DISCLAIMER: The following unofficial case summaries are prepared by the clerk's office
as a courtesy to the reader. They are not part of the opinion of the court.
062789P.pdf 05/02/2007 Katun Corp. v. Terence Clarke
U.S. Court of Appeals Case No: 06-2789
U.S. District Court for the District of Minnesota - Minneapolis
[PUBLISHED] [Murphy, Author, with Wollman and John R. Gibson,
Circuit Judges]
Civil case - contracts. It does not clearly offend public policy to permit
a purchaser to protect itself from the consequences of actions, legal or
illegal, taken prior to its acquisition of a company; because the
indemnification provision at issue in this case did not create the kind of
negative incentives normally associated with attempts to insure against
penal sanctions and because a contract should not be voided absent an
unmistakable violation of public policy, the court cannot conclude that
the plaintiff's claim for indemnification was an illegal demand or patently
in violation of public policy, and the district court erred in dismissing
this action; because the settlement agreement between the parties was not
part of an illegal scheme, plaintiff's claim is not barred by the doctrine
of in pari delicto.