Heartland Del. Inc. v. Rehoboth Mall Ltd. P’ship

Plaintiff entered into a lease with Defendant containing optional renewal terms. The parties disputed whether the option was properly exercised. Defendant then informed Plaintiff that if it failed to vacate the leasehold, Defendant would pursue legal action. Plaintiff brought this action to forestall that eventuality. At issue in this case was whether the Court of Chancery can exercise jurisdiction over what is essentially a real estate possession action, notwithstanding that the Legislature has vested exclusive jurisdiction over such matters with the Justice of the Peace Courts. The Court of Chancery granted Defendant's motion to dismiss, concluding (1) the Court does not have jurisdiction, under the facts of this case, to enjoin Defendant from seeking relief from the Justice of the Peace Court in this matter where that court has exclusive jurisdiction; and (2) a claim does not exist in equity to nullify Defendant's contractual rights arising from Plaintiffs' purported failure to timely exercise an option. View "Heartland Del. Inc. v. Rehoboth Mall Ltd. P'ship" on Justia Law