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Court Of Chancery Upholds Limited Review Permitted By LP Agreement

Posted In LP Agreements

In Re K-Sea Transportation Partners LP Unitholders Litigation, C.A. 6301-VCP (April 4, 20120)

This is another example of how an LP agreement may limit the review of a transaction by a court at the request of a dissatisfied partner.  The partnership agreement provided that the GP only needed to act in good faith in approving a sale and defined good faith, in part, as established by reliance on an expert's advice.  Since that was present, the court dismissed the complaint.