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INSITUFORM TECHNOLOGIES v INSITU INC Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 17,013, CourtCode: CC, CourtName: IN THE COURT OF CHANCERY OF THE STATE OF DEXJWJ U3E, Plaintiff: INSITUFORM TECHNOLOGIES, State: TN Tennessee, UniqueCaseRef: DE>CC>00017013, Midsouth, It1, License Agreement, Insituform, Partnership, Partnership Agreement, Agreement, Terminate, Arbitration, Insitu, Technology, Southwest, Iti, Termination, Dissolution, Irreparable Harm, Temporary Restraining Order, Counterclaim, Withdraw, Restraining Order, Paragraph, Partner Withdraws, Territory, Hartman Aff, Denies, Admits, Post Office, American, Summary Judgment, Contracts, Obligations, Sub-license, App, License Agreement Permit, Market, Proceeding, Inac, Boothe Llp , ContentID: 120239739

Case Documents
1 1999-04-27 INC. AMENDED REPLY TO COUNTERCLAIM
[ see first page and extracted highlights below  ] ItemID: 103518
9 pages
PDF
2 1999-04-19 MEMORANDUM OPINION
[ see first page and extracted highlights below  ] ItemID: 100300
36 pages
PDF
3 1999-04-13 INC. DEFENDANTS REPLY MEMORANDUM
[ see first page and extracted highlights below  ] ItemID: 102964
12 pages
PDF
4 1999-04-12 INC. PLAINTIFFS REPLY TO COUNTERCLAIM
[ see first page and extracted highlights below  ] ItemID: 103519
8 pages
PDF
5 1999-04-12 INC. PLAINTIFFS BRIEF IN OPPOSITION TO DEFENDANTS MOTION
[ see first page and extracted highlights below  ] ItemID: 102965
38 pages
PDF
6 1999-04-09 INC. DEFENDANTS OPENING BRIEF
[ see first page and extracted highlights below  ] ItemID: 102966
30 pages
PDF
Total Documents: 6 documents , 133 pages
Price: $ 44.95


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1 . INC. AMENDED REPLY TO COUNTERCLAIM

EXTRACTED KEY WORDS
INSITUFORM
PARAGRAPH
DENIES
AGREEMENT
ADMITS
MIDSOUTH
COURT
PARTNERSHIP
LICENSE AGREEMENT
SUB-LICENSE
PLAINTIFF
ARBITRATION
IT1
APPOINT
INSITUFORM TECHNOLOGIES
DEFENDANT
EXHIBIT
CONTROLLING
DISPUTE
MEMBER
PARTIES
ACQUIRING CONTROLLING POSITIONS
PARENT
E-MIDSOUTH
MANAGEMENT COMMITTEE
REPEAT
CHANCERY
COUNSEL
PURSUANT
            IN THE COURT OF CHANCERY OF THE STATE OF DEXJWJ'U3E

                        IN AND FOR NEW CASTLE COUNTY


INSITUFORM TECHNOLOGIES, INC.,

                   Plaintiff,

     V.

INSITU, INC.,                                                          3           c.  :
                                                                                   ci ;`J
                                              C.A. No. 17013%;                     -),,,,D
                                                                 :,' :' '-0
                   Defendant,                                    : .,'j
                                                                 1'1, b.
     and                                                         I.                           i'
                                                                                              ,
                                                                                              :
MIDSOUTH PARTNERS,

                   Nominal Defendant.


            NOTICE OF FILING OF AMENDED REPLY TO COUNTERCLAIM

              PLEASE    TAKE     NOTICE    that    plaintiff,                  Insituform

Technologies, Inc., by its undersigned counsel and pursuant to

Court of Chancery Rule 15, hereby files the following Amended

Reply to Counterclaim.           Attached as Exhibit A is a version

setting forth in what respects the Amended Reply to Counterclaim

differs from the Rep:Ly to Counterclaim.



