News & Analysis as of

Subsidiaries Contract Terms

Latham & Watkins LLP

All’s Well That Ends Well for Keepwell Providers?

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No loss to issuers puts note trustees in the spotlight. The Hong Kong Court of Final Appeal (CFA) has overturned the Court of Appeal’s order that Peking University Founder Group Company Limited (PUFG), as the keepwell...more

Lathrop GPM

Delaware Case Examines Amendment-by-Merger Provision of LLC Act

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On  August 30, 2024, the Delaware Court of Chancery issued an opinion in Campus Eye Management Holdings, LLC v. DiDonato, dismissing a challenge to a merger effecting an amendment to the limited liability company agreement of...more

Morris James LLP

Chancery Finds Non-Compete Unenforceable by Subsidiaries Unless Identified in Agreement

Morris James LLP on

Frontline Techs. Parent, LLC v. Murphy, C.A. No. 2023-0546-LWW (Del. Ch. Aug. 23, 2023) - This non-compete decision reminds drafters to pay careful attention to scope and definitions, in particular language covering the...more

Goodwin

Phantom Equity to the Rescue

Goodwin on

A Summary of HControl Holdings LLC, et al. v. Antin Infrastructure Partners. Defined terms are the battlefield for lawyers. Some terms are well trodden, while others are not. A recent case in the Delaware Court of...more

Kilpatrick

3 Takeaways - Practice Pointers for German Companies Doing Business in the U.S.

Kilpatrick on

German companies are often surprised when they get sued in the U.S. (a) that U.S. courts even have jurisdiction; (b) about the exorbitant amount of damages that are claimed; and (c) about the power U.S. courts have to compel...more

Skadden, Arps, Slate, Meagher & Flom LLP

Court of Chancery Dismisses Consent and Unconscionability Claims Challenging Contract Between Parent and Wholly Owned Subsidiary

On March 30, 2020, in The Chemours Company v. DowDuPont Inc., et al., C.A. No. 2019-0351-SG (Del. Ch. Mar. 30, 2020), the Delaware Court of Chancery issued an important decision reaffirming bedrock principles of Delaware...more

White & Case LLP

Losing the longstop: High Court decision highlights importance of clearly drafted longstop clauses

White & Case LLP on

In Damoco (Bermuda) Ltd and Others v Atlanta Bidco Ltd, the High Court rejected claims as to the longstop date for accounts needed to calculate a contractual payment. Instead, the Court adopted a much narrower interpretation...more

Stinson - Corporate & Securities Law Blog

Delaware Supreme Court Examines Director Liability for Acquisitions

In McElrath v. Kalanick et al, the Delaware Supreme Court examined the liability of directors of Uber for an acquisition.  The case arose out of Uber’s acquisition of Ottomotto LLC.  Otto was founded by Anthony Levandowski, a...more

Polsinelli

Arbitration Award in Favor of Subsidiary Precludes Subsequent Litigation Against Parent

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The Federal Arbitration Act (FAA) endorses and encourages arbitration as a speedier and less costly dispute resolution alternative to litigation. In recent years, however, companies have become increasingly concerned that...more

Orrick, Herrington & Sutcliffe LLP

Personal Jurisdiction/Forum Non Conveniens - The World in U.S. Courts: Summer 2019

Personal Jurisdiction Based on Knowledge of Texas Port of Call and Lack of Objection Even Where Ship Operator Had No Other Texas Contacts or Control Over Destination Carmona v. LEO Ship Management, Inc., US Court of Appeals...more

Jackson Walker

Fifth Circuit Gets Out of the Implied Findings Business

Jackson Walker on

Federal Rule 52(a) requires that when a district court conducts a bench trial, it is obliged to “find the facts specially.” In its recent significant decision in ENI US Operating Co., Inc. v. Transocean Offshore Deepwater...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Louisiana Court Finds Nonsolicitation/Noncompetition Agreement Is Enforceable

When Jay Baker, the vice president of Causin, L.L.C., quit to create a competing business, Causin sued to enforce Baker’s nonsolicitation/noncompetition agreement. Baker defended the claim in part by arguing the agreement’s...more

Dechert LLP

Global Private Equity Newsletter - Winter 2019 Edition: U.S. Carve-Out Transactions: A Fertile Ground for Private Equity Firms

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Driven by the influence of shareholders, activists and competitive market forces, public companies are demonstrating renewed focus on their core businesses. Reductions in the U.S. corporate tax rate from 35% to 21% have...more

White & Case LLP

2018 Half-year in review: M&A legal and market developments

White & Case LLP on

We set out in the attached Newsletter a number of interesting English court decisions and market developments which have taken place in the second half of 2018 and their impact on M&A transactions. This review looks at these...more

Dorsey & Whitney LLP

Loans to U.S. Subsidiaries Should Be Carefully Structured and Documented to Obtain U.S. Tax Benefits

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Canadian companies should carefully structure and document loans and advances to their U.S. subsidiaries. If loans to U.S. subsidiaries are not properly structured and documented, such loans may be recharacterized as equity...more

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