Showing 2 posts in Declaratory Judgment.
Chancery Dismisses Action for Declaratory and Injunctive Relief for Lack of Subject Matter Jurisdiction on Grounds that the Proposed Declaratory Judgments Would Provide an Adequate Remedy at Law
Qlarant, Inc. v. IP Commercialization Labs, LLC, C.A. No. 2021-0574-MTZ (Del. Ch. Jan. 25, 2022)
Pursuant to an asset purchase agreement, the plaintiff buyer purchased assets from a seller and several of its affiliates. Despite another company asserting that it owned twenty percent of the seller, the agreement represented that the seller had only two individual shareholders. The company that claimed it was a shareholder filed an action in Maryland challenging the asset purchase transaction. In turn, the plaintiff buyer filed an action in the Court of Chancery seeking declaratory judgments that the company was not a shareholder of the seller at the time of the agreement and that the asset-purchase transaction had been validly consummated. The plaintiff also asked the Court to permanently enjoin the company from asserting it was a shareholder of the seller. More ›
Delaware Superior Court Requires Contract Claim Be Plead For Prejudgment Interest To Start To Accrue
This decision has an important warning. A complaint for a declaratory judgment does not alone entitle a plaintiff to a monetary judgment when its interpretation of a contract is upheld and the contract has been breached. Thus when the defendant then pays what is due and thereby negates the plaintiff’s ability to file a breach of contract case, the court will not award prejudgment interest even if the payment is years overdue. In short, add a breach of contract claim to any declaratory judgment complaint.Share