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January 16, 2020 | Delaware Law Weekly

Delaware Senate Confirms Fioravanti to Chancery Court Bench

Fioravanti, an attorney at the Wilmington firm Prickett, Jones & Elliott since 1999 and a director at the firm, is set to fill the vacancy left by former Vice Chancellor Tamika R. Montgomery-Reeves, who became the first black female Justice of the Delaware Supreme Court in November.
3 minute read
January 16, 2020 | Delaware Business Court Insider

Fioravanti Confirmed to Chancery Court

Fioravanti, an attorney at the Wilmington firm Prickett, Jones & Elliott since 1999 and a director at the firm, is set to fill the vacancy left by former Vice Chancellor Tamika R. Montgomery-Reeves, who became the first black female Justice of the Delaware Supreme Court in November.
3 minute read
Sheldon v. Pinto Tech. Ventures, L.P.
Publication Date: 2019-10-23
Practice Area: Corporate Governance
Industry: Health Care | Investments and Investment Advisory | Manufacturing
Court: Delaware Supreme Court
Judge: Justice Valihura
Attorneys:
For plaintiff: Thad J. Bracegirdle, Scott B. Czerwonka, Wilks, Lukoff & Bracegirdle, LLC, Wilmington, DE for plaintiffs.
For defendant: Bruce E. Jameson, Samuel L. Closic, Prickett, Jones & Elliott, P.A., Wilmington, DE; B. Russell Horton, Gary L. Lewis, George Brothers Kincaid & Horton LLP, Austin, TX for Pinto, Rivervest and Bay City Capital defendants. Brian C. Ralston, Jacqueline A. Rogers, Potter Anderson Corroon LLP, Wilmington, DE; Danny David, Rebeca Huddle, Baker Botts L.L.P., Houston, TX for defendants Terry and Walker.
Case number: D68749

Plaintiffs failed to adequately allege the existence of a control group in this breach of fiduciary duty matter, so the chancery court properly dismissed the complaint. Affirmed.

State of Delaware ex. rel. French v. CVS Health Corp.
Publication Date: 2019-10-09
Practice Area: Civil Procedure
Industry: Retail | State and Local Government
Court: Delaware Superior Court
Judge: Judge Wallace
Attorneys:
For plaintiff: Bruce E. Jameson and Samuel L. Closic, Prickett, Jones & Elliott, P.A., Wilmington, DE; Justin S. Brooks and Elizabeth H. Shofner, Guttman & Buschner & Brooks, PLLC, Wilmington, DE for plaintiff-relator.
For defendant: Kenneth J. Nachbar, Michael Houghton, Matthew R. Clark and Barnaby Grzaslewicz, Morris, Nichols, Arsht & Tunnell LLP, Wilmington, DE; Ethan D. Miller, Jason D. Popp and Gavin Reinke. Alston & Bird LLP for CVS Health Corporation. Stephen E. Jenkins, Catherine Gaul, F. Troupe Mickler, IV, Ashby & Geddes, Wilmington, DE for Card Compliant and CardFact defend-ants. Brian E. Farnan , Farnan LLP, Wilmington, DE for Vacation Properties United Ltd. and The Factoring Co.
Case number: D68731

The court dismissed this qui tam action involving an allegedly fraudulent scheme for depriving the state of money it was enti-tled to from unused gift cards.

Wenske v. Blue Bell Creameries, Inc.
Publication Date: 2019-09-11
Practice Area: Corporate Governance
Industry: Food and Beverage
Court: Court of Chancery
Judge: Vice Chancellor Slights
Attorneys:
For plaintiff: Jessica Zeldin, Monhait & Goddess, P.A., Wilmington, DE; Scott G. Burdine and Davie E. Wynne, Burdine Wynne LLP, Hou-ston, TX for plaintiffs.
For defendant: Timothy R. Dudderar, Potter Anderson & Corroon LLP, Wilmington, DE for defendants Blue Bell Creameries, U.S.A., Inc., Jim Kruse, Howard Kruse, Dickson, Rankin, Markwardt, Barhill, Ehlert, MacInerney and Ryan. Srinivas M. Raju and Kelly L. Freund, Richards, Layton & Finger, P.A., Wilmington, DE for defendants Bridges and Paul Kruse. Paul A. Fioravanti, Jr. and John G. Day, Prickett, Jones & Elliott, P.A., Wilmington, DE; Hugh C. Connor II, Michael D. Anderson and Caleb B. Bulls, Kelly Hart & Hallman, LLP, Fort Worth, TX for defendants Blue Bell Creameries, Inc. and Blue Bell Creameries, U.S.A., Inc. Joseph B. Cicero and Gregory E. Stuhlman, Chipman Brown Cicero & Cole, LLP, Wilmington, DE for Blue Bell Creameries L.P. Michael J. Maimone and Jospeh C. Schoell, Drinker Biddle and Reath LLP, Wilmington, DE for Special Litig. Comm. of Blue Bell Creameries, L.P.
Case number: D68701

