The Delaware Court of Chancery, in Borealis Power Holdings, Inc., et al. v. Hunt Strategic Utility Investment, LLC, C.A. No. 2019-0582-SG, memo. op. (Del. Ch. Jan. 22, 2020), found an LLC member’s right of first refusal in the sale of another member entity’s LLC units included sale of the other member entity’s equity under the definition of “Transfer” in the LLC Agreement. The Delaware Supreme Court, in Borealis Power Holdings, Inc., et al. v. Hunt Strategic Utility Investment, LLC, No. 68, 2020, opinion (Del. May 22, 2020), reversed the Court of Chancery’s conclusion that the definition of “Transfer” in a right of first refusal to purchase LLC units encompassed a sale of equity in a unitholder’s holding company.
NEW: Francis Pileggi discusses the decision in Supreme Court Interprets Key Words in Agreement.
Stinson discusses the decision in Delaware Supreme Court Holds Indirect Equity Holders Not Bound by ROFR.
$$$ Law360 discusses the decision in Sempra Wins Chancery Fight For Hunt Share Of Texas Utility.