BOARDWALK PIPELINE v. BANDERA MASTER FUND

No. 1, 2022.

288 A.3d 1083 (2022)

BOARDWALK PIPELINE PARTNERS, LP, Boardwalk Pipelines Holding Corp., Boardwalk GP, LP, Boardwalk GP, LLC, and Loews Corporation, Defendants-Below, Appellants-Cross Appellees, v. BANDERA MASTER FUND LP, Bandera Value Fund LLC, Bandera Offshore Value Fund Ltd., Lee-Way Financial Services, Inc., and James R. McBride, On behalf of themselves and similarly situated Boardwalk Pipeline Partners, LP Unitholders, Plaintiffs-Below, Appellees-Cross Appellants.

Supreme Court of Delaware.

Decided: December 19, 2022.


Attorney(s) appearing for the Case

William Savitt, Esquire (argued), Sarah K. Eddy, Esquire , Adam M Gogolak, Esquire , Wachtell, Lipton, Rosen & Katz, New York, New York; Daniel A. Mason, Esquire , Paul, Weiss, Rifkind, Wharton & Garrison LLP, Wilmington, Delaware; Stephen P. Lamb, Esquire , Andrew G. Gordon, Esquire , Harris Fischman, Esquire , Robert N. Kravitz, Esquire , Carter E. Greenbaum, Esquire , Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York, New York; Srinivas M. Raju, Esquire , Blake Rohrbacher, Esquire , Matthew D. Perri, Esquire , John M. O'Toole, Esquire , Richards, Layton & Finger, P.A., Wilmington, Delaware; Rolin P. Bissell, Esquire , Young Conaway Stargatt & Taylor LLP, Wilmington, Delaware, for Defendants Below, Appellants-Cross Appellees Boardwalk Pipeline Partners, LP, Boardwalk Pipelines Holding Corp., Boardwalk GP, LP, Boardwalk GP, LLC, and Loews Corporation.

A. Thompson Bayliss, Esquire (argued), J. Peter Shindel, Jr., Esquire , Daniel G. Paterno, Esquire , Eric A. Veres, Esquire , Samuel D. Cordle, Esquire , Abrams & Bayliss LLP, Wilmington, Delaware for Plaintiffs Below, Appellees-Cross Appellants Bandera Master Fund LP, Bandera Value Fund LLC, Bandera Offshore Value Fund Ltd., Lee-Way Financial Services, Inc., and James R. McBride, on behalf of themselves and similarly situated Boardwalk Pipeline Partners, LP Unitholders.

Before SEITZ, Chief Justice; VALIHURA, VAUGHN, TRAYNOR, Justices; and LEGROW, Judge, constituting the Court en Banc.


Oil and gas pipeline businesses transport petroleum products for their producer-customers. They often organize as Delaware Master Limited Partnerships ("MLPs") to take advantage of tax benefits from Federal Energy Regulatory Commission ("FERC") regulations. Under Delaware law, the MLP sponsor can structure...

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