Bremer Bank had Dorsey & Whitney LLP, the largest law firm in Minnesota, in its sights for some years in connection with an investment that went South and Bremer lost a lot of money. Dorsey had played a role in the transaction. Dorsey represented an intermediary, Miller & Schroeder, that was soon insolvent. Bremer Bank, an investor, claimed it was a third-party beneficiary of Dorsey’s representation of Miller & Schroeder.
The decisions against Dorsey started with a 100+ page decision by Judge Nancy Dreher in the bankruptcy court in the District of Minnesota. But that decision (affirmed by District Court Judge Donovan Frank) has been reversed on appeal and Dorsey was also vindicated in a companion case in state court (decided in Dorsey’s favor in Hennepin County District Court, reversed by the Court of Appeals, reversal vacated by Minnesota Supreme Court). McIntosh County Bank v. Dorsey & Whitney, LLP (McIntosh I), 726 N.W.2d 108 (Minn. Ct. App. 2007), rev’d in part, 745 N.W.2d 538 (Minn. 2008).
On a quick review, it appears that the 8th Circuit has now gotten Dorsey out of the danger zone for good. Leonard et al. v. Dorsey & Whitney LLP. Eight Cir. Ct. File Nos. 07-2242, 07-2258, 07-2261, 07-2260 (January 15, 2009).