                               MORRIS, NICHOLS, ARSHT & TUNNELL




                               S. Mark Hurd
                               1201 N. Market Street
                               P.O. Box 1347
SNIPPETS:
  • INSITUFORM TECHNOLOGIES, INC.,
  • Plaintiff,
  • MIDSOUTH PARTNERS,
  • Nominal Defendant.
  • NOTICE OF FILING OF AMENDED REPLY TO COUNTERCLAIM
  • Technologies, Inc., by its undersigned counsel and pursuant to
  • Court of Chancery Rule 15,
  • Denies the allegations contained in paragraph 22
  • Admits the allegations contained in paragraph 23
  • of the Counterclaim, except admits that IT1 is, and until its
  • separate sub-license agreements relating to various Mid-Atlantic
  • Inc. executed a Partnership Agreement forming the
  • respectfully refers the Court to the License Agreement
  • attached as Exhibit:I to the Counterclaim.
  • Process and acquiring controlling positions in certain sublicensees, and that IT1 has since
  • Inc. which was the parent of Enviroq
  • Midsouth and that a dispute arose with respect to Insitu's right
  • Midsouth in place and stead of a member appointed by E-Midsouth.
  • an arbitration panel ruled that
  • Insitu had the unilateral right to appoint a member to the
  • that, in 1997, the Management Committee, as reconstituted by
  • Counterclaim was intended to repeat the allegations of the
  • the parties thereto rather than under the Partnership Agreement

  • 2 . MEMORANDUM OPINION

    EXTRACTED KEY WORDS
    IT1
    PARTNER
    INSITUFORM
    AGREEMENT
    TECHNOLOGY
    PARTNERSHIP AGREEMENT
    SOUTHWEST
    LICENSE AGREEMENT
    COURT
    INSITU
    WITHDRAW
    TERMINATE
    TERMINATION
    ITI
    BUSINESS
    TERRITORY
    CONTRACTS
    DISSOLUTION
    DEFENDANT
    PLAINTIFFS
    INAC
    HARTMAN AFF
    OBLIGATIONS
    PREDECESSOR
    ARBITRATION
    IMMEDIATE
    CUSTOMERS
    IRREPARABLE HARM
    WRITTEN NOTICE
    
                  IN THE COURT OF CHANCERY OF THE STATE OF DELAWD
    
                                 IN AND FOR NEW'CASTLE  COUNTY
    
    INSITUFORM TECHNOLOGIES, INC., )1>
                     Plainti,                     >>
            V.                                    ) Civil ActionNo. 17013
                                                  >
    INSITU, INC.,                                 >)
                     Defendant,
    
            and
    MIDSOUTH PARTNERS,                                                       N
                                                                             0Q7
                     Nominal Defendant.                                      z
                                                                             CG
                                                                              c.cY
    
    
                                    MEMORANDUM OPINION
    
                                    Date Submitted: April 14,1999
                                    Date Decided: April 16, 1999
                                      Corrected: April 19,1999
    
    Thomas R. Hunt, Jr., Esquire, S. Mark Hut-d, Esquire, of MORRIS, NICHOLS,
    ARSHT & TUNNELL, Wilmington, Delaware; OF COUNSEL: Thomas J. Goodwin,
    Esquire, of KRUGMAN & KAlLES, Saddle Brook, New Jersey, Attorneys for
    Plaintiff.
    
    Donald J. Wolfe, Jr., Esquire, Matthew E. Fischer, Esquire, of POTTER ANDERSON
    & CORROON, Wilmington, Delaware; OF COUNSEL: John S. Stump, Esquire, C.
    Torrence Armstrong, Esquire, of McGUIRE, WOODS, BATTLE & BOOTHE,
    McLean, Virginia, Attorneys for Defendants.
    
    
    STRINE, Vice Chancellor
    
    
    
          Defendant Ins&u, Inc. ("Insitu"), with a 42.5% interest, and plaintiff
    
    Insituform Technologies, Inc. ("In)`),  with a 42.5% direct interest and a
    
    15% interest held by its wholly-owned subsidiary Insituform Southwest, Inc.
    
