Latest Case: Brigade Leveraged Capital Structures Fund Ltd v. Stillwater Mining Co. (Business Law)

In Gratuitously Attacking Marriage Equality, Clarence Thomas Accidentally Raised an Important Question About the Scope of Religious Liberty

MICHAEL C. DORF

Cornell law professor Michael C. Dorf comments on a statement by Justice Clarence Thomas (joined by Justice Samuel Alito) gratuitously expressing his hostility to the Court’s same-sex marriage decision in Obergefell v. Hodges and his sympathy for Kim Davis, a county clerk in Kentucky who refused to issue marriage licenses to same-sex couples even after the Supreme Court’s decision. Although Justice Thomas characterizes Davis and those like her as people who “refus[e] to alter their religious beliefs in the wake of prevailing orthodoxy,” Dorf points out that no one asked Davis to alter her religious beliefs. Rather, the lawsuit against her contends that she must provide services to the public in accordance with their constitutional rights, whatever her religious beliefs.

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Brigade Leveraged Capital Structures Fund Ltd v. Stillwater Mining Co.

Docket: 427, 2019

Opinion Date: October 12, 2020

Judge: Montgomery-Reeves

Areas of Law: Business Law, Civil Procedure, Securities Law

In 2017, Sibanye Gold Ltd. (“Sibanye”) acquired Stillwater Mining Co. (“Stillwater”) through a reverse triangular merger. Under the terms of the merger agreement, each Stillwater share at closing was converted into the right to receive $18 of merger consideration. Between the signing and the closing of the merger, the commodity price for palladium (which Stillwater mined) increased by nine percent, improving Stillwater’s value. Certain former Stillwater stockholders dissented to the merger, perfected their statutory appraisal rights, and pursued this litigation. During the appraisal trial, petitioners argued the flawed deal process made the deal price an unreliable indicator of fair value and that increased commodity prices raised Stillwater’s fair value substantially between the signing and closing of the merger. In 2019, the Delaware Court of Chancery issued an opinion, holding that the $18 per share deal price was the most persuasive indicator of Stillwater’s fair value at the time of the merger. The court did not award an upward adjustment for the increased commodity prices. Petitioners appealed the Court of Chancery’s decision, arguing that the court abused its discretion when it ignored the flawed sale process and petitioners’ argument for an upward adjustment to the merger consideration. After review of the parties’ briefs and the record on appeal, and after oral argument, the Delaware Supreme Court found no reversible error and affirmed the Court of Chancery.