Delaware Business Litigation Report

Delaware Business Litigation Report

Category Archives: Injunctions

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Court Of Chancery Explains Basis To Expedite

Posted in Injunctions
In Re TriQuint Semiconductor Inc. Stockholder Litigation, C.A. No. 9415-VCN (June 13, 2014) This decision explains when the Court of Chancery will expedite an action attacking a proposed merger.  At least a colorable claim must be alleged and in particular a showing of some disqualification on the part of the directors who approved the merger … Continue Reading

Court Of Chancery Issues Novel Injunction

Posted in Injunctions
Numoda Corporation v. Numoda Technologies Inc., C.A. 9163-VCN (March 27, 2014) It is common in a Section 225 action seeking the determination of the composition of a company’s board of directors for the court to issue a status quo order.  Those orders stop the company from taking any actions out-of-the-ordinary course of business until the … Continue Reading

Court Of Chancery Enforces Forum Selection Agreement

Posted in Injunctions
BE&K Engineering Company LLC v. Rocktenn CP LLC, C.A. 8837-VCL (January 15, 2014) Anti-suit injunctions to enforce a choice of forum clause are not always easy to get.  Delaware courts do not like to interfere with other courts jurisdiction.  Instead, they prefer that a party aggrieved by the violation of a contract that selects Delaware … Continue Reading

Court Of Chancery Denies Anti-Suit Injunction

Posted in Injunctions
The North River Insurance Company v. Mine Safety Appliances Company, C.A. 8456-VCG (December 20, 2013) The Court of Chancery has again denied a request for an anti-suit injunction. This time the Court noted that the litigation sought to be enjoined would actually continue by a party not before the Court. Hence, the injunction was not going to … Continue Reading

Supreme Court Upholds Forum Selection Clause

Posted in Injunctions
National Industries Group v. Carlyle Investment Management LLC,  No. 586, 2012 (May 29, 2013) This is an important decision because it upholds the power of the Delaware Court of Chancery to enforce by an injunction the forum selection clause in a contract.  Previously, there was some doubt under the existing case law whether such an injunction … Continue Reading

Court Of Chancery Enjoins Solicitation

Posted in Injunctions
Kallick v. Sandridge Energy Inc., C.A. 8182-CS (March 8, 2013) This is an important decision dealing with a so-called "Proxy Put."  Briefly, a Proxy Put permits creditors to call corporate debt when a new board of directors is elected without the consent of the current board.  This decision applies the reasonableness standard of Unocal rather than … Continue Reading

Court Of Chancery Expands Entitlement To Injunction

Posted in Injunctions
AM General Holdings LLC v. The Renco Group Inc., C.A. 7639-VCN (December 21, 2012) This is an interesting decision because it may extend the circumstances where the Court of Chancery will issue a preliminary mandatory injunction requiring the payment of money.  It is often said, perhaps wrongly, that there is an adequate remedy by the award of damages that … Continue Reading

Court Of Chancery Enjoins Loan Restructuring

Posted in Injunctions
Trilogy Portfolio Company Inc. v. Brookfield Real Estate Financial Partners LLC,  C.A. 7161-VCP (January 13, 2012) This decision is an example of the growing Court of Chancery litigation over enforcement of loan agreements.  The court reviewed the recent deicisions over when to issue an injunction or instead leave the parties to a damages remedy.  Here … Continue Reading

Court of Chancery Enjoins Violation of Non-Compete

Posted in Injunctions
Zrii LLC v. Wellness Acquisition Group, Inc., C.A. 4374-VCP (September 21, 2009). This is an interesting case because of the limitations on the remedy imposed for violating a non-competition agreement. The decision illustrates the rule that no matter how wrong the conduct, the remedy of an injunction will be limited to stopping the competition for … Continue Reading

Court of Chancery Grants Ten Year Injunction

Posted in Business Torts, Case Summaries, Injunctions, Intellectual Property
W.L. Gore & Associates, Inc. v. Wu, C.A. No. 263-N (Del. Ch. September 15, 2006). The extent to which a court will enjoin the violation of a confidentiality agreement covering trade secrets is often questioned. In this decision, the Court of Chancery issued an injunction that for ten years barred the defendant from working in … Continue Reading

Court of Chancery Expands Duty To Act in Good Faith

Posted in Breach of Contract, Business Torts, Case Summaries, Injunctions
Horizon Personal Communications, Inc. v. Sprint Corp., C.A. No. 1518-N, 2006 WL 2337592 (Del. Ch. Aug. 4, 2006). There is no duty that is more often cited and so little understood as that requiring a contracting party to act in good faith and deal fairly with the other contracting parties. In this case the Court … Continue Reading

District Court Enjoins Plaintiff from Initiating Third-Party Proceedings Against Defendants and from Pursuing Global Settlement Strategy in Pending Asbestos Cases

Posted in Business Insurance, Case Summaries, Injunctions
Flowserve Corp. v. Burns Int’l Servs. Corp., C.A. No. 04-1294-JJF, 2006 WL 739886 (D. Del. Mar. 22, 2006). Plaintiff filed a complaint seeking a declaratory judgment of its right to indemnification in asbestos litigation under the terms of a stock purchase agreement executed by its predecessor-in-interest, which had acquired a subsidiary of Borg-Warner Corp. (“BWC”). … Continue Reading

Court of Chancery Denies Motion For Expedited Preliminary Injunction Hearing For Lack of “Colorable Claim” Demonstrating Imminent Irreparable Harm

Posted in Case Summaries, Discovery, Fiduciary Duty, Injunctions, LP Agreements
Madison Real Estate Immobbilien-Anlagegesellschaft Beschrankt Haftende KG v. GENO One Financial Place L.P. and GENO Auslandsimmobilien GmbH, No. Civ.A. No. 1928-N, 2006 WL 456779 (Del. Ch. Feb. 22, 2006). The plaintiff is a German entity organized under that country’s laws, as is the second named German limited liability defendant. The latter party is also a … Continue Reading