Agency principles prevented a special litigation committee from having authority to manage this derivative litigation, because the court had previously held that the sole general partner which created the committee had a disabling interest.

Solera Holdings, Inc. v. XL Specialty Ins. Co.
Publication Date: 2019-08-14
Practice Area: Insurance Law
Industry: Automotive | Insurance | Software
Court: Delaware Superior Court
Judge: Judge LeGrow
Attorneys:
For plaintiff: David J. Baldwin and Carla M. Jones, Potter Anderson & Corroon LLP, Wilmington, DE; Peter M. Gillon, Alexander D. Har-diman and Tamara D. Bruno, Pillsbury Winthrop Shaw Pittman LLP, Washington, DC for plaintiff.
For defendant: Gregory F. Fischer and Angelo G. Savino, Cozen O’Connor, Wilmington, DE and Washington, DC for defendants ACE Ameri-can Ins. Co. and Fed. Ins. Co. Carmella P. Keener, Rosenthal, Monhait & Goddess, P.A., Wilmington, DE for defendants En-durance Am. Ins. Co. and Liberty Ins. Underwriters Inc. Ronald P. Schiller, Michael R. Carlson and Matthew N. Klebanoff, Hangley Aronchick Segal Pudlin & Schiller, Philadelphia, PA for Endurance Am. Ins. Co. Scott A. Schechter and Matthew E. Mawby, Kaufman Borgeest & Ryan LLP, Valhalla, NY for defendant Liberty Ins. Underwriters Inc. Bruce W. McCullough, Bodell Bové, LLC, Wilmington, DE for defendant Zurich Am. Ins. Co. Bruce E. Jameson and John G. Day, Prickett, Jones & Elliott, P.A., Wilmington, DE; Tammy Yuen and Kenneth M. McBrady, III, Skarzynski Black LLC , New York, NY for defendant XL Specialty Ins. Co. Kurt M. Heyman and Aaron M. Nelson, Heyman Enerio Gattuso & Hirzel LLP, Wilmington, DE; Scott B. Schreiber and James W. Thomas, Jr., Arnold & Porter Kaye Scholer LLP, Washington, DC for defendant Illinois Nat’l Ins. Co. Stephen F. Dryden, Weber Gallagher Simpson Stapleton Fires & Newby, LLP, New Castle, DE for defendant Hudson Ins. Co. John C. Phillips, Jr. and David A. Bilson, Phillips, Goldman, McLaughlin & Hall, P.A., Wilmington, DE; Geoffrey W. Heineman and Jung H. Park, Ropers, Majeski Kohn & Bentley, New York, NY for defendant Argonaut Ins. Co.
Case number: D68667

The court held that the claimed loss fell within the plain language of the insurance policies, and other factual issues precluded summary judgment.

Mehta v. Mobile Posse, Inc.
Publication Date: 2019-05-22
Practice Area: Mergers and Acquisitions
Industry: Advertising | Investments and Investment Advisory | Software
Court: Court of Chancery
Judge: Vice Chancellor McCormick
Attorneys:
For plaintiff: Marcus E. Montejo and John G. Day, Prickett, Jones & Elliott, P.A., Wilmington, DE for plaintiff.
For defendant: Rafael X. Zahralddin and Jonathan M. Stemerman, Elliott Greenleaf, P.C., Wilmington, DE for defendants.
Case number: D68470

In this case involving a corporate merger, the company and its board were not entitled to judgment on the pleadings where they did not comply with statutory notice requirements regarding appraisal rights.

