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Business Associations Keyed to Bainbridge
Elf Atochem North American, Inc. v. Jaffari
Citation:
727 A.2d 286 (Del. Sup. Ct. 1999)Facts
Plaintiff Elf Atochem North America, Inc. manufactures and distributes solvent-based maskants to the aerospace and aviation industries throughout the world. Defendant is the president of Malek, Inc. to avoid conflict with EPA regulations, Elf considered developing or distributing a maskant less harmful to the environment. Elf, Jaffari and Malek, Inc. entered into a series of agreements providing for the governance and operation of the joint venture. Under the arbitration clause contained in the agreement, it provides that any controversy or dispute shall be submitted to arbitration in San Francisco, California. The agreement also contained a forum selection clause, providing that all members consent to exclusive jurisdiction of the courts sitting in California in any action. Elf sued Jaffari and Malek, LLC, alleging that Jaffari breached his fiduciary duty to Malek LLC and breached the contract.
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