Texas Court Enforces Forum Selection Clause And Dismisses Case

Case:    In Re Plains All American Derivative Litigation
             United States District Court for the Southern District of Texas
             No. H-15-3632 C/W Civil Action No. H-16-0429

In In Re Plains All American Derivative Litigation, a federal district court in Texas granted the Defendant's Motion to Dismiss unitholder derivative actions based on a mandatory forum-selection clause which the Court deemed enforceable. Plaintiffs therein filed independent unitholder derivative actions on behalf of Plains All American Pipeline, L.P. (collectively "Plaintiffs"), a Delaware master limited partnership headquartered in Houston, Texas, against Plains All American GP ("Defendant") related to a May 2015 pipeline leak, which resulted in the spill of 3,400 barrels of oil into the coastal area around Santa Barbara, California. Plaintiffs alleged the leak was the result of Defendant's mismanagement of Plains.