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Summaries and analysis of recent Delaware court decisions concerning business-related litigation.
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Chancery Declines to Dismiss Second-Filed Delaware Action Because Delaware Forum Selection Clause Preempts McWane
Defendants brought an action in Montana state court against plaintiffs. Plaintiffs later filed this action in the Delaware Court of Chancery, alleging several claims that shared a common nucleus of operative facts with those asserted in Montana. Defendants moved to dismiss or stay the Delaware action under the McWane doctrine, which generally gives deference to a first-filed action in another jurisdiction and authorizes a dismissal or stay of a second-filed Delaware action. More ›
This decision has an extensive discussion of when a Delaware court will stay a matter in favor of litigation in another forum. Its application of the McWane doctrine governing stays of second filed cases is particularly helpful. Under the circumstances of this case, a stay in favor of the foreign jurisdiction was warranted.