Legal Question in Business Law in Minnesota

Action against breach of distributor agreement

We are a corporation based in Argentina. We have been distributors of a Minnesota-based company for over 20 years. This company unilaterally broke the distribution agreement in 2001 and owes our company a sum of money. Before filing a legal action in Minnesota, we would like to estimate as closely as possible the legal fees and costs. We are not familiar with the different ways of calculating legal fees in the U.S., specifically in Minnesota. If ever possible, we would like to hire an attorney with a fixed-fee method. Thanks.


Asked on 9/07/04, 4:26 pm

4 Answers from Attorneys

Vincent W. King Vincent W. King, PA

Re: Action against breach of distributor agreement

Once the client provides a little bit more information about the case (I would need, for example, to see the contract, invoices, key correspondence, etc.) I can usually provide a fairly detailed stage-by-stage budget based on previous similar cases. Some cases are very complex, making use of a fixed fee arrangement inappropriate. This is because you can never predict what the other side will do...maybe they will try to assert a counterclaim, or perhaps they will try to serve a lot of "discovery" in an effort to discourage you from pursuing the claim. Other cases are more straightforward, making use of a fixed fee or not-to-exceed fee arrangement appropriate. What I sometimes do is give the client a stage-by-stage budget and then agree that I will bill hourly during each stage up to an agreed maximum for that stage. This way, the client knows exactly how much the case could cost at any given point in the suit, and can make intelligent decisions regarding settlement.

If you would like to discuss this further, please feel free to send me an e-mail. I am in Beijing and Seoul on business this week, so (given the time difference) e-mail is probably the most efficient way to communicate.

In any event, good luck to you and if there is anything else I can do, please let me know. Sincerely, Vince King

Standard disclaimer: The comments above are based on limited facts and should not be considered legal advice. We do not have an attorney-client relationship.

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Answered on 9/07/04, 7:54 pm
David Anderson Anderson Business Law LLC

Re: Action against breach of distributor agreement

There is a Minnesota Statute involved with termination of distributor agreements you should be familiar with.

I would charge a flat fee of $ 2,000.00 through filing of court action, and a percentage after that, depending on contract limitations. You may have a short statute of limitations so delay is not advisable.

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Answered on 9/07/04, 8:01 pm
John Fossum Lundblad, Fossum & Zrimsek, L.L.P.

Re: Action against breach of distributor agreement

It would be difficult for anyone to agree to a flat fee without a good prediction of the time and effort involved and much more information. I am sure if you contact someone directly it would be possible to discuss options regarding the fees.

Also, it is important to be aware there are time limits for filing a lawsuit and you may be close if three years have passed. You should make contact with counsel soon.

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Answered on 9/07/04, 5:30 pm
Maury Beaulier612.240.8005 Minnesota Lawyers

Re: Action against breach of distributor agreement

Almost all lawyers bill matters on a hourly rate basis for matters that they handle. Assuming that the matter is a typical, undisputed collection matter, we would estimate that the fees to obtain a judgment would be equal to approximately $2,500.00. This assumes that we send a demand letter, draft and serve a summons and complaint and bring a motion for default judgment.

We would require a signed retainer agreement and retainer deposit of $2,500.00. The fees could be more (or less) depending on the response to the claim.

Please call us at 952.746.2153 or e-mail [email protected]

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Answered on 9/07/04, 6:14 pm


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