The state’s high court yesterday upheld a judgment by Delaware Chancery Court saying the companies were “sophisticated international organizations” and knew what they were doing when they agreed to Delaware courts as a venue for possible disputes.
“Forum selection clauses have become a vital part of interstate and international commercial agreements,” according to the decision. “The parties agreed that the courts of Delaware meet their standards of neutrality and expertise in commercial litigation.”
Beginning in 2006, Safat, Kuwait-based National Industries invested $25 million with Carlyle, a Washington-based private-equity firm, then sued in a Kuwaiti court in 2009 to recover an alleged loss, the justices said. Carlyle interests sued in Delaware contending any action against the firm must be filed in that state as part of the contract.
National Industries’ lawyer Michael Bonkowski and Carlyle spokeswoman Catherine Armstrong didn’t immediate respond to requests for comment on the decision.
The case is National Industries Group (Holding) v. Carlyle Investment Management LLC, CA5527, Delaware Chancery Court (Wilmington).
