Ashby & Geddes Obtains Reversal in the Third Circuit of $11 Million Judgment

Ashby & Geddes recently obtained a reversal in the United States Court of Appeals for the Third Circuit of an $11 million judgment entered on summary judgment by the United States District Court for the District of Delaware against The Shaw Group Inc., a premier provider of engineering, design, construction, and maintenance services to government and private-sector clients.

In 2000, Shaw purchased substantially all of the assets of Stone & Webster, Inc. and its subsidiaries through an auction sale in bankruptcy.  Saudi American Bank subsequently brought litigation against Shaw contending that it had assumed certain liabilities under the asset purchase agreement.  Both parties moved for summary judgment and in May 2005, the District Court ruled in favor of Saudi American Bank and entered judgment against Shaw.  On appeal, however, the Third Circuit agreed with Shaw and reversed the entry of summary judgment holding that the liabilities at issue were clearly excluded liabilities under the agreement.

A team of Ashby & Geddes attorneys from the firm’s Bankruptcy and Corporate Litigation practice groups, including Stephen E. Jenkins, Gregory A. Taylor and Catherine A. Gaul, has been representing Shaw in the litigation with Saudi American Bank.  You may view a copy of the Court’s opinion here.