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Court Of Chancery Denies Expedited Scheduling

Posted In LP Agreements

In Re K-Sea Transpotation Partners L.P. Unitholders Litigation, C.A. 6301-VCP (June 10, 2011)

This decision on a motion to expedite the scheduling of a challenge to a merger is interesting for its extensive treatment of the merits of the complaint.  In the past, the Court of Chancery has treated motions to expedite more summarily.  Perhaps this indicates a greater focus on the burdens of expedition on the Court and others and a desire to limit expedition to those instances where otherwise a plaintiff would have no real remedy.

The opinion discussed in some detail when the possibility that a monetary judgment will be uncollectable is adequate to warrant expedition.  A real showing that is the case is required, not just speculation.

The opinion's other major holding is that a limited partnership agreement may effectively limit the amount of disclosures that must be given prior to a vote on a proposed merger.