Posts from 2014

Court Of Chancery Explains Stay Law On Appeals

In The Matter of the Rehabilitation Of Indemnity Insurance Corporation, C.A. 8601-VCL (January 16, 2014)

A party aggrieved by a trial court's decision may seek a stay while it appeals. To win a stay, it must satisfy the so-called "Kirpat" test, particularly its requirement of irreparable harm absent a stay.  This decision illustrates the analysis of the Kirpat factors.

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Court Of Chancery Enforces Forum Selection Agreement

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 as the forum to resolve disputes ask the non-Delaware court to stay its hand. However, as this decision illustrates, when pressed, a Delaware court will enjoin litigation elsewhere in the right circumstances. One such circumstance is when the party to be enjoined has tried to manipulate the system by taking inconsistent positions on what forum the contract requires. Trickery with the Courts is never a good idea.

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Court Of Chancery Explains When A Lie Is Just A Lie

Touch Of Italy Salumeria & Pasticceria LLC v. Bascio, C.A. 8602-VCG (January 13, 2014)

In this case, the defendant quit his employment, lied to his co-owners about why and then set up a competing business.  However, the LLC agreement did not have any limitation on competing with it. As a result, while the court was quick to condemn the lie, it held that competing was permitted. This is an example of how people in business together often feel there are some unwritten ethical rules that a court will enforce even if they are not part of the parties' agreement.  At least in the area of competition, that is just not so. You need to get it in writing to enforce an obligation to not compete after some one leaves your employment. Of course, this does not mean that there are no fiduciary or other duties that may require a course of conduct not spelled out in writing.  Hence, this decision should not be read too broadly

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Morris James Elects Brett M. McCartney, Eric J. Monzo & David J. Soldo as Partners

 Morris James LLP is pleased to announce that Brett M. McCartney, Eric J. Monzo and David J. Soldo, have been elected partners effective January 1, 2014.  The new partners are part of the Business Representation group in the areas of corporate litigation, bankruptcy and creditors’ rights and commercial litigation.

“The addition of this new group of partners strengthens our ability to offer exceptional service and value to our clients,” said David H. Williams, Managing Partner.  Mr. Williams also congratulated the new partners for the manner in which they have distinguished themselves in the legal community.

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