Smith v. Promontory Fin. Group, LLC
Publication Date: 2019-05-15
Practice Area: Corporate Entities
Industry: Consulting
Court: Court of Chancery
Judge: Vice Chancellor Glasscock
Attorneys:
For plaintiff: David A. Jenkins and Laurence V. Cronin, Smith Katzenstein & Jenkins LLP, Wilmington, DE for plaintiffs.
For defendant: Bruce E. Jameson and Eric J. Juray, Prickett, Jones & Elliott, P.A., Wilmington, DE; Robert M. Cary, Alexander S. Zolan and Robert M. Belden, Williams & Connolly LLP, Washington, DC for defendants.
Case number: D68564

The withdrawing member of a limited liability company was entitled to half the value of the company as of the date of with-drawal, less the amount he owed on his capital account.

Sheldon v. Pinto Tech. Ventures, L.P.
Publication Date: 2019-02-06
Practice Area: Corporate Governance | Securities Litigation
Industry: Investments and Investment Advisory
Court: Court of Chancery
Judge: Vice Chancellor Zurn
Attorneys:
For plaintiff: Thad J. Bracegirdle and Scott B. Czerwonka, Wilks, Lukoff & Bracegirdle, LLC, Wilmington, DE; Jeff Joyce, Joyce & McFarland LLP, Houston, TX for plaintiffs.
For defendant: Brian C. Ralston and Jacqueline A. Rogers, Potter Anderson Corroon LLP, Wilmington, DE; Danny Da-vid and Rebecca Huddle, Baker Botts LLP, Houston, TX for defendants Terry and Walker. Bruce E. Jameson and Samuel L. Closic, Prickett, Jones & Elliott, P.A., Wilmington, DE; B. Russell Horton, George Brothers Kincaid & Horton, L.L.P., Austin, TX for Pinto Tech., RiverVest and Bay City Capital defendants.
Case number: D68451

Defendants' successful effort to enforce a forum selection clause in the court of another state did not preclude them from arguing that a shareholder action was derivative.

Oxbow Carbon & Minerals Holdings, Inc. v. Crestview-Oxbow Acquisition, LLC
Publication Date: 2019-01-30
Practice Area: Contractual Disputes
Industry: Investments and Investment Advisory | Mining and Resources
Court: Delaware Supreme Court
Judge: Justice Valihura
Attorneys:
For plaintiff: Stephen C. Norman and Jaclyn C. Levy, Potter Anderson & Corroon LLP, Wilmington, DE; David B. Hennes, C. Thomas Brown, Adam M. Harris and Elizabeth D. Johnston, Ropes & Gray LLP, New York, NY for plaintiffs Oxbow Carbon & Mineral Holdings, Ingraham Investments, William I. Koch and Oxbow Carbon Investment Co. LLC. Kenneth J. Nachbar, Thomas W. Briggs, Jr. and Richard Li, Morris, Nich-ols, Arsht & Tunnell LLP, Wilmington, DE; R. Robert Popeo, Michael S. Gardener and Breton Leo-ne-Quick, Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C., Boston, MA for plaintiff
For defendant: Oxbow Carbon LLC. Kevin G. Abrams, Michael A. Barlow and April M. Kirby, Abrams & Bayliss LLP, Wilmington, DE; Brock E. Czeschin, Matthew D. Perri and Sarah A. Galetta, Richards, Layton & Finger, P.A., Wilmington, DE; Michael B. Carlinsky, Chad Johnson, Jennifer Barrett, Silpa Maruri, Quinn Emanuel Urquhart & Sullivan, LLP, New York, NY; Christopher Landau, Quinn Emanuel Urquhart & Sul-livan, LLP, Washington, DC for defendant Crestview-Oxbow Acquisition. J. Clayton Athey and John G. Day, Prickett, Jones & Elliott, P.A., Wilmington, DE; Dale C. Christensen, Jr and Michael B. Weitman, Seward & Kissell, LLP, New York, NY for defendant Load Line Capital
Case number: D68441

The plain language of an LLC agreement governed the parties' dispute, and the trial court improperly implied a cove-nant where no contractual gap existed. Affirmed in part, reversed in part.

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