Introduction - Litigation Bio

Former U.S. Attorney David Lillehaug is well-recognized in the Minnesota legal community. His practice focuses primarily on complex litigation, but he assists clients on a variety of sensitive matters at the intersection of law, business, and government. 

David’s combination of academic credentials, public service, political and non-profit network, and cutting-edge litigation experience is unusual. With this background, David has the rare ability to craft multi-dimensional legal, governmental, and public strategies to meet a client’s business needs.

As part of the firm’s White-Collar & Regulatory Defense Group, and working closely with the firm’s Corporate Governance & Investigations Group, David deals frequently with the U.S. Attorney’s Office, the Minnesota Attorney General’s Office, Minnesota regulators and administrative agencies, county attorneys, and city attorneys. 

Corporations, governmental entities, and campaigns have retained David to perform internal investigations and prepare privileged reports of his findings. 

Using his contacts as U.S. Attorney, he obtains assistance from former federal agents, forensic accountants, computer specialists, and other experts as needed.

Having been the founding chair of the Minnesota State Bar Association’s Construction Law Section, David continues his long-established construction law practice. As a member of the firm’s Real Estate Litigation Group, he represents building owners, contractors, and design professionals in lawsuits, arbitrations, mediations, and governmental proceedings. 

David is also in demand as a mediator. He has resolved real estate, construction, environmental, and regulatory cases. Mediations are by Court referral or private agreement. 

Pro bono work will always be an important part of David’s practice. In litigation commenced in 2003 that continues through 2007, representing numerous religious institutions, he has won major victories in three lawsuits attacking the constitutionality of Minnesota’s so-called “conceal-carry” handgun law. He also takes referrals from the Headwaters Intervention Center in Park Rapids to provide post-divorce litigation assistance to women in greater Minnesota.

Education

• Harvard University, J.D., cum laude, 1979
• Augustana College, B.A., summa cum laude, 1976

Bar Admissions

• Minnesota, 1979
• U.S. District Court, District of Minnesota, 1979
• U.S. Court of Appeals for the Eighth Circuit, 1981
• District of Columbia, 1981 (inactive)
• U.S. District Court, District of Columbia, 1982 (inactive)

Practice Areas

• Litigation
• Real Estate Litigation
• White Collar & Regulatory Defense
• Corporate Governance & Investigations
• Alternative Dispute Resolution
• Construction

Representative Experience

Construction/Complex Litigation

• Pipeline Design Arbitration. Attorney for the owner of a natural gas pipeline, on claims for professional negligence against a pipeline engineering company. After three days of arbitration in Minneapolis, the claims were settled confidentially. Legal issues in the case included:  delegation of design issues to contractors; inspection responsibilities of engineers and contractors; the legal effect of warnings contained in soils reports; and the collateral estoppel effect of an arbitrator’s holdings and award in a previous arbitration between owner and contractor.
• Chemical Plant Claim. Attorney for the owner of a chemical plant that was managed by a major commodities production company. Client made a multi-million dollar claim for damages, including lost production and repair costs, arising out of equipment breakdowns and vapors emitted by the manager’s adjacent plant. Client commenced the dispute resolution process with a demand for mediation, a prerequisite for arbitration. The claim was settled through negotiation by amendment to the management contract. The amendment was worth at least $2.5 million to the client.
• Larson v. Martin & Son Construction and Granite Re, U.S. District Court, District of North Dakota, 2006. Attorney for a heavy equipment and earth moving subcontractor on a road construction project at an Indian reservation. Subcontractor sought to repossess equipment from the bankrupt general contractor and sought damages from the surety. A replevin order was obtained and most of the equipment was repossessed. After considerable discovery, a confidential, mediated settlement was reached between the subcontractor and the surety.
• Witcher Construction Co. v. The Estes II Limited Partnership, et al., Second Judicial District Court File No. C4-89-5693, 465 N.W. 2d 404 (Minn. Ct. App. 1991), and Witcher Construction Co. v. Nicollet Historic Associates L.P., et al., Fourth Judicial District Court File No. 89-7677, 1992 Minn. App. LEXIS 663 (Minn. Ct. App. 1992). Attorney (at a previous firm) for a medium-sized Minnesota general contractor on two million-dollar mechanic’s lien actions against Arizona and New York lenders arising out of renovations of prominent buildings. Organized joint efforts of sixteen contractors. Tried and won the cases in Ramsey County and Hennepin County District Courts. Argued and won the cases in the Minnesota Court of Appeals. Recovered attorneys’ fees.
• Tacoma Federal Courthouse Litigation, Washington State Superior Court, Pierce County, 1993. Attorney (at a previous firm) for a California general contractor on the construction and renovation of the Tacoma Union Station into a federal courthouse. This case involved a variety of claims, counterclaims and cross-claims for construction delay, disruption and change orders. Claims by and against the general contractor totaled $3.5 million. The case was settled after extensive discovery and motion practice and a marathon mediation.
• Carlson Real Estate Co. v. M.A. Mortenson Co., et al., Hennepin County District Court, 1993. Attorney (at a previous firm) for plaintiff, the owner of the 35-story Plaza VII office building and Radisson Plaza Hotel. Claims for installation of several defective roofs. Successfully settled on the eve of trial for an amount that paid for roof replacement.

