United Phosphorus, Ltd. v. Micro-Flo, LLC

Summary

The Delaware Supreme Court held that a Delaware state-court action refiled after dismissal of a related federal action should be treated as the first-filed action for forum non conveniens purposes. The court ruled that the plaintiff’s choice of Delaware remained entitled to protection and that the defendant therefore had to establish overwhelming hardship. The decision reversed and remanded for the Superior Court to determine whether that burden was met.

Holdings

1. The Delaware State Action must be treated as the first-filed action because it was a continuation of the viable Delaware-law claims from United Phosphorus's earlier Delaware federal action, which United Phosphorus did not voluntarily abandon.
2. Because the Delaware State Action was first filed, Micro-Flo's motion to dismiss or stay could not be granted unless Micro-Flo established overwhelming hardship. The case was remanded for the Superior Court to decide that issue in the first instance.

Questions Presented

1. Whether the Delaware State Action should be treated as the first-filed action for purposes of Delaware forum non conveniens law after the earlier Delaware federal action was dismissed.
2. Whether the Superior Court properly dismissed or stayed the Delaware State Action in favor of the Georgia action without determining whether Micro-Flo would suffer overwhelming hardship if required to litigate in Delaware.

Disposition

reversed_and_remanded