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Court of Chancery Explains What Is A Proper Claim Reserve When Dissolving

Capone v. LDH Management Holdings LLC, C.A. No. 11687-VCG (April 25, 2018) - Under the LLC Act, as with the DGCL, an entity planning to dissolve and distribute its assets is required to set aside some reserve of assets to...more

Court Of Chancery Explains Need To Prove Real Damages

Leaf Invenergy Company v. Invenergy Wind LLC, C.A. 11830-VCL (April 19, 2018) - This is an important decision because it points out that the breach of a contract does not always mean damages will be awarded....more

Delaware Superior Court Denies Dismissal On Forum Non Conveniens

Lincoln Benefit Life Company v. Wilmington Trust N.A., C.A. N17C-08-301 ALR (April 5, 2018) - This decision holds that a case will not be dismissed on forum grounds just because it involves the interpretation of another...more

Superior Court Provides Guidance On When A Tort Claim May Be Based On A Breach of Contract

Decisivedge LLC v. VNU Group LLC, C.A. N17C-05-584 WCC CCLD (March 19, 2018) - Too frequently a plaintiff seeks to buttress its case by adding a fraud or tort claim to what is really just a breach of contract....more

Delaware Superior Court Upholds Coverage For Fraud Claim

Arch Insurance Company v. Murdock, C.A. N16C-01-104 EMD CCLD (March 1, 2018) - This decision upholds coverage under a D&O policy for a claim alleging fraud by directors. This is not too surprising as the Delaware...more

Court Of Chancery Awards Fees Under Indemnification Provision

Composecure LLC v. Cardux LLC, C.A. 12524-VCL (February 1, 2018) - Most of this decision deals with when a contract is void or voidable. If the signing is in violation of mandatory provisions in the entity’s governing...more

Court Of Chancery Applies Limitations Outside Of Arbitration

HBMA Holdings LLC v. LSF9 Stardust Holdings LLC, C.A. 12806-VCMR (December 8, 2017) - This decision illustrates the dangers of not following the limited contractual time to file a dispute and instead relying on an...more

Superior Court Explains When Fraud Claims May be Brought

Novipax Holdings LLC v. Sealed Air Corporation, No. N17C-03-1682 (November 28, 2017) - This is an interesting decision because it explains: (1) when a fraud claim may be brought despite anti-reliance provisions in a...more

Superior Court Rules When Fees Recoverable

Clean Harbors Inc. v. Union Pacific Corporation, No. N15C-07-081 MMJ CCLD (Nov. 15, 2017) - When an obligation to indemnify includes the fees incurred in the underlying litigation is a surprisingly frequent question....more

Superior Court Explains How To Prove Fees

The Boeing Company v. Spirit Aerosystems Inc., No. N14C-12-055 EMD CCLD (Dec. 5, 2017) - This decision explains the process and proof required to establish the amount of a fees award....more

Court Of Chancery Favors Plain Language In Earn-Out Dispute And Declines To Imply Contractual Terms

Greenstar IH Rep. LLC v. Tutor Perini Corporation, C.A. No. 12885-VCS (Oct. 31, 2017) - With every contract under Delaware law comes the obligation to not act so as to deprive the counter party of the benefit of its...more

Superior Court Explains The Personal Participation Doctrine

The Washington House Condominium Association Of Unit Owners v. Daystar Sills Inc., C.A. N15C-01-108 WCC CCLD (August 8, 2017) - When is a corporate employee responsible for tortious conduct in that capacity? This decision...more

Court Of Chancery Addresses Material Adverse Change Clause In Commercial Contract

A material adverse change or effect clause permits a party to avoid its contractual obligations under certain circumstances. Delaware courts have addressed so-called “MAC” clauses in the merger agreement context on a number...more

Delaware Superior Court Explains Liability Of Signatory To Contract

This is an excellent review of when a signatory to a contract might be personally liable notwithstanding that he claims to have only signed in a representative capacity. Hint: contractual references to the signatory separate...more

Superior Court Limits Contractual Indemnification To Third Party Claims

This decision holds that a general obligation to indemnify another party to a contract applies only to claims filed by a third party and not to claims between the parties to the contract itself. Hence, if you want to cover...more

Delaware Supreme Court Explains Setoff And Recoupment

This decision explains the difference between a defendant’s right of setoff and recoupment. The key difference is that the right of setoff arises out of an independent transaction, while recoupment must be based on the same...more

Court Of Chancery Holds Release Is Binding On A Non-Signatory

It may surprise many of us to know that a party who does not sign a general release may still be bound by its terms. Yet, that is what this decision holds under this case’s facts, which involved New York law and a release...more

Court Of Chancery Explains Contract Interpretation Rules

This is an excellent primer on the rules that guide the proper interpretation of a contract. While the rules it applies are taught to first year law students, they are too often forgotten by those of us long out of school....more

Court Of Chancery Explains Advancement Rights Of Seller Representative

This is an interesting advancement case as it applies the usual test of whether the former directors have been sued “by reason of the fact” they were directors in the context of suit against former owners’ representative for...more

Court Of Chancery Limits Fiduciary Claims Based On A Contract

A recurring problem in Delaware jurisprudence is whether breach of contract and fiduciary duty claims may proceed simultaneously....more

Court Of Chancery Explains Arbitration Timelines

This decision explains the timelines for seeking to vacate an arbitration award. It illustrates that an arbitration proceeding has its own rules that the parties better understand or lose their rights....more

Court Of Chancery Limits Contractual Right To An Injunction

Practitioners often assume that if they provide a contractual right to an injunction for breach of contract, that the Court is obligated to find such a breach constitutes the irreparable harm that warrants an injunction. Not...more

Supreme Court Upholds Expectation Damages Award For Breach of A Preliminary Agreement

This is an important decision, particularly if it is a precedent that will be followed in other contexts. Basically, the Court has held that expectation damages may be awarded for the breach of even a preliminary agreement...more

Court Of Chancery Explains Partnership Distribution Rights And Power of GP

ESG Capital Partners II L.P. v. Passport Special Opportunities Master Fund L.P, C.A. 11053-VCL (December 16, 2015) This is an interesting decision for 2 reasons. First, the Court explains what might have seemed obvious...more

Court Of Chancery Declines Stay In LLC Advancement Case

Tulum Management USA LLC v. Casten, C.A. 11321-VCN (November 9, 2015) - A Delaware court will not stay its hand in favor of litigation elsewhere in an advancement or indemnification case absent “exceptional...more

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