Partner Skye Gao recently commented on SPCP Group’s lawsuit against Floating Point Group International and Svalbard Holdings. A Delaware Chancery Court judge ruled that the lawsuit, which concerns a failed deal to purchase a claim in the FTX Chapter 11 bankruptcy case, does not fall under the court’s jurisdiction. He stated that the bankruptcy being handled in Delaware is not, on its own, a strong enough link to justify hearing the case there.
Skye represents the defendants alongside Glenn Agre attorneys Andrew Glenn, Samantha Bennett, and Maggie Lovric.
“We appreciate the Delaware Chancery Court’s thoughtful analysis, which addresses novel issues of law in Delaware and beyond,” Skye said. “Plaintiff sought to shoehorn participation in a Delaware bankruptcy case as a submission to jurisdiction to a case involving a contract dispute in Delaware Chancery Court merely because the underlying assets involved claims trading against the Chapter 11 debtor. The Court rejected Plaintiff’s efforts. The decision reinforces fundamental rules of personal jurisdiction and underscores that creditors in a Chapter 11 case are not subject to state court jurisdiction simply by participating in the bankruptcy.”
