In $200+ Million Contract Termination Dispute on Behalf of Carbon Credit Developer, Putterman Yu Wang Obtains Dismissal of Delaware Court Proceedings in Favor of Arbitration
November 2025
PYW obtained a complete dismissal of a Delaware court proceeding brought against Terra Global Capital (“Terra”) , a global leader in management of projects to generate carbon credits through environmental preservation and restoration, by a private equity firm that had invested in a carbon credit project development fund managed by Terra. The ruling allows the dispute to proceed in arbitration before the International Chamber of Commerce pursuant to the parties’ agreement.
Anew Climate (“Anew”) is an investor in the Terra Bella Nature-Based Solutions fund (“TB-NBS”), and agreed to invest a minimum a minimum of $230 million to provide development funding and purchase carbon credits from projects to be developed by TB-NBS.
Anew attempted to terminate its agreement with TB-NBS and walk away from its $230 million commitment. After Terra invoked the dispute resolution provision in the contract that Anew purported to terminate, which required a period of informal resolution followed by arbitration before the International Chamber of Commerce, Anew responded by filing a lawsuit in the Delaware Superior Court. Anew claimed that the arbitration clause was inapplicable, and that the dispute was instead governed by the dispute resolution clause of a different contract between Anew and a different Terra entity, arguing that contract served as a “master” contract whose terms superseded all others.
Terra moved to dismiss the Delaware proceedings based on the arbitration clause in the relevant contract. While the motion was pending, Anew instituted a separate proceeding in Delaware Chancery Court and obtained a temporary restraining order preventing Terra from proceeding with the ICC arbitration until the Delaware superior court resolved the motion to dismiss.
The Superior Court of Delaware has granted Terra’s motion to dismiss. The court agreed fully with Terra’s position, holding that the dispute is governed by the specific arbitration clause in the contract that Anew sought to terminate. The court’s order terminates the Delaware Superior Court proceeding and dissolves the temporary restraining order, allowing the dispute to proceed in the ICC.
PYW partners Philip Wang, George Chikovani, and Dannielle Campbell and Of Counsel Traci Keith represent Terra, working with William Green of Halloran Farkas Kittila LLP as Delaware local counsel.
Judge Rules in Favour of Terra Global, Anew Case Goes to Arbitration.pdf