In an unusual case for the Delaware Court of Chancery, in TA Instruments-Waters, LLC, v. Univ. of Conn., C. A. No. 6985-VCL (Nov. 8, 2011), the Court denied the motion of plaintiff TA Instruments-Waters, LLC (“TA”) for an expedited hearing on an application for a preliminary injunction that would block the University of Connecticut from proceeding any further with a request for proposal (“RFP”). Read opinion here.
Starting in November 2010, the University of Connecticut, which was established by the Connecticut General Assembly in 1881 and is regulated by Connecticut law, invited vendors of dynamic shear rheometers (“DSRs”) to submit bids for a contract for the purchase of twelve DSRs. TA participated in the process but it eventually felt that it was not being treated fairly so in October 2011 it filed a TRO to prevent the University from continuing with the RFP or awarding a contract for DSRs. TA also filed a motion to expedite in Delaware.
TA argued that the University solicited proposals in violation of (i) fair bidding requirements imposed by Connecticut law and (ii) the University’s internal purchasing regulations. The University, among other things, raised an issue as to whether the Court of Chancery had jurisdiction over the University. The Court stated that the claims involved implicated the interest of the State of Connecticut and that Connecticut would be the appropriate venue to resolve this dispute. As a result, the Court denied the motion to expedite “out of respect for the superior interests of a sister state.” The Court did note that the case would proceed in Delaware on a non-expedited basis.
Kevin F. Brady of Connolly Bove Lodge & Hutz LLP prepared this summary.