Court of Chancery Rejects Receiver's Effort to Second Guess Settlement Agreement

Olshan Litigation partner Adrienne Ward won summary judgment dismissing all claims against the former CFO of Southern China Livestock, Inc., brought by the court-appointed Receiver.  The Delaware Court of Chancery held that the Receiver's claims for over $7.5 million in damages for fraud, breach of fiduciary duty and conversion were barred by the release in a settlement agreement entered into by the company prior to the Receiver's appointment.  The Court found that the Receiver had failed to present any bona fide evidence that the release was not supported by consideration.  Law360 reported on the decision where Ward was quoted as saying “This decision represents the that court will not take lightly efforts to void settlement agreements, unless there is substantial evidence." The opinion can be found here.