Corporate

Recent Posts

Delaware Court of Chancery Hears Fee-Shifting Bylaws Argument
Posted on 25 Aug 2014 by Francis G.X. Pileggi

After the Delaware Supreme Court decision in ATP Tour, Inc. v. Deutscher Tennis Bund , Del. Supr., No. 534, 2013 (May 8, 2014) [an enhanced version of this opinion is available to lexis.com subscribers] , highlighted on these pages, in which the court... Read More

Delaware Legislative Revision Proposed to Restrict Fee-Shifting Bylaws Introduced
Posted on 28 May 2014 by Kevin M. LaCroix

As discussed in a recent post ( here ), in a May 8, 2014 decision the Delaware Supreme Court upheld the facially validity of a nonstock corporation’s bylaw provision shifting attorneys’ fees and costs to unsuccessful plaintiffs in intra-corporate... Read More

Delaware Proposes New Fee-Shifting and Forum Selection Legislation
Posted on 10 Mar 2015 by Francis G.X. Pileggi

Legislation is being proposed to ask the Delaware Legislature to limit the ability of corporations to adopt fee-shifting provisions in their charter and bylaws, but to provide additional support for adopting forum selection clauses in those same corporate... Read More

Delaware Legislature Passes Fee-Shifting Bylaw Prohibition — What Questions Remain?
Posted on 15 Jun 2015 by Kevin M. LaCroix

In a late night session on June 11, 2015, the Delaware House of Representatives overwhelmingly passed S.B. 75, which prohibits Delaware stock corporations from adopting “loser pays” fee-shifting bylaws and which confirms that Delaware corporations... Read More

Though Delaware Legislature Has Tabled Action, Upcoming Judicial Review of Fee-Shifting Bylaws Seems Likely
Posted on 28 Jul 2014 by Kevin M. LaCroix

The Delaware Supreme Court stirred up quite a bit of controversy earlier this year in the ATP Tours, Inc. v. Deutscher Tennis Bund case when it upheld the facial validity of a fee-shirting by law [an enhanced version of this opinion is available to lexis... Read More

Delaware Drops Fee-Shifting Bar
Posted on 20 Jun 2014 by Brian JM Quinn

A couple of weeks ago, it looked the stars were aligning in a once in a generation way that would have the plaintiffs and defendants bar stand behind an unusual amendment to the Delaware code. That amendment would effectively prohibit firms from adopting... Read More

Delaware Corporate Bylaws: Even If the Company Can’t Fee Shift, It Can Still Forum Select
Posted on 3 Jun 2014 by Kevin M. LaCroix

In light of the recent legislative initiative to restrict Delaware stock corporations’ use of fee-shifting bylaws, companies incorporated in Delaware have, as described in a recent Law 360 article ( here , subscription required) a “smaller... Read More

Delaware Court of Chancery Upholds Bylaws with Forum Selection Clause
Posted on 26 Jun 2013 by Francis G.X. Pileggi

Boilermakers Local 154 Retirement Fund v. Chevron Corporation , C.A. No. 7220-CS (Del. Ch. June 25, 2013) [ an enhanced version of this opinion is available to lexis.com subscribers ]. Issue Addressed : Enforceability of bylaws adopted by the Board... Read More

Battle Builds in Delaware Over Fee-Shifting Bylaws
Posted on 1 Dec 2014 by Kevin M. LaCroix

Earlier this year, after the Delaware Supreme Court upheld the facial validity of fee-shifting bylaws in the case of ATP Tour, Inc. v. Deutscher Tennis Bund (as discussed here ), a legislative initiative quickly emerged to restrict the case’s holding... Read More

Delaware Supreme Court Reinforces Importance of Clear and Precise Bylaw Provisions and Specifically Drafted Notices of Annual Meetings
Posted on 23 Jul 2015 by Sheppard Mullin

by John Stigi In Hill International, Inc. v. Opportunity Partners L.P. , No. 305, 2015, 2015 Del. LEXIS 322 (Del. July 2, 2015), the Delaware Supreme Court affirmed the Court of Chancery’s grant of injunctive relief as it recognized the plaintiff... Read More

Delaware Chancery Court Upholds “North Carolina Only” Forum Selection Bylaw
Posted on 10 Sep 2014 by Kevin M. LaCroix

Following the Delaware Chancery Court’s June 2013 ruling upholding the facial validity of the bylaw of Chevron Corporation designating Delaware as the exclusive forum for intra-corporate disputes, the adoption of forum selection bylaws has become... Read More

Update on Fee-Shifting Bylaw Issue in Pending Delaware Court of Chancery Case
Posted on 19 Sep 2014 by Francis G.X. Pileggi

Recent activity in the Delaware Court of Chancery has followed the Delaware Supreme Court’s May 2014 decision in ATP Tour, Inc v. Deutscher Tennis Bund , 91 A.3d 554 (Del. 2014), highlighted on these pages, which upheld a fee-shifting bylaw, at... Read More

Delaware Court of Chancery Analyzes Statutory Basis for Validity of Bylaws and Director Action
Posted on 29 Jan 2015 by Doug Esten

Sinchareonkul v. Fahnemann , C.A. No. 10543-VCL (Del. Ch. Jan. 22, 2015) [ an annotated version of this statute is available to lexis.com subscribers ] . Several aspects of this Court of Chancery opinion make it noteworthy. First, this declaratory... Read More