Ingres Corp. v. CA, INC.
8 A.3d 1143
| Del. | 2010Background
- Ingres and CA are Delaware and California software companies engaged in related contract disputes.
- CA filed breach-of-contract claims in California Superior Court; Ingres defended there.
- Delaware Court of Chancery denied Ingres's motion to stay and enjoin CA action, enforcing forum clauses.
- Two related contracts contained forum selection clauses designating Delaware or New York; a third lacked an explicit clause.
- Chancery concluded the governed disputes were controlled by the related contracts with forum clauses and enjoined California action.
- Delaware Supreme Court affirmed, clarifying McWane and Bremen principles in light of enforceable forum clauses.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether forum clauses required stay/enjoin of California action | Ingres argues no stay due to lack of exclusive clause and comity. | CA contends enforceable forum clauses compel staying or enjoining multiple fora. | Enforceable forum clauses control; stay/enjoin affirmed. |
| Whether a non-clause contract can supersede clause contracts | Ingres asserts non-clause contract governs disputes. | CA asserts related contracts with forum clauses govern related disputes. | Related agreements with forum clauses control; non-clause contract did not supersede. |
| Application of Bremen/McWane doctrine in presence of forum clauses | Ingres argues default McWane rule should apply, potentially permitting forum elsewhere. | CA relies on Bremen and enforceable clause to uphold forum designation. | Court honors enforceable forum clause; Bremen/McWane principles are clarified accordingly. |
Key Cases Cited
- McWane Cast Iron Pipe Corp. v. McDowell-Wellman Engineering Co., 263 A.2d 281 (Del. 1970) (default stay discretion; comity and efficiency in parallel actions)
- Elf Atochem North Am., Inc. v. Jaffari, 727 A.2d 286 (Del. 1999) (forum selection clauses presumptively valid; enforceable)
- Aveta, Inc. v. Colon, 942 A.2d 603 (Del.Ch. 2008) (respect for plaintiff's chosen forum; contractual provision controls)
- M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1 (U.S. 1972) (forum selection clause enforceability; not to be overridden by public policy absent strong reasons)
- Elia Corp. v. Paul N. Howard Co., 391 A.2d 214 (Del. Super. 1978) (enforcement of valid forum agreements; respect to forum clauses)
- Cent. Contracting Co. v. Maryland Cas. Co., 367 F.2d 341 (3d Cir. 1966) (forum clause respected absent unreasonable disadvantage)