Litigation Roundup

Partners Martin Roth and Katie Lencioni and of counsel Aaron Nielson were recognized in The Texas Lawbook "Litigation Roundup" for their recent success for 3i Group.

"... The former CEO of Texas-based Magnitude Software, which was acquired by private-equity backed New Amsterdam Software Holdings in March 2019 in a deal advised by Kirkland & Ellis, failed to convince an appellate panel that his claim he’s owed $20 million belongs in Texas courts.

In a Sept. 19 ruling, the panel determined that forum selection clauses in the acquisition agreements mandate Christopher Ney litigate his dispute in Delaware.

According to court documents, Ney sued New Amsterdam and its indirect investor 3i Group in Texas state court in 2020, shortly after he was terminated, alleging he was orally promised $20 million in exchange for his support of the acquisition.

Citing the Delaware forum selection clause, the district court granted New Amsterdam’s motion to dismiss with prejudice. Ney again brought suit in Texas state court, naming as defendants 3i Group and 3i Corporation, an investment advisor for 3i Group. The defendants removed the suit to federal court.

U.S. District Judge Lee Yeakel granted 3i’s motion to dismiss based on the forum selection clause, and Ney appealed to the Fifth Circuit in May 2021.

The panel rejected Ney’s argument that the oral contract that is the basis of his claim fell outside the scope of the written agreements and the forum selection clause therein.

Judges Rhesa H. Barksdale, Carl E. Stewart and James L. Dennis served on the panel.

Ney is represented by Jane Webre, Amy Dashiell and Lauren Ditty of Scott, Douglass & McConnico.

3i is represented by Martin Roth, Katie R. Lencioni and Aaron Nielson of Kirkland & Ellis."