The Delaware Court of Chancery, in Mary Giddings Wenske v. Blue Bell Creameries, Inc., et al. and Blue Bell Creameries, LP, C.A. No. 2017-0699-JRS, opinion (Del. Ch. Aug. 28, 2019), declined to stay a derivative action brought on behalf of a limited partnership pending investigation by a special litigation committee appointed by the partnership’s sole general partner, which was previously found unable to consider a litigation demand, because its conflicts, as principal, disabled its agents.

K&L Gates discusses the decision in Court of Chancery Holds That Sole, Conflicted General Partner Cannot By Reason of Its Conflict, Delegate Its Otherwise Valid Power to Manage Derivative Litigation.