Chancery Strikes Unclean Hands Defense Lacking Sufficient Nexus To The Claims

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Morris James is a leading provider of sophisticated legal services with 70 lawyers located in six offices throughout Delaware. We are a full service firm helping Delaware corporations, businesses and private clients address complex legal concerns. Our clients-first philosophy, multi-disciplinary approach and collective experience earn us high regard from clients, peers and the business community
Here, the plaintiff claimed that the adoption of pushdown accounting constituted a change to accounting rights that triggered a right to consent under the relevant operating agreement.
United States Accounting and Audit
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Pilot Corp. v. Abel, C.A. No. 2023-0813-MTZ (Del. Ch. Dec. 13, 2023)
Here, the plaintiff claimed that the adoption of pushdown accounting constituted a change to accounting rights that triggered a right to consent under the relevant operating agreement. The defendants asserted that the plaintiff had unclean hands because the plaintiff had manipulated earnings to alter valuation of a put right. The Court found the unclean hands defense inapplicable because the plaintiff's claims were narrow and did not have an immediate direct relation the defense.

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Chancery Strikes Unclean Hands Defense Lacking Sufficient Nexus To The Claims

United States Accounting and Audit

Contributor

Morris James is a leading provider of sophisticated legal services with 70 lawyers located in six offices throughout Delaware. We are a full service firm helping Delaware corporations, businesses and private clients address complex legal concerns. Our clients-first philosophy, multi-disciplinary approach and collective experience earn us high regard from clients, peers and the business community
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