    ("Southwest"), together comprise two of the partners of nominal defendant
    
    Midsouth Partners ("Midsouth" or the "Partnership"). IT1 has caused
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWD
  • INSITUFORM TECHNOLOGIES, INC.,)1>
  • Defendant Ins&u, Inc., with a 42.5% interest, and plaintiff
  • 15% interest held by its wholly-owned subsidiary Insituform Southwest,
  • Midsouth Partners.
  • Southwest, the other partner, conditionally to withdraw and terminate the
  • IT1 has claimed the right to deny Midsouth
  • business depends and has begun to compete directly with Midsouth.
  • Insitu now seeks a temporary restraining order to prohibit IT1 from
  • denying Midsouth the right to exploit the "InsituformB" Technology and
  • termination had on the right of the remaining partners of Midsouth to
  • ITI, a Delaware corporation, also owns 42.5% of Midsouth.
  • On December 2,1985, INAC (ITI's predecessor) and Midsouth
  • executed a sub-license agreement.
  • Technology in the Territory.
  • Section XIVof the License Agreement provides that the License
  • In the event becomes insolvent or a petition in bankruptcy is filed by or against widsouth] ed goods and services, or any other amounts due INAC for any reason and such failure shall continue the event any Partner withdraws from or seeks dissolution of; or in the event.
  • Midsouth partners executed yet another formal partnership agreement (the
  • "dissolution" of Midsouth.
  • Upon any such dissolution, however, the non-defaulting partner or partners desiring to
  • Hartman Aff.
  • Agreement's arbitration clause to contest ITI's right to control Midsouth.
  • irreparable injury; the probable merits of plaintiffs[`] claim; and the risks to
  • was involved in the negotiation of the contracts at
  • can occur is if a non-defaulting partner seeks immediate termination upon
  • Territory and from the Partnership's customers.
  • irreparable harm as a result of ITI's actions.

  • 3 . INC. DEFENDANTS REPLY MEMORANDUM

    EXTRACTED KEY WORDS
    COURT
    MIDSOUTH
    INSITU
    DEFENDANTS
    PLAINTIFFS
    AGREEMENT
    IT1
    AMERICAN
    LICENSE AGREEMENT
    PARTNERSHIP
    TEMPORARY RESTRAINING ORDER
    APP
    ARBITRATION
    CORROON LLP
    POST OFFICE
    SHAREHOLDERS
    ITI
    INSITUFORM
    FIDUCIARY DUTY
    TERMINATION
    OBLIGATIONS
    WILMINGTON
    TORRENCE ARMSTRONG
    TORRENCE ARMSTRONG MCGUIRE
    WOODS
    BATTLE
    ATTORNEYS
    BOOTHE LLP
    AMERICAN CENTER-NASHVILLE
    
                 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                                   IN AND FOR NEW CASTLE COUNTY
    
    
    INSITUFORM TECHNOLOGIES, INC.,               )
    
                             Plaintiff,
                                                 >
           V.                                    >     Civil Action No. 170 13 NC
    
    INSITU INC.,
    
                             Defendant,
    
           and
    
    MIDSOUTH PARTNERS                            >
                                                 >
                             Nominal Defendant.  )
    
    
                       REPLY MEMORANDUM OF INSITU, INC. AND
                   MJDSOUTH PARTNERS IN SUPPORT OF THEIR MOTION :
                         FOR TEMPORARY RESTRAINING ORDER
    
    
    
    
                                                      Donald J. Wolfe, Jr.
                                                      Matthew E. Fischer
                                                      POTTER ANDERSON & CORROON LLP
                                                      Hercules Plaza
                                                      13 13 North Market Street
    OF COUNSEL:                                       Post Office Box 951
                                                      Wilmington, Delaware 19899
    John S. Stump                                     (302) 984-6000
    C. Torrence Armstrong
    McGUIRE, WOODS, BATTLE &                          Attorneys for Insitu, Inc.
     BOOTHE LLP                                       and Midsouth  Partners
    8280 Greensboro Drive, Suite 900
    Post Office Box 9346
    McLean, Virginia 22 102
    (703) 712-5000
    
