Documents: Forsythe v. ESC Fund Mgmt. Co. (U.S.), Inc., C.A. No. 1091-VCL, Lamb, V.C. (Del. Ch. Oct. 9, 2007)
The Court denied defendants’ motion to dismiss claims for failure to satisfy the demand requirement in a derivative suit relating to a limited partnership, notwithstanding that the general partner was not alleged to have knowledge of the misconduct by parties to whom the general partner delegated the management of the partnership (the “Delegatees”), where the partnership agreement set forth that the general partner had a duty to oversee the Delegatees. The Court also found that plaintiffs’ had stated a claim against the bank that created the limited partnership for aiding and abetting breaches of fiduciary duties by the Delegatees, who were wholly owned by the bank, even though the bank itself was not a fiduciary of the limited partnership.