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Quadrant Structured Products Company, Ltd. v. Vertin, C.A. No. 6990-VCL (Del. Ch. May 4, 2015) [an enhanced version of this opinion is available to lexis.com subscribers].
This Court of Chancery opinion is destined to be cited as a seminal ruling for its historical and doctrinal analysis of important principles of Delaware corporate law, including the following:
This pithy opinion, which is of average length by Chancery standards at 45-pages, is in many ways akin to a condensed law review article or a mini-treatise on first principles of Delaware corporate law. There are many gems in this opinion that make it worth reading in full. Among them is a reference to the scholarship of Professor Bainbridge that was quoted in a prior Chancery opinion regarding the question of what impact insolvency should have on the ability of directors to rely on the business judgment rule. That is: none. Seefootnote 19. This decision also features the helpful summary of the duties of directors in the context of insolvency and the rights of creditors in connection with an insolvent corporation. For example:
Supplement: Professor Bainbridge kindly links to this post and provides a quote and a citation to his scholarship referred to in this opinion.
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 Eckert Seamans.
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