Minnesota Appeals Court Affirms that Repeated Oral Representations Preclude Limitations Defense in Hedge Fund Manager’s Claim for Unpaid Bonuses

On December 29, 2009, the Minnesota Court of Appeals affirmed that a hedge fund manager’s claim for overdue, unpaid bonuses was not barred by the statute of limitations because: (1) the owing party orally acknowledged, and thus extended, the due date for the bonuses; and (2) the owing party was equitably estopped from asserting this defense because the manager reasonably relied on those representations when he spent large sums to build a house.  However, the appellate court reversed a $126,352 award of fees and costs to the hedge fund manager, finding that the lower court abused its discretion in awarding those fees and costs.  This article offers extensive detail on the factual background of the case and the court’s legal analysis.

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