Del. Rulings Invite Partnerships To Draft Duties Away

Law360, New York (July 23, 2013, 8:55 PM EDT) -- Delaware's Supreme Court on Monday found in favor of Encore Energy Partners LP in a dispute over a 2011 merger, scoring yet another victory for general partners eager to use carefully crafted partnership agreements to limit their duties to their investors.

The court upheld a Chancery Court ruling that Encore's partnership agreement — which explicitly waives all fiduciary duties except that of "good faith," which is sacrosanct under Delaware law — precluded investor claims that the board had improperly approved a conflict-riddled deal.

The Encore case...
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