A $10 billion suit filed by Enron Corp. against its would-be suitor, Dynegy Inc. of Houston, will be heard in Houston instead of New York. The suit is an adversary action Enron filed in its bankruptcy, which is being heard in New York, alleging Dynegy wrongfully terminated its agreement to acquire Enron last fall and seeking $10 billion in damages for that action. Enron wanted Enron Corp., et al. v. Dynegy Inc., et al. tried in New York, saying the most important factor in determining venue should be the economic and efficient administration of its bankruptcy estate.
But lawyers for Dynegy argued the suit is better tried in Houston than New York because of the convenience of parties and witnesses, and U.S. Bankruptcy Judge Arthur Gonzalez agreed. In an order issued on April 12, Gonzalez, who is presiding over Enron’s Chapter 11, says the evidence weighs heavily in favor of transferring venue to Houston for reasons of efficiency and judicial economy.
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