    Dated: April 13, 1999
    
    
    
                                                                      TABLE OF AUTHORITIES
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • REPLY MEMORANDUM OF INSITU, INC.
  • MJDSOUTH PARTNERS IN SUPPORT OF THEIR MOTION:
  • FOR TEMPORARY RESTRAINING ORDER
  • POTTER ANDERSON & CORROON LLP
  • Wilmington,
  • 984-6000 C. Torrence Armstrong McGUIRE, WOODS, BATTLE &
  • Attorneys for Insitu, Inc. BOOTHE LLP
  • and Midsouth Partners 8280 Greensboro Drive, Suite 900 Post Office Box 9346 McLean, Virginia
  • App., C.A.
  • Insitu seeks to preserve the fiction that Southwest acted independently of IT1
  • ITI recognizes the legal dilemma posed by its unilateral action.
  • the Midsouth partnership with Insitu should the Court not grant IT1 the declaratory relief
  • In other words, it wishes to take, and has in fact taken, unilateral action to conduct itself
  • wish to continue the business of Midsouth under paragraph l%, then ITI's termination fails.
  • -2-entering peremptorily Midsouth's exclusive territory and to violate Midsouth's exclusive
  • Moreover, the irreparable, unquantifiable harm to defendants' business is not merely
  • IT1 attempts to suggest that the fact that the 1995 arbitration under the Partnership
  • Indeed there would appear no apparent relationship between the relevant provisions of the
  • to establish between these fiduciary duty claims and the Shareholders' Agreement 2 was
  • an issue that plaintiffs apparently did not dispute.
  • American Center-Nashville Ltd. v. Smith,
  • 13 13 North Market Street C. Torrence Armstrong
  • Post Office Box 95 1 McGUIRE, WOODS, BATTLE &

  • 4 . INC. PLAINTIFFS REPLY TO COUNTERCLAIM

    EXTRACTED KEY WORDS
    INSITUFORM
    PARAGRAPH
    AGREEMENT
    DENIES
    ADMITS
    MIDSOUTH
    SUB-LICENSE
    PARTNERSHIP AGREEMENT
    LICENSE AGREEMENT
    COURT
    ARBITRATION
    PLAINTIFF
    IT1
    APPOINT
    EXHIBIT
    CONTROLLING
    DISPUTE
    MEMBER
    ACQUIRING CONTROLLING POSITIONS
    PARENT
    E-MIDSOUTH
    MANAGEMENT COMMITTEE
    REPEAT
    PARTIES THERETO
    DEFENDANT
    ACCURATE TERMS
    RESPECTFULLY REFERS
    PREDECESSOR-IN-INTEREST
    PURSUANT
    
                  IN THE COURT OF CHANCERY OF THE STATE OF D
    
                              IN AND FOR NEW CASTLE COUNTY
    
    INSITUFORM TECHNOLOGIES, INC.,              I
                          Plaintiff,
    
           V .
    
    INSITU, INC.,
                                                        C.A. No. 17013NC
                          Defendant,
    
           and
    
    MIDSOUTH PARTNERS,
    
                          Nominal Defendant.
    
    
                                     REPLY TO COUNTERCLAIM
    
                   Plaintiff, Insituform Technologies, Inc. ("IT""), by
    
    and through its attorneys, hereby replies to the Counterclaim of
    
    Defendant,       Insitu, Inc. ("Insitu"), dated April 1, 1999 (the
    
    "Counterclaim") as follows:
    
                   22.    Denies the allegations contained in paragraph 22
    
    of    the Counterclaim,            except admits     that Midsouth      Partners
    
    ("Midsouth") is a Tennessee General Partnership comprised of
    
    three partners,          ITI,     Insitu and Insituform Southwest,          Inc.
    
    ("Southwest").
    
                   23.    Admits the allegations contained in paragraph 23
    
    of the Counterclaim.
    
