Lewis Brisbois Commercial Litigation Team Secures Order Vacating Delaware Chancery Court Ruling Against Solar Energy Client
Wilmington, Del. (August 19, 2021) - A cross-office team of Lewis Brisbois commercial litigation attorneys, including Fort Lauderdale Managing Partner Michael G. Platner, Wilmington Managing Partner Francis G.X. Pileggi, Fort Lauderdale Partner Vincent F. Alexander, and Wilmington Associates Chauna A. Abner and Cheneise V. Wright, recently convinced the Delaware Supreme Court to vacate a decision by the Chancery Court to toss a books and records demand filed by firm client SolarReserve CSP Holdings LLC after its appellate right was stymied by the other party's bankruptcy filing.
As reported in the Law360 article titled "Del. Justices Vacate Tonopah Solar Project Books Ruling," the Delaware Supreme Court held that it was obliged to vacate the lower court's ruling based in part on the effect of the bankruptcy filing by Tonopah Solar Energy LLC, which occurred six days after the Chancery Court's ruling in Tonopah's favor and provided Tonopah with an automatic stay blocking SolarReserve's appeal. The Chapter 11 restructuring agreement saw Tonopah and solar plant project contractor, Cobra Thermosolar Plants Inc. agree to settle claims against one another in connection with the idle 110-megawatt Crescent Dunes concentrating solar plant in west central Nevada.
Tonopah had argued that SolarReserve had lost its right to pursue the case after assigning its rights to creditor CMB Infrastructure Investment Group IX, LP. However, CMB then pursued a $90 million damages claim in Nevada district court, which is still pending. Chief Justice Collins J. Seitz Jr., writing for a three-justice panel, noted, "According to the parties, there is litigation involving some of the same or related entities and issues in Nevada. It would be contrary to the interests of justice for the unappealable Court of Chancery decision to have precedential or preclusive effect in these circumstances,"
Additionally, Mr. Alexander had argued that the Chapter 11 plan was "patently unconfirmable" due to failures to address the potential claims of SolarReserve and CMB. He also questioned the plan's ability to complete necessary repairs to the problems that had idled the Crescent Dunes operation.
Mr. Platner is chair of the firm's national Corporate Practice and co-chair of its Securities & Corporate Finance Practice. He works with clients to develop and execute business-savvy legal strategies for businesses, from early stage through maturity and sale or merger, with a view toward maximizing benefit to their owners and investors.
Mr. Pileggi is a member of the firm's Complex Business & Commercial Litigation Practice. His litigation practice emphasizes representation in high-stakes disputes of corporations, stockholders, members of boards of directors, members and managers of LLCs, and those with managerial or ownership interests in other forms of entities.
Mr. Alexander is a member of the firm's Bankruptcy & Insolvency and Complex Business & Commercial Litigation Practices. He has extensive experience in bankruptcy reorganizations and liquidations, out-of-court restructurings, asset sales, and bankruptcy- and insolvency-related litigation and regularly represents various parties in bankruptcy proceedings and related litigation.
Ms. Abner and Ms. Wright are both members of the firm's Complex Business & Commercial Litigation Practice. Their practice focuses on litigating high-stakes disputes between corporations and stockholders, and members and managers of limited liability companies, and other forms of entities.
Learn more about Lewis Brisbois' Complex Business & Commercial Litigation Practice here.