The Delaware Supreme Court has ruled on an important insurance coverage dispute involving Gemini Insurance Company and Bausch & Lomb Americas, Inc. The court's decision, filed on October 1, 2026, addresses jurisdictional issues and the interpretation of a forum selection clause in an insurance policy. This ruling affects how similar cases may be handled in the future, particularly regarding the rights of parties to transfer cases between courts.
The case stems from a disagreement between Gemini Insurance Company and Bausch & Lomb Americas, Inc. over an insurance policy that included a forum selection clause. This clause directed disputes to the Court of Chancery in Delaware, and if that court declined jurisdiction, to the District of Delaware. The dispute arose when the insured, Bausch & Lomb, filed a lawsuit in a different state court, prompting Gemini Insurance to seek an antisuit injunction from the Court of Chancery. The case was assigned docket number 127, 2026.
The Court of Chancery initially denied Gemini's request for an antisuit injunction, stating that it lacked subject matter jurisdiction over the underlying insurance dispute. The court also noted that the forum selection clause specified the District of Delaware as the fallback jurisdiction, rather than the Superior Court. This led to a dismissal of the case, which Gemini appealed.
In its ruling, the Delaware Supreme Court affirmed the lower court's decision. The court explained that Gemini had waived its right to argue that Section 1902 of Delaware law mandated a transfer to the Superior Court. The court stated, "The appellant knowingly, intelligently, and tactically waived the opportunity to argue to the trial court that Section 1902 mandates transfer." The justices emphasized that the appellant had multiple opportunities to present its arguments but chose not to do so.
The ruling was delivered by Justice Morgan T. Zurn, along with Justices Legrow and Griffiths. The court's decision clarified that the appellant's failure to pursue its arguments in the lower court effectively barred it from raising those issues on appeal.
This ruling has significant implications for future cases involving forum selection clauses and jurisdictional disputes. It underscores the importance of parties presenting their arguments at the appropriate stages of litigation. The ruling may impact how similar disputes are handled in Delaware and could influence the strategies of insurers and insured parties in future litigation.
Going forward, parties involved in similar disputes must be aware of their obligations to present arguments in a timely manner. The ruling sets a precedent that emphasizes the necessity of engaging fully in the judicial process to preserve rights for appeal. The Delaware Supreme Court's decision serves as a reminder that failing to assert rights can lead to waiving those rights entirely.
As for what’s next, it is unclear if Gemini Insurance Company will seek further appeal options or if there are any related cases pending. The court filing did not provide additional details on future actions. However, this ruling is likely to influence how parties approach jurisdictional issues in insurance disputes moving forward.