    
    
               24.    Admits the allegations contained in paragraph 24
    
    of the Counterclaim.
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF D
  • Nominal Defendant.
  • Plaintiff, Insituform Technologies, Inc., by
  • "Counterclaim") as follows:
  • Denies the allegations contained in paragraph 22
  • Admits the allegations contained in paragraph 23
  • of the Counterclaim, except admits that IT1 is, and until its
  • license was terminated by letter dated March 11, 1999 Midsouth
  • of the Counterclaim, except admits that Insituform East, Inc.
  • separate sub-license agreements relating to various Mid-Atlantic
  • Inc. executed a Partnership Agreement forming the
  • of the Counterclaim, except admits that pursuant to a Sub-License Agreement dated as of
  • , ITI's predecessor-in-interest entered
  • respectfully refers the Court to the License Agreement
  • attached as Exhibit 1 to the Counterclaim.
  • Process and acquiring controlling positions in certain sublicensees, and that IT1 has since
  • Inc. which was the parent of Enviroq
  • Midsouth and that a dispute arose with respect to Insitu's right
  • Midsouth in place and stead of a member appointed by E-Midsouth.
  • for their complete and accurate terms.
  • an arbitration panel ruled that
  • Insitu had the unilateral right to appoint a member to the
  • that, in 1997, the Management Committee, as reconstituted by
  • Counterclaim was intended to repeat the allegations of the
  • the parties thereto rather than under the Partnership Agreement

  • 5 . INC. PLAINTIFFS BRIEF IN OPPOSITION TO DEFENDANTS MOTION

    EXTRACTED KEY WORDS
    DEFENDANTS
    MIDSOUTH
    PARTNER
    PARTNERSHIP
    COURT
    PLAINTIFF
    TERMINATE
    ARBITRATION
    RESTRAINING ORDER
    INSITUFORM
    ITI
    IRREPARABLE HARM
    DISSOLUTION
    PARTNER WITHDRAWS
    IT1
    TEMPORARY RESTRAINING ORDER
    SUMMARY JUDGMENT
    LICENSE AGREEMENT PERMIT
    TERMINATION
    SOUTHWEST
    SUFFER IRREPARABLE HARM
    TENNESSEE
    INTEGRATION CLAUSE
    TECHNOLOGIES
    KAILES LLP
    CITATIONS
    ARBITRATE
    KRUGMAN
    SADDLE BROOK
    
                 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                           IN AND FO& NEW CASTLE COUNTY
    
    
    INSITUFORM TECHNOLOGIES, INC.,
    
                       Plaintiff,
    
         V .
    
    INSITU, INC.,                                  C.A. No. 17013NC
                       Defendant,                                       L..
    
         and
    
    MIDSOUTH PARTNERS,
    
                       Nominal Defendant.
    
    
                        PLAINTIFF'S BRIEF IN OPPOSITION TO
           DEFENDANTS' MOTION FOR A TEMPORARY RESTRAINING ORDER
                AND IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT
    
    
                                      MORRIS, NICHOLS, ARSHT b TUNNELL
                                      Thomas R. Hunt, Jr.
                                      S. Mark Hurd
                                       1201 N. Market Street
                                      P.O. Box 1347
                                      Wilmington, DE 19899-1347
                                       (302) 658-9200
                                             Attorneys for Plaintiff
    OF COUNSEL:
    
    Thomas J. Goodwin
    KRUGMAN b KAILES LLP
    Park 80 West - Plaza Two
    Saddle Brook, NJ 07663
    (201) 845-3434
    
    April 12, 1999
    
    
    
                                                                                       i.
    
