The Delaware Court of Chancery has ruled that a fight for control of four investment funds should proceed in a Kentucky state court, where an influential pension fund is battling to uphold the removal of general partners with in-house staff.

Vice Chancellor Joseph R. Slights III on Monday stayed a suit from San Francisco-based private equity firm Bay Hills Capital, which had accused the Kentucky state retirement system of ousting the general partners in a bid “to wrest control of four highly profitable investment funds from a boutique investment firm, and to seize more than $20 million in value to which KRS [Kentucky Retirement Systems] is not entitled.”