Bloomberg News

Carlyle Group Wins Delaware-Forum Fight Over Kuwait Case (1)

May 30, 2013

Carlyle Group LP (CG:US) won a Delaware Supreme Court ruling that Delaware, not Kuwait, is the proper place to try an investment-contract case with National Industries Group Holding.

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.

The case is National Industries Group (Holding) v. Carlyle Investment Management LLC, CA5527, Delaware Chancery Court (Wilmington).

To contact the reporter on this story: Phil Milford in Wilmington at pmilford@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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Companies Mentioned

  • CG
    (Carlyle Group LP/The)
    • $30.46 USD
    • 0.02
    • 0.07%
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