Court of Chancery Awards $689M in Damages for Breach of Partnership Call Right Requiring an Opinion of Counsel as a Condition Precedent.

In a recent opinion, Bandera Master Fund LP v. Boardwalk Pipeline Partners LP, the Delaware Court of Chancery considered whether a general partner of a master limited partnership (the "Partnership") breached the Partnership's limited partnership agreement by exercising a contractual call right when the conditions precedent to such exercise were not satisfied. In Bandera, the Partnership's general partner possessed a call right entitling the general partner to purchase the Partnership's limited partnerships units that the General Partner and its affiliates did not own if certain conditions precedent were satisfied. [Extracted from the article]