BRINCKHERHOFF v. TEXAS EASTERN PRODUCTS

Civil Action Nos. 2427-VCL, 4548-VCL.

986 A.2d 370 (2010)

Peter BRINCKHERHOFF, Individually and on Behalf of All Others Similarly Situated, and Derivatively on Behalf of Teppco Partners, LLP, Plaintiff, v. TEXAS EASTERN PRODUCTS PIPELINE COMPANY, LLC; Enterprise Products Partners, L.P.; Enterprise Products GP, LLC; Epco Inc.; Dan L. Duncan; Jerry E. Thompson; W. Randall Fowler; Michael A. Creel; Richard H. Bachmann; Richard S. Snell; Michael B. Bracy; and Murray H. Hutchison, Defendants, and Teppco Partners, L.P., Nominal Defendant. In re Texas Eastern Products Pipeline Company, LLC Merger Litigation.

Court of Chancery of Delaware.

Decided: January 15, 2010.


Attorney(s) appearing for the Case

Joseph A. Rosenthal, Jessica Zeldin, Rosenthal, Monhait & Goddess, P.A., Wilmington, Delaware; Jeffrey H. Squire, Lawrence P. Eagel, Paul Wexler, Esquire, Bragar Wexler Eagel & Squire, PC, New York, New York; Attorneys for Plaintiffs Peter Brinckerhoff and Renee Horowitz.

A. Gilchrist Sparks, III, William M. Lafferty, Thomas W. Briggs, Jr., Morris, Nichols, Arsht & Tunnell LLP, Wilmington, Delaware; Attorneys for Defendants Enterprise Products Partners, L.P., Enterprise Products GP, LLC, W. Randall Fowler, Michael A. Creel and Richard H. Bachmann.

Vernon R. Proctor, Kurt M. Heyman, Dominick T. Gattuso, Proctor Heyman, LLP, Wilmington, Delaware; Attorneys for Nominal Defendant Teppco Partners, L.P.

Gregory P. Williams, Anne C. Foster, Rudolf Koch, Jennifer J. Veet, Richards Layton & Finger, P.A., Wilmington, Delaware; Attorneys for Defendants Richard S. Snell, Michael B. Bracy, Murray H. Hutchison, Jerry E. Thompson and Texas Eastern Products Pipeline Company, LLC.

Lawrence C. Ashby, Richard D. Heins, Richard L. Renck, Ashby & Geddes, Wilmington, Delaware; Attorneys for Defendants Dan L. Duncan and Epco, Inc.

Donald J. Wolfe, Jr., Mark A. Morton, Brian C. Ralston, Potter Anderson & Corroon LLP, Wilmington, Delaware; Attorneys for Defendants Donald H. Daigle, Duke R. Ligon and Irvin Toole, Jr.

Bruce Silverstein, Martin S. Lessner, Danielle Gibbs, Emily V. Burton, Young Conaway Stargatt & Taylor, LLP, Wilmington, Delaware; Brian J. Robbins, S. Benjamin Rozwood, Kelly M. McIntyre, Rebecca A. Peterson, Arshan Amiri, Robbins Umeda LLP, San Diego, California; John A. Lowther, William J. Doyle II, James R. Hail, Doyle Lowther LLP, San Diego, California; Attorneys for Objectors.


OPINION

LASTER, Vice Chancellor.

I am asked to approve a settlement resolving two representative actions brought by holders of limited partnership units ("LP units") of Teppco Partners L.P. ("Teppco"). The first action, Brinckerhoff v. Texas Eastern Products Pipeline Company, LLC, C.A. No. 2427-VCL, challenged two transactions between Teppco and Enterprise Products Partners, L.P. ("Enterprise"). Defendant Daniel L. Duncan controlled both Teppco and...

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