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Paul, Weiss is widely recognized as having one of the nation’s preeminent securities litigation and regulatory practices. For two decades, our lawyers have guided global corporations and financial institutions through a series of “bet-the-company” securities-related crises, consistently reducing or eliminating their most damaging claims and negotiating favorable resolutions.
1235 Fund LP and MM Asset Management Win Dismissal of Declaratory Judgment Lawsuit
- Client News
- June 3, 2021
Paul, Weiss achieved a significant victory for Canadian clients 1235 Fund LP and MM Asset Management when the New York Supreme Court, Commercial Division, granted a motion to dismiss a lawsuit against them. Plaintiffs sought a declaratory judgment entitling them to repay our clients pursuant to certain debentures that our clients had issued to them in cash rather than in much more highly valued securities to which our clients believed they were entitled under the debenture provisions.
The plaintiffs, counterparties in the debenture transaction (represented by Quinn Emanuel), claimed that a security agreement for the transaction had a forum selection clause that required the parties to litigate in New York. Paul, Weiss moved to dismiss the action for lack of personal jurisdiction, arguing that the clause was inapplicable and that there was no other basis for asserting personal jurisdiction over them in New York, and that any disputes between the parties should instead be litigated as part of an ongoing case in Canada.
Supreme Court Judge Jennifer Schecter granted the motion to dismiss in its entirety less than two working days after the motion was fully briefed, holding that “the complaint does not make a sufficient start at suggesting there could even possibly be a basis for New York jurisdiction.”