Chancery Court Stays Case Under 'McWane' Doctrine
The Delaware Court of Chancery granted a defense motion to stay a case over the valuation of stock and alleged breaches of fiduciary duty in favor of a first-filed complaint in Illinois, ruling under the McWane doctrine that the parties and issues in the two actions were identical and arose out of "the same nucleus of common fact."
December 09, 2015 at 05:56 AM
5 minute read
The Delaware Court of Chancery granted a defense motion to stay a case over the valuation of stock and alleged breaches of fiduciary duty in favor of a first-filed complaint in Illinois, ruling under the McWane doctrine that the parties and issues in the two actions were identical and arose out of “the same nucleus of common fact.”
The Delaware court, however, retained jurisdiction over the case, should the foreign court be unwilling or unable to rule on the claims.
The case, captioned Tulum Management USA LLC v. Casten, involves claims by George Polk, who owns and controls RED Capital Investments and Tulum Management USA, that the officers of RED Parent manipulated their company's capital to further their own personal interests.
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