Client secures injunction in Western Pennsylvania Marcellus lease deal
Clients Confidential client
Jones Day prevailed in an injunction action on behalf of a client seeking to preserve a transaction representing a substantial acquisition of Marcellus assets. In April 2010, the client entered into a Purchase and Sale Agreement pursuant to which the client agreed to purchase, and the vendor agreed to sell, certain leasehold interests, comprising approximately 25,000 acres, for the purpose of extracting natural gas from the Marcellus Shale formation underlying the properties. Disputes regarding the ownership of certain of the leases and title and lease information arose during the due diligence period. After the parties were unable to agree on an extension of the closing date, Jones Day filed an injunction action in September 2010 seeking an order extending the closing date to allow the completion of the due diligence process and requiring the seller to cooperate in due diligence, as well as other relief. The seller opposed, arguing that the buyer was not entitled to the injunctive relief it sought and asked the court to declare that the seller had the unilateral right to terminate the PSA. After a full evidentiary hearing, the client prevailed on all of its claims and secured an injunction on the terms it sought.