Tortious Interference – Delaware Docket

Chancery Court Declines to Expand Gentile Doctrine

Jun 03 2021

By: Scott Waxman and Doug Logan

In Dr. Thomas Markusic et al. v. Michael Blum et al. memorandum opinion 200818, the Delaware Chancery Court (the “Court”) declined to extend the Gentile doctrine. In so doing, the Court held that the counterclaims attempting to rely on it had to be dismissed.

Firefly Space Systems, Inc. (“Original Firefly”) was an aerospace startup founded by Michael Blum, Patrick Joseph King, and Thomas Markusic in late 2013 with the aim of launching small-load rockets into orbit. Counterclaim-Plaintiffs Blum, King, Lauren McCollum, Steven Begleiter, Green Desert N.V., Swing Investments BVBA, Bright Success Capital Ltd., and Wunderkind Space Ltd. (collectively, “Original Firefly Investors”) each owned stock in Original Firefly, with Markusic in the role of CEO and sole board member of Original Firefly at all relevant times.

CHANCERY COURT CONFIRMS LIMITED SCOPE OF AUTHORITY OF EXPERT-NOT-ARBITRATOR DISPUTE RESOLUTION PROVISIONS

Mar 07 2019

Annette Becker and Caitlin Velasco

In Ray Beyond Corp. v. Trimaran Fund Management, L.L.C. and The Halifax Group, LLC, Memorandum Opinion, Civil Action No. 2018-0497-KSJM, the Court of Chancery denied a motion for judgment on the pleadings brought by Ray Beyond Corp. (“Buyer”) seeking to specifically enforce a dispute resolution provision referring an escrow dispute to an independent accounting firm as an “expert, not arbitrator” and the related counterclaims. The Court granted the motion for judgement on the pleadings brought by Buyer’s parent affiliate, The Halifax Group, LLC (“Halifax”) on Trimaran Fund Management, L.L.C.’s (“Seller”) third-party claim for tortious interference for refusing to execute a joint instruction to release escrow funds.

CHANCERY COURT VACATES ORDER OF DEFAULT JUDGMENT DUE TO LACK OF SUBJECT MATTER JURISDICTION

Jul 24 2017

By: Annette Becker and Nolan Thomas

In Organovo Holdings, Inc., v. Georgi Dimitrov, C.A. No. 10536-VCL (Del. Ch. June 5, 2017), the Delaware Court of Chancery granted the defendant’s motion to vacate the entry of a default judgment entered against him, holding that the Court did not have subject matter jurisdiction over the case since the remedies sought by plaintiff were not equitable remedies that provided a basis for subject matter jurisdiction. The Court analyzed the means by which the Court of Chancery, a court of equity, could exercise subject matter jurisdiction over a case, and held that none of those existed in this case.

Delaware Chancery Court Asserts Personal Jurisdiction over Third Party Defendants in Connection with Contribution Sought for the Advancement of Legal Fees and Costs

Oct 16 2015

By Annette Becker and Sophia Lee Shin

In Konstantino v. AngioScore, Inc. v. Quattro Vascular PTE Ltd, et al., the Delaware Court of Chancery reviewed a motion to dismiss filed by three Singapore entity defendants seeking dismissal of a third party claim brought by AngioScore, Inc. (“AngioScore”) for lack of personal jurisdiction and by the Singapore entity defendants and a Delaware entity defendant for failure to state a claim for contribution and tortious interference with contract in connection with the manufacture and sale of a competing product. The Court of Chancery denied the third party defendants’ motion in part, holding that the Court had personal jurisdiction over the three Singapore entity defendants under the conspiracy theory of jurisdiction, and that AngioScore stated a claim for contribution from all of the third party defendants, and granted the motion in part, holding that AngioScore had not stated a claim for tortious interference with contract.

NAMA Holdings LLC v. Related WMC LLC, et al., C.A. No. 7934-VCL (November 17, 2014) (Laster, V.C.)

Nov 24 2014

By Joshua Haft and Scott Waxman

In NAMA Holdings, LLC v. Related WMC LLC, The Related Companies, L.P., and WMC Venture, LLC, the plaintiff, NAMA Holdings, LLC (“NAMA”) filed claims against Related WMC LLC (“Related Sub”) for breach of the implied covenant of good faith and fair dealing and against The Related Companies, L.P. (“Related Parent”) and World Market Center Venture, LLC (“WMCV”) for tortious interference with contract. The case originated from a suit filed by Related Sub and WMCV seeking a declaration that they complied with certain of their contractual obligations under the WMCV operating agreement, in which the Delaware Chancery Court granted partial summary judgment in favor of Related Sub and WMCV. In this Memorandum Opinion, the Delaware Chancery Court issued its post-trial decision after a trial on NAMA’s claims for breach of the implied covenant of good faith and fair dealing by Related Sub and tortious interference with contract by Related Parent and WMCV.

The plaintiff’s claims arose out of the development of a retail shopping mall in Las Vegas, Nevada called the World Market Center (the “Center”). In order to develop the Center, Alliance Network, LLC (“Alliance Network”) was formed by Prime Associates Group, LLC, which was owned by Shawn Samson and Jack Kashani, Crescent Nevada Associates, LLC, owned by relatives of Kashani, and NAMA. NAMA contributed 70% of the capital for Alliance Network, but after a dispute over additional needed capital, the project was restructured such that WMCV was formed by Alliance Network and Related Parent, a New York City real estate firm. WMCV had two members, Network World Market Center, LLC, a wholly owned subsidiary of Alliance Network (“Network”), and Related Sub.

Catagory:Tortious Interference