Tulum Mgmt. USA LLC v. Casten

Plaintiffs - George Polk, Tulum Management USA LLC, and RED Capital Investments LP - brought this action on behalf of nominal defendant RED Parent LLC against Defendants - certain members of the RED Parent Board of Managers, Recycled Energy Development LLC and RED Investment LLC - alleging breach of fiduciary duty and breach of contract. Earlier, RED Parent filed an action in Illinois in regard to essentially the same facts upon which the Delaware action claims were brought. In the Delaware action, Plaintiffs sought advancement, indemnification, and fees on fees incurred in both the Illinois action and the case at bar. The Court of Chancery denied Defendants’ motion to dismiss in favor of the Illinois action but granted Defendants’ motion to stay in favor of the Illinois action as to the valuation and fiduciary duty claims and retained jurisdiction over the Delaware action, holding (1) the parties and issues in the Delaware and Illinois actions are functionally identical; and (2) the Illinois court is capable of rendering prompt and complete justice. View "Tulum Mgmt. USA LLC v. Casten" on Justia Law