Cardiovascular Systems, Inc. v. Cardio Flow, Inc., No. 20-3478 (8th Cir. 2022)
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Cardiovascular Systems, Inc. (“CSI”) brought this action against Cardio Flow, Inc. (“Cardio Flow”), alleging the breach of a settlement agreement that resolved ownership of intellectual property rights related to atherectomy devices. Cardio Flow was not a named party to the settlement, however, and moved for summary judgment on that basis. In response, CSI asserted that principles of equitable estoppel and agency bound Cardio Flow to abide by the agreement.
The district court rejected CSI’s arguments and dismissed its claims and the Eighth Circuit affirmed. The court held that equitable estoppel provides no basis to enforce the settlement agreement against Cardio Flow. The court reasoned that the doctrine of equitable estoppel generally involves some type of misrepresentation. Given the Minnesota Supreme Court’s unequivocal holdings elsewhere that a representation or concealment is essential, the court declined to supplant the usual equitable estoppel elements.
Further, the party who signed the agreement with Plaintiff was not acting as Defendant's agent when she signed the settlement; there was no joint venture between the signer and Defendant, and Defendant did not control the signer's lawsuit against Plaintiff which led to the settlement agreement.
Court Description: [Erickson, Author, with Grasz and Stras, Circuit Judges] Civil case. Equitable estoppel provides no basis to enforce a settlement agreement against defendant, a non-signing party; the party who signed the agreement with plaintiff was not acting as defendant's agent when she signed the settlement; there was no joint venture between the signer and defendant, and defendant did not control the signer's lawsuit against plaintiff which led to the settlement agreement.
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