FEE ARRANGEMENTS
search
disclaimer
Linkedin
Join Our Email List

© 2021 ANTHONY OSTLUND LOUWAGIE DRESSEN BOYLAN P.A. ALL RIGHTS RESERVED.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT