Opinion ID: 2782037
Heading Depth: 3
Heading Rank: 3

Heading: Plaza’s Remaining Arguments

Text: 13 Finally, Plaza contends that plaintiffs are judicially estopped from enforcing the forum selection clause in the Subscription Agreement because their complaint alleges that the Bundora Transfer Agreements released the Subscription Agreement. This argument fails for two reasons. First, Plaza’s characterization of the complaint is inaccurate. As plaintiffs point out, the releases in the Bundora Transfer Agreements released only pre-existing claims. They did not release or terminate the Subscription Agreement itself or its forum selection clause. The amended complaint is clear in pleading that only pre-existing claims stemming from the Subscription Agreement, not the entire agreement itself, were released by the Bundora Transfer Agreement releases. In fact, the amended complaint pleaded that the forum selection clause was valid and enforceable. Second, the facts here do not meet the elements required for judicial estoppel. The doctrine of judicial estoppel prevents a party from prevailing in one phase of a case on an argument and then relying on a contradictory argument to prevail in another phase. New Hampshire v. Maine, 532 U.S. 742, 749 (2001). Judicial estoppel requires that: (1) a party adopts a position clearly inconsistent with an earlier position and (2) the party had succeeded in persuading a court to accept that party’s earlier position, so that judicial acceptance of an inconsistent position in a later proceeding would create “the perception that either the first or the second court was misled.” Id. at 750. Here, Plaza fails to show inconsistency because plaintiffs’ argument that prior claims were released by the Bundora Transfer Agreements is consistent with their argument that the forum selection clause from the 2006 Agreement remains valid. 14 Plaza also argues that plaintiffs waived their right to move for remand by seeking enforcement of the releases from the Bundora Transfer Agreements which do not have an exclusive forum clause and therefore allow removal. This argument is unavailing for the reasons previously discussed. First, Carlyle’s claim regarding the Bundora Transfer Agreements is “with respect to” the Subscription Agreement. Second, one of the Bundora Transfer Agreements, the CEP III Transfer Agreement, contained a forum selection clause prohibiting removal to Delaware federal court. Plaintiffs have not waived their right to seek remand of the case.