Complex Commercial Litigation Update

July 24, 2018

Publication

In the second quarter of 2018, the Delaware Superior Court’s Complex Commercial Litigation Division (“CCLD”) saw the appointment of Judge Abigail M. LeGrow to the panel.  Judge LeGrow joins judges Mary M. Johnston, Eric M. Davis, and Paul R. Wallace.  Although Judge Carpenter has rolled off the panel, he will continue to oversee his CCLD cases.  The CCLD judges continue to hear cases involving insurance coverage, breach of contract, and business disputes.  In Otto Candies, Judge Wallace reaffirmed the distinction between equitable fraud and legal fraud and the appropriate venue for pursuing such claims in Delaware.  Judge Carpenter granted a motion to amend with months left before trial, thus reinforcing the Court’s firmly established tradition of trying all claims on their merits.  For more information about the CCLD or past issues of this mailing, please visit our website.

Judge Wallace Confirms that Negligent Misrepresentation Claims May Only Be Brought in the Court of Chancery
In Otto Candies, LLC v. KPMG LLP, 2018 WL 1960344 (Del. Super. Ct.), Judge Wallace held that the Delaware Superior Court lacked jurisdiction to hear the dispute because the claims, as pled, sounded in negligent misrepresentation.  The action stemmed from alleged fraud carried out by Oceanografia S.A. de C.V, an offshore oil services company; Citigroup, Inc.; and certain of Citigroup’s foreign subsidiaries.  
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Judge Carpenter Grants Motion for Leave to File Amended Complaint Months Before Trial
In DRIT LP v. Glaxo Group Ltd., C.A. No. N16C-07-218-WCC-CCLD (Del. Super. Ct. Apr. 25, 2018) (ORDER), Judge Carpenter granted the plaintiff’s Motion for Leave to File an Amended Complaint to add an additional count for breach of contract to the litigation.  
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Judge Carpenter Grants Plaintiffs’ Motion for Entry of Final Judgment and Sets Prejudgment Interest
In Verizon Communications Inc. v. Illinois National Insurance Co., 2018 WL 2317821 (Del. Super. Ct.), Judge Carpenter granted the plaintiffs’ motion for entry of final judgment and prejudgment interest pursuant to Rule 58.   
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Judge Wallace Denies Plaintiff’s Motion to Set Judgment Amounts and Prejudgment Interest
In Viking Pump, Inc. v. Century Indemnity Co., 2018 WL 2331990 (Del. Super. Ct.), Judge Wallace denied the plaintiff’s motion to set judgment amounts and prejudgment interest.  This long-running insurance coverage dispute arose from underlying asbestos-related personal injury claims. 
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Judge Davis Grants Motion for Partial Summary Judgment for a Declaratory Judgment Arising from an Insurance Policy Dispute
In WoodSpring Hotels LLC v. National Union Fire Insurance Co. of Pittsburgh, PA, 2018 WL 2085197 (Del. Super. Ct.), Judge Davis granted a Motion for Partial Summary Judgment in an insurance coverage dispute.  In this case, plaintiff WoodSpring Hotels LLC obtained a directors and officers insurance policy (the “Policy”) from defendant National Union Insurance Co. of Pittsburgh, PA.  Subsequently, Extended Stay America, Inc. and ESA Management LLC sued WoodSpring and one of its officers, Ms. Ruby (the “ESA Litigation”). 
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