Verdict orders payment to computer forensic expert.

Byline: Barbara L. Jones

When AGA Medical Corporation split with its closely held member, Michael Afremov, AGA retained Mark Lanterman, a computer forensic vendor, to collect, search and deliver electronic evidence. That was in 2002.

Lanterman retained the Afremov/AGA records, and in June 2006 Afremov was indicted on 18 counts of money laundering, mail fraud, conspiracy to commit mail fraud and filing false tax returns.

His defense attorney subpoenaed from Lanterman all documents in his possession. He said that Afremov would pay any costs, including attorney's fees, for producing the documents and that Lanterman should send him the bill.

He did. He sent two invoices, one for $628,737.33 and the other for $178,850, for a total of $807,587.

Fewer than three weeks later, Afremov pleaded guilty to three tax charges. He was sentenced to probation and a fine of $1 million, along with back taxes and penalties. He had been paid about $300 million for AGA.

Afremov and Lanterman are still sparring over the invoice, with Lanterman having won the last round, a jury verdict in Hennepin County of $807,587 (plus interest at 10%). At Minnesota Lawyer's deadline, it was unclear whether this would be the end of the matter.

District Court reversed

After a journey through federal court, Lanterman v. Afremov ended up in Hennepin County District Court in 2012.

Things started to go wrong there for Lanterman, now owner of Computer Forensics Services. Afremov argued that he did not have a contract with Lanterman, that he agreed only to pay "costs" but Lanterman did not break his "costs" out of the bill. He also argued that Lanterman did not have records supporting the bill. The case went to trial in front of Judge Phillip Bush on Lanterman's breach of contract claim. It didn't go well for Lanterman.

After a six-day jury trial, the jury found that there was a contract, that Afremov breached it, and awarded $104,568.75. Bush, saying Lanterman's testimony about the bills was not credible, awarded CFS $103,012 on its unjust enrichment claims and nothing on its promissory estoppel claim. The court previously had granted Afremov judgment as a matter of law on a breach of contract claim, saying there was no meeting of the minds between the parties. Bush said he had "significant doubts" about Lanterman's credibility. The request for $628,737 was unanswered because there was no contract under the judge's order.

The Court of Appeals reversed and remanded for a new trial in...