Mediation

• Retail Store Roof Case. Successfully mediated to settlement a significant claim by a major retailer for damages arising out of the blow-off of a roofing system at a store in Duluth, Minnesota.
• Mixed-Use Project Litigation. Successfully mediated to settlement complex contract and lien claims between and among a developer, construction lenders, title insurers, general contractor, and subcontractors arising out of the construction of a mixed-use project in St. Louis Park, Minnesota.
• Historic Condominium Claims. Successfully mediated to settlement (prior to litigation) claims regarding alleged construction defects and parking rights made by a condominium association against the developer of an historic renovation in St. Paul, Minnesota.
• Downtown Restaurant Lease. Successfully mediated to settlement a breach of lease claim by a major downtown Minneapolis property owner against a national restaurant chain.

Selected Publications & Presentations

• “Managing the Risk of Crime and Fraud in the Construction industry,” National Business Institute, February 2007
• “The Federal False Claims Act and Related Statutes,” Minnesota State Bar Association Construction Law Section,  September 2006
• “Employee Embezzlement: Prevention, Detection, and Cure,” Fredrikson & Byron’s White Collar & Regulatory Defense Focus Newsletter, July 2006
• “U.S. Supreme Court Review,” University of St. Thomas School of Law and The Federalist Society panel, September 2005
• “Criminal Liability in the Construction Industry,” Minnesota State Bar Association Construction Law Section Symposium, June 2005
• “Corporate Integrity and Ethical Cultures: A New Era,” Center for Ethical Business Cultures Panel, March 2005
• “The Role of Construction Lawyers in the Public and Private Sectors,” Minnesota State Bar Association Construction Law Section Symposium, November 2004
• “The University of Michigan Affirmative Action Cases,” Minnesota Department of Human Rights Panel, December 2003
• "Criminalizing Construction?" Fredrikson & Byron's White Collar & Regulatory Defense Focus Newsletter, November 2003
• “Public Policy and Gun Laws,” William Mitchell College of Law and Federalist Society Debate, November 2003
• “Fraud and Abuse Enforcement,” American Bar Association Healthcare Summit, November 2003
• "The Criminal Employee: Will the Company be Indicted, Too?" Fredrikson & Byron's White Collar & Regulatory Defense Focus Newsletter, January 2003
• “Environmental Enforcement: A Case Study,” Minnesota Institute of Legal Education, May 1999

Professional Activities

• United States Attorney for the District of Minnesota, the federal government’s chief prosecutor and civil lawyer, 1994-1998
• Member, White-Collar Crime and Native American Issues Subcommittees of the U.S. Attorney General’s Advisory Committee, 1994-1998
• Ex-officio Board Member, Minnesota County Attorneys Association and Urban County Attorneys Association, 1994-1998
• Board of Directors, Federal Bar Association Minnesota Chapter, 1995-1998
• Founding Chair, Minnesota State Bar Association (“MSBA”) Construction Law Section, 1989-1991
• Governing Council, MSBA Civil Litigation Section, 1987-1990

Judicial Clerkship

• U.S. District Court Judge Harry MacLaughlin, District of Minnesota, 1979-1981

Honors & Distinctions

• “AV” rating by Martindale-Hubbell
• Listed in Who’s Who in American Law, Who’s Who in America, and Who’s Who in the World
• Outstanding Alumnus Award, Augustana College, 2006
• Minnesota State Bar Association Author’s Award, for article on settlement agreements in complex civil cases, 1990
• Mondale Fellow, Hubert H. Humphrey Institute of Public Affairs, University of Minnesota, 1990-1991

Community Involvement

• Advisory Council, American Constitution Society Minnesota Chapter, 2004-2007
• Board of Directors, Growth & Justice, a progressive Minnesota think tank, 2002-2007
• Midwest Leadership Council, Lutheran World Relief, an international relief organization, 2006-2007
• Chair, Crosstown Conference, Minneapolis Synod, Evangelical Lutheran Church in America, 2006-2007
• Co-host, Face 2 Face, a Minnesota Public Television public affairs program, 2001-2005
• Church Council, Edina Community Lutheran Church, 2001-2003
• Board of Directors, Minnesota Justice Foundation, organization supporting pro bono clerkships for law students, 1986-1989