Most businesses assume the government plays by the rules when it signs a contract. But what happens if the state doesn’t hold up its end of the deal? In Minnesota, a business can sue the state government for breach of contract, but there are strict rules to follow.
The state can be sued under limited conditions
Under the legal doctrine of sovereign immunity, governments are generally protected from lawsuits. However, Minnesota has waived that protection in certain contract cases. That means if your business had a valid contract with a state agency and the state failed to meet its obligations, you may have a legal path forward.
This waiver is outlined in specific statutes, and your claim must fit within those legal limits to move forward.
Your contract must be authorized and lawful
To sue the state, your contract must be properly authorized. That means the state official or agency that signed it had legal authority to do so. If someone without proper authority signed the agreement, even if it looks official, it may not be enforceable.
Courts will also look at whether the contract followed required procedures, including public bidding or legislative approval, if applicable.
Lawsuits go through the Minnesota Court of Claims
You can’t sue the state like you would a private party. Contract claims against the government must go through the Court of Claims or be specially authorized in district court. There are strict deadlines, often requiring you to file within 12 months of the breach. If your business misses that window, you may lose the chance to recover damages, even if the contract was valid.
Suing the state government is possible, but it comes with added steps. Businesses must meet legal requirements, act quickly, and make sure their contract was valid from the start.