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Is the Delaware Supreme Court Pushing Back on Chancery’s Suspicion of Non-Competes?

The Delaware Court of Chancery has been increasingly willing of late to strike down non-compete covenants as overbroad, a trend accompanied by a growing unwillingness to “blue pencil” agreements by narrowing terms to what the...more

DE Supreme Court: No Class Vote Required Where Corporations With Multi-Class Capital Structure Adopted Exculpatory Charter...

Delaware’s Supreme Court unanimously rejected challenges by stockholders of two corporations who argued the respective companies invalidly adopted exculpatory charter provisions without giving each class of stock a separate...more

DE Supreme Court: Creditors’ Fraudulent Transfer Claims Are Direct, Not Derivative

Delaware’s Supreme Court recently clarified the difference between derivative and direct claims in the context of a dispute over whether creditors’ fraudulent transfer claims were covered by insurance policies applicable to...more

Determining Insolvency: A Critical Duty for Directors at Distressed Companies

Summary - If a corporation’s directors fail to identify the pivotal point at which their company becomes legally insolvent, they can be held personally liable for breaching their fiduciary duties to the corporation’s...more

Implied Covenant Prohibits Bad Faith Interference With Commission Opportunity

Delaware’s Superior Court recently held that commission-agreement parties stated a claim for breach of the implied good faith and fair dealing covenant when they alleged their counter-party acted “to destroy promising...more

Hotel Group Seller’s COVID-19 Response Breaches ‘Ordinary Course’ Covenant, Excusing Buyer’s Performance

Delaware’s Supreme Court held this month that a buyer’s obligation to close a hotel group purchase was excused where the seller adopted what it described as “proportional changes in response to extraordinary...more

Delaware Supreme Court Revives Charter Provision Requiring Securities Act Claims Be Brought in Federal Court

The Delaware Supreme Court, in reversing a Delaware Court of Chancery decision, upheld a corporate charter provision requiring stockholders bring claims arising under the Securities Act of 1933, as amended (the 1933 Act), in...more

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