                                     TABLE OF CONTENTS
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • INSITUFORM TECHNOLOGIES, INC.,
  • PLAINTIFF'S BRIEF IN OPPOSITION TO DEFENDANTS' MOTION FOR A TEMPORARY RESTRAINING ORDER AND
  • KRUGMAN b KAILES LLP Park 80 West - Plaza Two Saddle Brook,
  • Arbitration Of That Claim Must Be
  • License Agreement Permit ITI, In
  • The Event Any Partner Withdraws
  • Midsouth, To Declare The License
  • That They Will Suffer Irreparable Harm
  • BECAUSE THE LICENSE AGREEMENT UNAMBIGUOUSLY
  • PERMITS PLAINTIFF TO TERMINATE THE LICENSE
  • IN THE EVENT ANY PARTNER WITHDRAWS FROM OR
  • SEEKS DISSOLUTION OF THE PARTNERSHIP,
  • TABLE OF CITATIONS
  • as successor-in-interest to Insituform North America
  • Agreement since a partner "seeks dissolution" of Midsouth.
  • On March 11, 1999, IT1 terminated the License
  • Insituform Southwest, Inc., had given notice that
  • had advised ITI, in writing, that they intended to assert the
  • that plaintiff misled them into believing that the termination
  • agreed to arbitrate disputes concerning the License Agreement,
  • Agreement also contained an integration clause reflecting the
  • of the State of Tennessee."
  • KRUGMAN & KAILES LLP

  • 6 . INC. DEFENDANTS OPENING BRIEF

    EXTRACTED KEY WORDS
    PARTNERSHIP AGREEMENT
    MIDSOUTH
    COURT
    PARTNER
    LICENSE AGREEMENT
    IT1
    TERMINATION
    BUSINESS
    TERMINATE
    ARBITRATION
    INSITU
    INSITUFORM
    MARKET
    PROCEEDING
    PLAINTIFF
    HARTMAN AFF
    ITI
    PURPORTED TERMINATION
    POST OFFICE
    COLORABLE CLAIM
    DEFENDANTS
    COMPLAINT
    TERRITORY
    PROVISIONS
    DISSOLUTION
    IRREPARABLE HARM
    TEMPORARY RESTRAINING ORDER
    FIDUCIARY DUTIES
    BOOTHE LLP
    
                                                    FILE COPY
                                                                                                       
    
                              IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                                   IN AND FOR NEW CASTLE COUNTY
    
    INSITUFORM TECHNOLOGIES, INC.,                   11
                              Plaintiff,             11
                     V.                              1      Civil Action No. 170 13-NCC
                                                     1
    INSITU INC.,                                     11
                              Defendant,             11
                     and                             11
    MIDSOUTH PARTNERS,                               )1
                              Nominal Defendant.     1                                     -.,-,
                                                                                    & I .c!
                                                                                                     
                                                                                    --y TTZ
                      DEFENDANTS' OPENING BRIEF IN SUPPORT OF  THEIR?:,:.                            
                           MOTION FOR A TEMPORARY RESTRAINING ORDER  ;,                                
                                                                                                      
                                                                                                      
                                                                                    _.                
                                                                                                      
                                                                                                       
                                                     Donald J. Wolfe, Jr.           -,- : i            
                                                     Matthew E. Fischer              c::\              
                                                                                          -., _ r,
                                                     POTTER ANDERSON & COR&O&r
                                                     13 13-North Market Street
                                                     Hercules Plaza, Sixth Floor
                                                     Post Office Box 95 1
                                                     Wilmington, Delaware 19899-095 1
    OF COUNSEL:                                      (302) 984-6000
    
    John S. Stump
    C. Torrence Armstrong
    McGUIRE, WOODS, BATTLE &
     BOOTHE LLP
    8280 Greensboro Drive, Suite 900
    Post Office Box 9346
    McLean, Virginia 22 102
    (703) 712-5000
    
    Dated: April 9, 1999
    366804
    
    
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • 13 13-North Market Street
  • John S. Stump C. Torrence Armstrong McGUIRE, WOODS, BATTLE & BOOTHE LLP 8280 Greensboro
  • NATURE AND STAGE OF THE PROCEEDING.
  • The License Agreement.
  • The Partnership Agreement.
  • IT1 Threatens to Pull the Plug and Buy Out
  • IT1 Purports to Terminate Midsouth..
  • THERE IS MORE THAN A COLORABLE CLAIM THAT
  • ITI'S PURPORTED TERMINATION OF THE LICENSE
  • AGREEMENT IS SUBJECT TO ARBITRATION.
  •    |