Delaware High Court Declines To Adopt More Stringent Standards For Motions To Dismiss

Central Mortgage Co. v. Morgan Stanley Mortgage Capital Holdings, LLC, No. 595-2010 (Del. Supr. Aug. 18, 2011), read Delaware Supreme Court's en banc opinion here.

Issue Addressed

Whether Delaware should adopt the more stringent standard for motions to dismiss announced in the U.S. Supreme Court's Twombly and Iqbal opinions.

Short Answer: No. (At least not now).

Why This Decision is Important

Delaware litigators will have no doubt about the standard to apply in a Rule 12(b)(6) motion to dismiss in Delaware now that Delaware's highest court has spoken on this topic. Before today, however, in the absence of the clarity that this opinion brings, I have written on this blog several times over the last few years about whether the Delaware Court of Chancery had adopted the standard announced by the U.S. Supreme Court opinion in Twombly in 2007 and Iqbal in 2009, for motions to dismiss, in light of the Delaware Rules of Civil Procedure being based on the Federal Rules of Civil Procedure. See, e.g., here. See also compilation of posts about Delaware cases referring to Twombly here.

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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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