Minnesota Medical University, LLC, et al. v. Heritage Construction Companies, LLC, et al.

This case arises from a failed construction project. Petitioners Minnesota Medical University (“MMU”) and its Chief Financial Officer, Philip Keithahn, were found liable for negligent misrepresentation based on representations concerning their expectation that “upon closing of the loan, the project would be funded” and that “there would be $7,000,000 of money for construction after the close.” A claim for negligent misrepresentation must be based on a misrepresentation of past or existing material fact— not expectations and predictions for the future. The questions presented are as follows:

1. Whether a corporation and its officer, personally, may be found liable for negligent misrepresentation based on representations concerning their expectation that funding would become available in the future.

2. Whether the courts below erred in refusing to grant a new trial based on numerous improper and prejudicial references to MMU’s financial condition, where such references constitute “prejudicial error” as a matter of law and where such references were not necessarily involved in determining damages.