When a contract dispute arises, one party may claim the other failed to meet its obligations under the agreement. A breach of contract can lead to a lawsuit. So how do Minneapolis courts approach these cases? Understanding the process can help you protect your interests in contract litigation.
What Constitutes a Breach of Contract in Minnesota?
Parties form an enforceable contract in Minnesota when one party offers terms for an agreement, the other party accepts the terms without modification, both parties have a mutual intent to enter an agreement, and the agreement involves an exchange of consideration (something of value). A breach of a contract occurs when a party fails to fulfill a provision of the agreement. Common examples of violations of contract include:- Non-payment
- Failure to deliver goods or services
- Missing contractual deadlines
- Failure to fulfill a warranty
Filing a Breach of Contract Lawsuit in Minnesota
When a breach of contract claim escalates to litigation, a party may file suit in a Minnesota court, either in a conciliation court for smaller claims or a district court for higher-value claims. After a party files suit, the court will issue a summons to the defendant(s), advising them of the lawsuit and instructing them to file a responsive pleading by a specified deadline. After the parties submit their pleadings, the court will preside over initial motion practice, which may include motions to dismiss the complaint for lack of jurisdiction, improper venue, or failure to allege a plausible breach-of-contract claim. Those initial motions can help determine whether the parties’ allegations or asserted defenses are sufficient.What Happens During Litigation?
During litigation in a breach of contract lawsuit, the court oversees the discovery process, in which parties exchange evidence and depose witnesses to identify the issues in dispute for trial. The court will also resolve the parties’ pretrial motions, which may involve motions to compel the production of evidence in discovery, motions to admit or exclude evidence at trial, or motions for summary judgment, which allow the court to enter judgment if a case has no material disputes of fact. After pretrial proceedings, if the court does not dismiss or grant summary judgment, it will hold a trial where the parties can present their evidence and witnesses to prove their case to the jury or judge. Should the trial result in a verdict for the plaintiff, a Minnesota court may award various forms of relief, such as:- Financial compensation, including compensatory damages, expectation damages, or incidental damages
- Attorney’s fees, if authorized by the contract
- Reformation, which amends the contract to reflect the parties’ mutual understanding
- Rescission, which cancels the contract and puts the parties as close to their pre-contract positions as possible
- Specific performance, which orders a party to fulfill a contractual obligation
