Anew Ventures II, LLC v. Terra Global Investment Management, LLC

Investor's action to enjoin emergency arbitration regarding investor's termination of its agreement with the defendants after a pooled fund to generate carbon credits failed to generate credits.

The Delaware Court of Chancery granted a motion by an investor in a pooled fund to generate carbon credits for a temporary restraining order (TRO) enjoining the defendants from participating in emergency arbitration before the International Chamber of Commerce while the Delaware Superior Court adjudicates the defendants’ motion to dismiss the investor’s lawsuit seeking to vindicate its termination of its agreement with the defendants after the pooled fund failed to generate carbon credits. In granting the TRO blocking arbitration, the Chancery Court found that the primary factor of imminent and irreparable harm was present because being compelled to arbitrate absent an agreement to do so is an irreparable injury. Although the defendants argued that an ongoing and anticipated project would suffer immediate harm absent the investor’s capital, the Chancery Court stated that it was “dubious” that harm was imminent, particularly with regard to the anticipated project, and also that the defendants did not explain why monetary damages would be insufficient to remedy any harm to the defendants. The Chancery Court therefore found that the balance of equities favored granting the TRO. The court also found that the investor cleared the “low threshold” of asserting a “colorable claim” that the dispute was not subject to arbitration.

Investor's action to enjoin emergency arbitration regarding investor's termination of its agreement with the defendants after a pooled fund to generate carbon credits failed to generate credits.