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Court of Chancery Addresses Claims Involving Distributions In The Alternative Entity Context

Posted In LP Agreements

In re Energy Transfer Equity L.P. Unitholder Litig., Cons. C.A. No. 12197-VCG (Feb. 28, 2017), affirmed March 23, 2017

The case involves the issuance of certain convertible units offered to some, but not all, the limited partnership unitholders, and whether that offering and subsequent issuance violated provisions of the partnership agreement concerning distributions. While the Court of Chancery was unable to resolve the parties’ competing theories on summary judgment, the decision offers insight into how the Court will examine contractual distribution related claims in the alternative entity context.