Opinion ID: 1532378
Heading Depth: 1
Heading Rank: 3

Heading: Air Product's Purchase of the Ashland Chemicals ECD Division

Text: In June 2003, Air Products notified Honeywell that it (Air Products) had agreed to acquire Ashland Chemical's Electronic Chemicals Division (Ashland ECD), which was then the largest producer of wet process chemicals in the industry. Air Products acquired four of Ashland's business lines, including its wet process chemical business. On July 2, 2003, Air Products notified Honeywell of its intent to terminate the Alliance Agreement on two years' notice. Air Products took the position that the termination clause of the Agreement had been triggered, because Honeywell's direct sales of wet process chemicals exceeded the 10% limit established by Section 2(c) of the Agreement. In response, Honeywell filed in the Court of Chancery an action for breach of contract, in which it sought to enjoin Air Products' acquisition of the Ashland ECD. The Court of Chancery denied Honeywell's motion for a preliminary injunction, concluding that although Honeywell had shown that it was likely to succeed on the merits of its breach of contract claim, Honeywell was not entitled to injunctive relief because it had an adequate remedy at law, i.e., monetary damages. Thereafter, in September 2003, Honeywell filed an amended complaint for money damages, again claiming that Air Products' termination of the Alliance Agreement constituted a breach of contract.