Chancery Court dismisses Chemours suit against DuPont

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Delaware Chancery Court granted a motion to dismiss Chemours lawsuit against DowDuPont, now DuPont.

The Wilmington company spun off from DuPont in 2015 had argued that claims against its former parent should not go to arbitration, a provision of the spin-off agreement.

Chemours has claimed that DuPont failed to fully disclose risks facing businesses that were spun off to Chemours,  such as the so-called “forever chemicals” that have made their way into the environment. 

“While we are disappointed in today’s ruling, we plan to file an appeal to the State Supreme Court. We are confident in the merits, whether in court or in arbitration and will continue to vigorously defend the rights of Chemours and all its stakeholders,”  Chemours stated.

DuPont spokesman Dan Turner issued the following statement:

“We are pleased with the Court’s ruling, which dismissed Chemours’ lawsuit in full, based on what the Court called a ‘straightforward application of settled law.’ Chemours argued that the Separation Agreement governing the Chemours spin-off was unenforceable because Chemours was an EID subsidiary at the time it signed the agreement.  The Court rejected that argument, confirming that contracts between parents and subsidiaries (like our Separation Agreement with Chemours) are “routinely enforced,” and that to invalidate such a contract on the procedural ground offered by Chemours “would be nonsensical.”  Chemours’ indemnification obligations are clear.  We will take appropriate steps to enforce our rights under the Separation Agreement.”

See the court decision below: 

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