Publication Date: 2021-12-21
Practice Area: Mergers and Acquisitions
Industry: Hospitality and Lodging
Court: Delaware Supreme Court
Judge: Justice Seitz
Attorneys: For plaintiff: Raymond J. DiCamillo, Kevin M. Gallagher, Sarah A. Clark, John M. O’Toole, Richards, Layton & Finger, P.A., Wilmington, DE; Theodore N. Mirvis, William Savitt, Sarah K. Eddy, Ryan A. McLeod, Wachtell, Lipton, Rosen & Katz, New York, NY; Theodore B. Olson, Amir C. Tayrani, Gibson, Dunn & Crutcher LLP, Washington, D.C.; Adam H. Offenhartz, Marshall R. King, Gibson, Dunn & Crutcher LLP, New York, NY for appellant.
for defendant: A. Thompson Bayliss, Michael A. Barlow, April M. Kirby, Stephen C. Childs, Abrams & Bayliss LLP, Wilmington, DE; Kathleen M. Sullivan, Michael B. Carlinsky, William B. Adams, Christopher D. Kercher, Rollo C. Baker IV, Todd G. Beattie, Jonathan E. Feder, Quinn Emanuel Urquhart & Sullivan, LLP, New York, NY; Kap-You Kim, Peter & Kim Attorneys at Law, Seoul, South Korea for appellees.
Case Number: D69651
Seller of hotel businesses breached ordinary course covenant by making material changes to operations in response to the COVID-19 pandemic, where the covenant did not contain a material adverse event exception and where seller failed to obtain buyer's consent to the changes.