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CORPORATE PROP. ASSOC. 6 v. HALLWOOD GROUP

C.A. No. 15661-NC.

792 A.2d 993 (2002)

CORPORATE PROPERTY ASSOCIATES 6 and Corporate Property Associates 7, Plaintiffs v. THE HALLWOOD GROUP INCORPORATED, Defendant. The Hallwood Group Incorporated, Counterclaim Plaintiff v. Corporate Property Associates 6 and Corporate Property Associates 7 Counterclaim Defendants.

Court of Chancery of Delaware, New Castle County.

Decided: February 25, 2002.

Attorney(s) appearing for the Case

Thomas R. Hunt, Jr., and Matt Neiderman of Morris Nichols Arsht & Tunnell, Wilmington; and Ben Burke Howell of Reed Smith LLP, Philadelphia, PA, for Plaintiffs/Counterclaim Defendants.

Lawrence C. Ashby, Richard Heins and Joseph C. Handlon of Ashby & Geddes, Wilmington; Charles A. Crocco, Jr. of Crocco & De Maio, P.C., Mount Kisco, NY, for Defendant/Counterclaim Plaintiff.

OPINION

JACOBS, Vice Chancellor.

The dispute in this action concerns the validity of an August 21, 1996 Letter Agreement between the plaintiffs, Corporate Property Associates 6 and Corporate Property Associates 7 (together "CPA"), and the defendant, the Hallwood Group Incorporated ("Hallwood"). Under that Agreement, Hallwood prepaid the principal owed on a $500,000 note made payable to CPA in exchange for...

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