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Bassford Remele is a full service litigation firm located in Minneapolis, Minnesota. Founded in 1882, the firm represents local, national and international clients in all areas of civil litigation and dispute resolution.
Case Law Update
Date: June 27, 2008 — Minneapolis, MN
During the week of June 27, 2008, the Minnesota appellate courts released an opinion on the following topic that may be of interest to our clients:
CORPORATIONS - INDEMNIFICATION - GOOD FAITH REQUIREMENT
- Plaintiff’s guilty plea to knowingly and willingly violating federal law did not establish, as a matter of law, that he did not act in good faith for purposes of indemnification under Minn. Stat. § 302A.521, subd. 2(a).
Employer/Defendant denied plaintiff indemnification under Minn. Stat. § 302A.521, subd. 2(a), for plaintiff’s monetary fine and legal fees incurred in defending himself against federal criminal charges. Plaintiff previously pleaded guilty to misdemeanor “aiding and abetting” violations of 42 U.S.C. § 1320a-7b(a)(2) which prohibits knowingly and willingly making a false statement or representation of material fact for use in determining rights to any benefit or payment under a federal health care program. In a state court action, a jury found that plaintiff met the statutory requirements for indemnification, including “acting in good faith,” and was entitled to indemnification from defendant.
The court of appeals reversed, holding that plaintiff’s claim failed because his admission of guilt to federal charges was, as a matter of law, a failure to act in good faith for purposes of Minn. Stat. § 302A.521, subd. 2(a).
The Supreme Court reversed, holding that plaintiff’s unique circumstances, including having never admitted to acting in bad faith, and accepting a guilty plea to avoid serious felony charges, did not, as a matter of law, constitute a failure to act in good faith under the indemnification statute.
Augustine v. Arizant Inc., A06-1238 (Minn. 6/26/08).
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C. Lundberg, C. Morris, K. Putney, R.A. Williams, |
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