04/14/2011 03:19:00 PM EST
Forum Shopping Case Closes with a Whimper
Scully v. Nighthawk is a
recent Delaware Court of Chancery case involving multi-state class action
litigation, highlighted on these pages here, in
which the issue was raised about forum shopping and settlements of suits in
multi-state corporate cases that could be potentially collusive.
Professor Brian J.M. Quinn writes here
about a short letter dated April 12, 2011 from the Court to counsel in the
case, available here, in
which the Court offers a mea culpa and accepts the report of the Special
Counsel appointed by the Court, which concluded that there was no wrongdoing by
any of the lawyers involved and the several issues raised by multi-state class
actions, such as what some may describe as forum shopping, are relatively
unchartered areas of the law in terms of the absence of bright-line standards
in many instances.
The good professor also links to a paper he authored
about the increasing trend of merger-related litigation being filed in states
other than Delaware as well as the related topic of exclusive forum
selection clauses. Some wags refer to the
ancillary phenomenon of cases being filed outside of
Delaware as "ABC" (anywhere but Chancery).
Read more Delaware business
litigation case summaries and commentary on Delaware
Corporate and Commercial Litigation Blog, a blog hosted by Francis G.X.
Pileggi, of Fox Rothschild LLP.
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