Affiliated Offices

Key Reversal Obtained in Eighth Circuit Court of Appeals

October 04, 2012

In certain CAM (Common Area Maintenance) litigation pending more than seven years between Best Buy and DDR (and other related entities), Kaufman & Company was successful in reversing a grant of summary judgment with respect to the charging of certain insurance coverage costs under fifteen different leases with Best Buy. According to the Eighth Circuit Court of Appeals, the fact that Best Buy knew of the subject insurance program, asked for documents regarding insurance charges, but continued to pay the charges, were all facts supporting the question as to whether Best Buy “knew the ramifications of the [insurance] program and acquiesced to its use.” As a result of the win in the Court of Appeals, the case was remanded to the District Court for further proceedings on key affirmative defenses for the majority of the lease years at issue. Previously, the District Court had granted summary judgment in favor of Kaufman & Company’s clients on all of Best Buy’s other attempted claims of breach of fiduciary duty and fraud, and denied Best Buy the right to allege any punitive damages. After the remand, the parties reached an out of court settlement.
Kaufman & Company, LLC