Tag:Personal Jurisdiction

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Can’t Have It Both Ways: Court Grants Grupo México’s 12(b)(2) Motion To Dismiss for Lack of Personal Jurisdiction
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out of the fire? the delaware court of chancery dismisses an action for lack of personal jurisdiction
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CHANCERY COURT HOLDS THIRD PARTY IS LIKELY SUBJECT TO DELAWARE SERVICE OF PROCESS UNDER THE STATE’S LONG-ARM STATUTE AND THEREFORE THE COURT NEED NOT DETERMINE IF ADDITION AS INVOLUNTARY COUNTERCLAIM PLAINTIFF IS PROPER
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CHOICE OF LAW PROVISION IN STOCKHOLDERS’ AGREEMENT INSUFFICIENT TO CREATE PERSONAL JURISDICTION OVER DELAWARE CORPORATION’S FORMER CEO
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Delaware Chancery Court Lacks Personal Jurisdiction Under the LLC Act’s Implied Consent Provision Unless Defendant has “Control” or “Decision-Making” Capability

Can’t Have It Both Ways: Court Grants Grupo México’s 12(b)(2) Motion To Dismiss for Lack of Personal Jurisdiction

By Joanna Diakos and Ian Edwards

In Lacey v. Mota-Velasco, et al. (C.A. No. 2019-0312-SG), the Delaware Court of Chancery (the “Court”) dismissed Grupo México S.A.B, de C.V (“Grupo México”) from a derivative lawsuit filed by a stockholder of Southern Copper Corporation (“Southern Copper”) on the grounds that the Court lacked personal jurisdiction over Mexico-based Grupo México.

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out of the fire? the delaware court of chancery dismisses an action for lack of personal jurisdiction

By: Scott E. Waxman and Chris Fry

In Extell DV LLC v. Van A. Hemeyer and Blue Ledge Resort LLC, No. 2019-0683-SG (Del. Ch. 2020), Extell DV LLC, as majority equity-holder on behalf of three subsidiaries (respectively, the “Plaintiff” and the “Subsidiaries” and together, the “Plaintiffs”), brought suit alleging that the minority equity-holder in the Subsidiaries, Blue Ledge Resort LLC, and its principal, Van Hemeyer (respectively, “Blue Ledge” and “Hemeyer” and together, the “Defendants”) usurped a business opportunity of the Subsidiaries by seeking to purchase real property (the “Property”) in violation of the Subsidiaries’ limited liability company agreements (collectively, the “LLC Agreements”).

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CHANCERY COURT HOLDS THIRD PARTY IS LIKELY SUBJECT TO DELAWARE SERVICE OF PROCESS UNDER THE STATE’S LONG-ARM STATUTE AND THEREFORE THE COURT NEED NOT DETERMINE IF ADDITION AS INVOLUNTARY COUNTERCLAIM PLAINTIFF IS PROPER

By: Scott E. Waxman and Douglas A. Logan

In Lilly Lea Perry v. Dieter Walter Neupert and Cote d’Azur Estate Corporation, C.A. No. 2017-0290-VCL (Del. Ch. Dec. 6, 2017), the Court of Chancery held that the BGO Foundation (the “Foundation”) was a party that should be joined for just resolution of the underlying dispute between Lilly Lea Perry (“Ms. Perry”), the plaintiff, and Dieter Walter Neupert (“Mr. Neupert”) and Cote d’Azur Estate (the “Company”), the defendants. The Court of Chancery also held that because it appeared that the Foundation could be served under the Delaware Long-Arm Statute, it was not necessary for the court to consider adding the Foundation as an involuntary counterclaim plaintiff.

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CHOICE OF LAW PROVISION IN STOCKHOLDERS’ AGREEMENT INSUFFICIENT TO CREATE PERSONAL JURISDICTION OVER DELAWARE CORPORATION’S FORMER CEO

By Shoshannah D. Katz and Max E. Kaplan

By order dated August 4, 2017, Vice Chancellor Slights dismissed the complaint seeking to enforce non-compete and non-solicitation provisions in a stockholders’ agreement in EBP Lifestyle Brands Holdings, Inc. v. Boulbain, C.A. No. 2017-0269-JRS (Del. Ch. Aug. 4, 2017), finding that the Delaware Chancery Court lacked personal jurisdiction over the defendant.  Specifically, the Court held that defendant’s execution of a stockholders’ agreement governed by Delaware law and concerning a Delaware corporation was insufficient to satisfy the statutory and constitutional requirements to establish personal jurisdiction over an individual not resident or transacting business in Delaware.

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Delaware Chancery Court Lacks Personal Jurisdiction Under the LLC Act’s Implied Consent Provision Unless Defendant has “Control” or “Decision-Making” Capability

By Scott E. Waxman and Douglas A. Logan

The Delaware Court of Chancery held that it lacked personal jurisdiction over the defendant because the allegations failed to show that the defendant possessed the necessary “control” or “decision-making” capability required for “material participation” under the Delaware Limited Liability Company Act’s (the “LLC Act”) implied consent provision.

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