Companies Hurt by George Floyd Murder Can’t Blame Minneapolis

Business owners who lost money because they happened to operate where George Floyd was killed by a Minneapolis cop have lost a lawsuit alleging the city had essentially taken their property.

The Minnesota Court of Appeals ruled against CUP Foods and other companies that suffered declining income in 2020, the year Floyd died outside their property. Four brothers owned CUP Foods, Southside Electronics, NMA Investments, 3759 Chicago Ave. and Menthol Tobacco.

MINNEAPOLIS, MN - MAY 25: Members of George Floyds family reveal an official street sign marking George Perry Floyd Square on May 25, 2022 in Minneapolis, Minnesota. It has been two years since George Floyd was killed by Minneapolis Police. (Photo by Stephen Maturen/Getty Images)

Business was stunted by memorials, roadblocks and increased violence after Floyd’s killing on May 25, 2020. Citizens created a “No Go Zone” in the area and, despite a $50,000 forgivable loan program for businesses in the area, numbers fell dramatically.

In 2021, CUP Foods’ sales fell 11% from 2019. Menthol’s and Southside’s each went down by half over the same span, and Southside closed in 2023.

A 2024 petition said Minneapolis had unlawfully taken the properties through inverse condemnation and asked for police protection. A trial court said Minneapolis’ actions did not constitute a per se physical taking, regulatory taking or right-of-access taking.

The Court of Appeals said the companies needed to establish the government had failed to perform an official duty imposed by law.

“(T)here is no evidence supporting appellants’ theory that respondents physically appropriated or compelled third-party occupation of their property by placing the concrete barriers and reducing police presence in the area,” Judge Francis Connolly wrote.

“More specifically, there is no evidence showing that respondents physically occupied appellants’ properties, that appellants lost the right to possess their properties, or that they lost the right to exclude others from their properties.”

Connolly added Minneapolis made its decisions for public safety and “strategic restraint amid evolving community tensions.”

MINNEAPOLIS, MINNESOTA - MAY 25: People gather during the Rise and Remember event at George Floyd Square on May 25, 2025 in Minneapolis, Minnesota. Today marks the fifth anniversary of the day George Floyd was murdered by Minneapolis Police, which sparked worldwide protests. (Photo by Stephen Maturen/Getty Images)

The petition argued the lack of police, presence of barricades and inaction on protests led to a loss in value of the companies. The City itself acknowledged the barriers were “harming local businesses.”

But the downturn doesn’t constitute an illegal taking of the properties, the court ruled.

“(A)ppellants’ businesses were not restrained by changes to the property’s zoning or otherwise altered by any legal framework governing its use,” Connolly wrote.

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“Although the barriers and lack of police presence may have resulted in less business, appellants acknowledge that the public still had access to their businesses. And appellants acknowledge that they remained open while the barriers were in place.

“In fact, the barriers were removed after approximately one year. Consequently, this factor does not weigh in appellants’ favor.”

Timeline: George Floyd's Death, Protests, Riots, Arrests, and Chauvin Trial

It was late afternoon on Memorial Day, 2020 and many Minnesotans had observed the normally active weekend hunkered down because of the growing pandemic.

George Floyd drove to a grocery store in Minneapolis and bought some cigarettes. He was accused by employees of making the purchase with a counterfeit $20 bill and police were called. Floyd was still there in his vehicle when two officers arrived. About 10 minutes later, Chauvin and another officer showed up and the situation began to escalate. Chauvin began kneeling on Floyd's neck as he was facedown on the street. Despite repeated pleas from Floyd and a growing crowd of bystanders to remove his knee, Chauvin continued as if frozen in position with no facial expression.

After more than 8 minutes, Chauvin finally stood up and Floyd had become unresponsive. An ambulance was called and a short while later, it was reported Floyd was dead.

A video of the incident slowly spread on social media around the state, the country and the world. Viewers literally watched a man slowly die, repeating "I can't breathe."

The now historic response began the following day.

Gallery Credit: Kim David

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Filed Under: Minneapolis, Twin Cities, George Floyd, lawsuit

Categories: State News