Not Pictured: Minnesota’s Disfavor Toward Forfeitures–Capistrant v. Lifetouch Nat’l Sch. Studios, Inc., 916 N.W.2d 23 (Minn. 2018)

In Capistrant v. Lifetouch National School Studios, Inc., the Minnesota Supreme Court adopted section 229 of the Restatement (Second) of Contracts (“Restatement Section 229”) to resolve an employment contract conflict that was contrary to Minnesota’s reluctance to enforce forfeitures. In its niche opinion, the majority credits Minnesota’s disfavor of forfeitures but refuses to resolve the contractual dispute as a matter of law. While the Capistrant matter remains unresolved on remand, the court’s decision to integrate Restatement Section 229 creates a precedentially consistent avenue for employees to recover relief from former corporate employers.

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