A team of Shearman & Sterling Litigation and International Arbitration lawyers recently obtained the dismissal of four of five claims, and a stay of the remaining claim, on behalf of client Rhodia S.A in a long-running dispute with Invista S.a.r.l. and other Invista affiliates. Oral argument on this case, Invista S.a r.l., et al. v. Rhodia S.A., No. 4159-VCS (Del. Ch., Mar. 28, 2011), was held in Delaware Chancery Court on March 28 before Vice Chancellor Leo Strine; the order was issued on April 6, 2011.

Washington, D.C. partner Jonathan L. Greenblatt has been leading the litigation team representing Rhodia S.A., a global specialty chemicals manufacturer, in a litigation with Invista S.a r.l. and other Invista entities over the right of various Rhodia entities to use technical information in the development of a new chemical plant. This was a dispute over the use of purported trade secrets. The case is complex and has also involved an ICC arbitration, handled by Paris partners Emmanuel Gaillard, Philippe Pinsolle and Mark McNeill, along with various suits in Texas state and federal court, New York federal court, Delaware Chancery Court and the U.S. Court of Appeals for the Third Circuit.

In 2007, a dispute developed between Invista (successor, by acquisition, to certain lines of business previously owned by DuPont) and Rhodia S.A. with respect to Rhodia S.A.'s right to use certain technical information. Relying on the joint venture agreements, Rhodia entities initiated an ICC arbitration in Paris to determine Rhodia S.A.'s and its affiliates' rights to use and disclose the technical information to potentially build a new plant. Shortly thereafter, Invista filed suit against Rhodia S.A. in Texas state court alleging various causes of action related to the purported misappropriation of trade secrets (stemming from the parties' joint venture in France). Ten months later, while awaiting a decision on Rhodia S.A.'s motion to dismiss (after removal to federal court), the Invista parties voluntarily dismissed that lawsuit and refiled in the Southern District of New York, adding claims of tortious interference with contract against Rhodia S.A. related to Invista's purchase and sale agreements with DuPont (and also naming DuPont as a party). The New York litigation was dismissed three months later for lack of subject matter jurisdiction, at which time, in November 2008, the Invista parties refiled again in Delaware Chancery Court on essentially the same claims (but leaving DuPont out). After two years of litigation in the federal courts (after removal) on Rhodia S.A.'s motion to stay or dismiss in favor of arbitration under the Federal Arbitration Act, the case was ultimately remanded back to the Chancery Court.

Once back in the Chancery Court, Rhodia S.A. made two motions: (1) to stay the case, given the significant overlap with the ICC arbitration in Paris, pending the outcome of those proceedings, and (2) to dismiss four of Invista's five counts as preempted by Delaware's Uniform Trade Secrets Act, and for otherwise failing to state a claim upon which relief could be granted. The parties submitted extensive briefing on these issues and oral argument was held before Vice Chancellor Strine on March 28, with Greenblatt arguing on behalf of Rhodia S.A. Vice Chancellor Strine ruled from the bench, granting all the relief requested by Rhodia S.A., dismissing all but one of Invista's five claims, and staying the remaining claim pending the outcome of the arbitration.

The Shearman & Sterling team included partners Jonathan L. Greenblatt (Washington, DC-Litigation), Heather Kafele (Washington, DC-Litigation), Christopher M. Ryan (Washington, DC-International Arbitration), and associates John M. Padilla (Washington, DC-International Arbitration), Bryan Dayton (Washington, DC-International Arbitration), Helene Gogadze (Washington, DC-International Arbitration), and Oliver Tuholske (Washington, DC-International Arbitration), with significant help from the Paris team handling the arbitration, including partner Mark McNeill (Paris-International Arbitration) and associate Carmelo Rustico (Paris-International Arbitration).