Justia Virginia Supreme Court Opinion SummariesArticles Posted in Mergers & Acquisitions
Pure Presbyterian Church v. Grace of God Presbyterian Church
The Supreme Court affirmed the judgment of the trial court entering an order enforcing a merger agreement between two churches, holding that the trial court had subject matter jurisdiction to adjudicate this dispute.The two churches in this case entered into a merger agreement memorializing a merger between the churches. When one of the churches (Defendant) decided it wished to withdraw from the “proposed” merger, the other church (Plaintiff), instituted this action. The jury returned a special verdict in favor of Plaintiff, finding that the parties had reached a merger agreement and that Plaintiff had performed its obligations under the merger agreement. The trial court entered a final order in accord with the merger agreement and the jury’s verdict. Defendant sought to vacate the trial court’s order, arguing that the trial court lacked subject matter jurisdiction to enter it. The Supreme Court disagreed, holding that the trial court had subject matter jurisdiction either to adjudicate a breach of contract claim or to issue a declaratory judgment on the merger contract, and a pending bankruptcy did not foreclose the trial court’s adjudication of the merger contract. View "Pure Presbyterian Church v. Grace of God Presbyterian Church" on Justia Law
Shareholder Representative Services v. Airbus Americas, Inc.
At issue in this case was a contract dispute between the purchaser (Purchaser) and the seller (Seller) of a corporation pursuant to a corporative merger agreement. The agreement provided for three different liability limitations (damage caps) in the event of Seller’s breaches. Seller breached several requirements of the agreement by failing to use certain accounting principles to accurately establish the financial condition of Seller’s corporation and, accordingly, the appropriate adjustment to the consideration to be paid by Purchaser. The amount of the adjustment was controlled by the indemnity Purchaser was entitled to receive under the relevant damage caps. The circuit court entered final judgment for Purchaser. The agent for the stockholders of Seller and former stockholders of Seller appealed, arguing that the circuit court improperly construed the merger agreement as to which damage cap was controlling under the facts of the case. The Supreme Court agreed with Appellants and reversed, holding that the circuit court applied the incorrect damage cap. View "Shareholder Representative Services v. Airbus Americas, Inc." on Justia Law