Legal Memorandum: Limitation-of-liability Clause in MN

Issue: Under Minnesota law, will a contractual limitation-of-liability clause cap damages?

  See Anderson v. United Tel. Co., No. _____ (Minn. Feb. 9, 1981), summarily aff’g Dist. Ct. No. 12430 (8th Jud. Dist. Minn. Mar. 6, 1980) (copies attached).  In Anderson an attorney’s name and address had been omitted from both the white and yellow pages of the Granite Falls telephone directory for the year May 1978 to May 1979.  The parties had no written contract but United conceded an implied contract existed for Anderson as a business subscriber.  A limitation-of-liability clause filed with the Public Service Commission was upheld by the trial court, limiting the attorney’s damages to $269.76.  The supreme court summarily affirmed.

The trial court in Anderson cited a long line of Minnesota authority upholding limitation- of-liability clauses, including Morgan Co. v. Minnesota Mining & Mfg. Co., 310 Minn. 305, 246 N.W.2d 443, 447 (1976) and Independent Sch. Dist. No. 877 v. Loberg Plumbing & Heating Co., 266 Minn. 426, 123 N.W.2d 793, 798-99 (1963).  See also Schlobohm v. Spa Petite, Inc., 326 N.W.2d 920, 296 (Minn. 1982); Komatz Constr., Inc. v. Western Union Tel. Co., 290 Minn. 129, 186 N.W.2d 691, 695-96, cert. denied, 404 U.S. 856 (1971).*FN1

These decisions represent sound Minnesota authority for the proposition that a limitation-of-liability clause is not unconscionable or against public policy.  In Schlobohm the trial court had ruled the clause void or against public […]