A Delaware Superior Court ruled that parties to litigation regarding a failed carbon credit investment venture were bound by an arbitration clause. The court therefore dismissed the complaint filed by an investor in a pooled fund to generate carbon credits against the operators of the pool. The court concluded that the defendants were not bound by the forum selection clause in a Securities Purchase Agreement to which their parent company was a party and that the arbitration clause in a separate Acquisition and Management Agreement (AMA) was controlling. The court further concluded that the parties intended for the arbitrator to determine issues of substantive arbitrability for disputes arising out of the AMA.

Lawsuit brought by an investor in a pooled fund to generate carbon credits seeking to vindicate its termination of its agreement with the operators of the fund after it failed to generate carbon credits. 

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

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Delaware Court Concluded that Carbon Credit Investment Dispute Was Subject to Arbitration

Filed

United States of America

Delaware

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