Chancery Sides With Real Estate Business in Dispute ‘Collision’

A significant portion of a former partner’s dispute with a complex web of New York real estate investment funds must be heard in court rather than arbitration, the Delaware Chancery court said.

Vice Chancellor Laster sided with Fairstead Capital Management, ordering that the real estate business and its co-founder, William Blodgett, must litigate their dispute that centered on Blodgett’s claims from both an employment and an operating agreement. The judge in Friday’s opinion barred Blodgett from arguing any claims under the operating agreement in his arbitration.

“We are pleased that the decision rejected Will’s attempt to force ...