In EnVen Energy v. Dunwoody, No 2019-0579-KSJM, 2020 Del. Ch. Lexis 195 (Del. Ch. May 28, 2020), the Delaware Court of Chancery found that a forum selection clause in an employment agreement between the plaintiff and a defendant did not bar venue of the matter in Delaware. At the same time, however, the Court of Chancery concluded that the Delaware action should be stayed pending resolution of a previously filed action in Texas in accordance with the McWane doctrine. While neither result is necessarily surprising, EnVen is notable for the Court of Chancery’s narrow construction of the forum selection clause and its consideration of the identity of claims asserted in parallel state court actions.

Plaintiff EnVen Energy Corp. extracts and produces oil, gas and related hydrocarbons in the Gulf of Mexico. Defendant David Dunwoody co-founded EnVen in 2014 and served as its president until he resigned in June 2019. EnVen alleged that during his tenure as president, Dunwoody engaged in a self-dealing scheme whereby he guaranteed EnVen’s business to defendant Oilfield Pipe of Texas, LLC in exchange for kickbacks paid to his father.

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