Connection lost
Server error
ELF ATOCHEM N. AMERICA, INC. v. JAFFARI Case Brief
Why Top Law Students (And Those Aspiring to Be) Use LSD+ Briefs
Let's be real, law school is a marathon. Our exclusive Flash-to-Full case system is designed by Harvard Law School and MIT grads to match your pace: Quick summaries when you're slammed, detailed analysis when you need to go deep. Only LSD+ offers this kind of flexibility to genuinely fit your study flow.
Adaptive Case Views
Toggle between Flash, Standard, and Expanded. Get what you need, when you need it.
Exam-Ready IRAC Format
We deliver the precise structure professors look for in exam answers.
Complex Cases, Clarified
We break down dense legal reasoning into something digestible, helping you grasp core concepts.
Case Brief Summary & Legal Analysis
tl;dr: A member of a Delaware LLC sued derivatively in Delaware. The court dismissed the case, enforcing a forum selection clause in the LLC agreement that required all disputes be resolved in California, even though the LLC entity itself was not a signatory to the agreement.
Legal Significance: This case establishes that under Delaware’s LLC Act, freedom of contract is paramount. An LLC is bound by its members’ agreement, and contractual forum selection clauses are enforced over the Act’s default jurisdictional provisions, even for derivative claims brought on behalf of the LLC.
ELF ATOCHEM N. AMERICA, INC. v. JAFFARI Law School Study Guide
Use this case brief structure for your own legal analysis. Focus on the IRAC methodology to excel in law school exams and cold calls.
Case Facts & Court Holding
Key Facts & Case Background
Elf Atochem North America, Inc. (“Elf”) and Cyrus Jaffari (through his company, Malek, Inc.) formed a Delaware limited liability company, Malek LLC, to pursue a joint venture. The parties executed a comprehensive LLC Agreement to govern the entity. The Agreement, which was not signed by Malek LLC itself, contained broad dispute resolution clauses. Section 13.8 required any controversy arising out of the Agreement to be submitted to arbitration in California. Section 13.7 provided for the exclusive jurisdiction of California state and federal courts for any non-arbitrable claims. Subsequently, a dispute arose, and Elf filed a lawsuit in the Delaware Court of Chancery against Jaffari and Malek LLC, asserting both direct claims and derivative claims on behalf of Malek LLC. The derivative claims alleged that Jaffari, as manager, breached his fiduciary duties to the LLC. The defendants moved to dismiss for lack of subject matter jurisdiction, arguing that the LLC Agreement’s forum selection and arbitration clauses required the dispute to be resolved in California. The Court of Chancery granted the motion to dismiss, and Elf appealed.
Court Holding & Legal Precedent
Issue: Does the Delaware Limited Liability Company Act permit members to agree to exclusive dispute resolution in a non-Delaware forum through an LLC agreement, thereby divesting the Delaware Court of Chancery of jurisdiction over derivative claims brought on behalf of the LLC?
Yes. The dismissal for lack of subject matter jurisdiction was affirmed. The Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. E
IRAC Legal Analysis
Complete IRAC Analysis for Higher Grades
IRAC (Issue, Rule, Analysis, Conclusion) is the exact format professors want to see in your exam answers. Our exclusive Flash-to-Full briefs combine holding, analysis, and rule statements formatted to match what A+ students produce in exams. These structured briefs help reinforce the essential legal reasoning patterns expected in law school.
Legal Issue
Does the Delaware Limited Liability Company Act permit members to agree to exclusive dispute resolution in a non-Delaware forum through an LLC agreement, thereby divesting the Delaware Court of Chancery of jurisdiction over derivative claims brought on behalf of the LLC?
Conclusion
This landmark decision solidifies the primacy of freedom of contract in Delaware Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pari
Legal Rule
The Delaware LLC Act's stated policy is to give maximum effect to Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat
Legal Analysis
The court's analysis centered on the paramount policy of freedom of contract Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id es
Flash-to-Full Case Opinions
Flash Summary
- The Delaware LLC Act prioritizes freedom of contract, allowing members to