Supreme Court of Delaware
In Re: Shorenstein Hays-Nederlander Theatres LLC Appeals
June 20, 2019
Summary
The Supreme Court held that affiliates of CSH are bound by the LLC Agreement and that Section 7.02(a) independently prohibits competitive activities that undermine SHN’s economic success or create conflicts of interest, subject to the specific controlled-production provisions in Section 7.02(b). It affirmed the Court of Chancery’s conclusion that the Hayses did not control the two productions at issue under Section 7.03, but reversed the contrary interpretation of Section 7.02(a) and remanded the preliminary-injunction action for further proceedings. The court declined to remand the declaratory-judgment action because damages and other relief were not challenged on appeal.