In Eurocapital Advisors LLC v. Colburn, 2008 WL 401352 (Del. Ch., Feb. 14, 2008), read opinion here, the Chancery Court decided whether Delaware was the appropriate forum for members of an LLC who also had a case pending against each other in California. Here is the succinct introductory overview by the court in this short letter decision:
In this action between former business associates, the Court is confronted with a familiar question: should the parties’ dispute be resolved here or in California? Defendant Pamela Colburn contends that this Court does not have personal jurisdiction over her; that this Court should exercise its discretion and stay this action in favor of a related action pending in California; and that this action should be dismissed under the doctrine of forum non conveniens. For the reasons that follow, the Court concludes that this action should be stayed
In its decision the court cited to last month’s Citrin opinion (summarized here), for the comment that Chancery frowns on those declaratory judgment suits whose primary purpose is to establish a beachhead in this forum.
There are any number of cases summarized on this blog where Chancery has both stayed some Delaware cases and also allowed other cases to proceed here despite pending cases elsewhere. The analysis is highly factual. For a more entertaining case where Chancery also sent the parties back to California and for the send-off the court quoted a rap song to send the case: "…back to Cali…", see case summarized here.