The Delaware Court of Chancery, in Neurvana Medical, LLC v. Balt USA, LLC, et al., C.A. No. 2019-0034-KSJM, memo. op. (Del. Ch. Sept. 18, 2019), found that a non-signatory’s involvement in contract negotiations did not bind it to the contract as a “closely related” party.
NEW: K&L Gates discusses the decision in Court of Chancery Rules on the Applicability of Forum Selection Clauses to Non-Signatories to a Contract and a Plaintiff’s Burden in Alleging Breach of the “Commercially Reasonable Efforts” Standard.
Sheppard Mullin discusses the decision in Delaware Update: Court of Chancery Declines to Bind a Non-signatory Parent Corporation to Forum Selection Clause.
Morris James discusses the decision in Court of Chancery Clarifies a Plaintiff’s Ability to Bind a Non-Signatory to a Forum Selection Provision.