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Gas industry

Delmay Commences Legal Action Against Semitel Corporation and Related Parties

Strategic Insights

— 1 min read

Delmay, a Canadian-based company, has initiated a legal action against Semitel Corporation and related parties in the United States District Court for the Northern District of Ohio. The lawsuit alleges fraud, breach of contract, and unjust enrichment, among other claims. Delmay is seeking a constructive trust, specific performance, and damages, including the return of Semitel's assets and intellectual property.

The action is the latest development in a long-standing dispute between Delmay and Semitel, which has been the subject of previous news releases. The Alberta Stock Exchange suspended trading in Delmay's shares in May 1994 pending the filing of certain information related to Semitel. With the Semitel acquisition no longer proceeding and currently in litigation, Delmay's management intends to seek reinstatement of trading based on the company's oil and gas operations.

Key Takeaways:

  • Delmay has initiated a legal action against Semitel Corporation and related parties in the United States District Court for the Northern District of Ohio.
  • The lawsuit alleges fraud, breach of contract, unjust enrichment, money had and received, and waste.
  • Delmay is seeking the imposition of a constructive trust for 51% of Semitel's stock, appointment of a receiver to manage Semitel's affairs, and return of property, including intellectual property and licenses owned by Semitel.
  • Delmay is also seeking an accounting of all funds expended by Semitel since November 30, 1993, disgorgement of profits and income received by the defendants, damages, and return of monies had and received.
  • Trading in Delmay's shares has been suspended by The Alberta Stock Exchange since May 17, 1994, pending the filing of certain information related to Semitel.
  • Victor J. Elias, President of Delmay, has expressed the company's intention to seek reinstatement of trading based on oil and gas operations.

Statistics:

  • Date of commencement of the legal action: November 22, 1994.
  • Date of suspension of trading in Delmay's shares: May 17, 1994.
  • Percentage of Semitel stock sought to be held in a constructive trust: 51%.
  • Date of funds expended by Semitel to be accounted for: November 30, 1993.

Sources:

  • Business Wire, November 22, 1994.
  • The Alberta Stock Exchange.

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