Del. Bylaw Ruling Left Door Open To Future Disputes
July 2, 2013, 5:55 PM EDT
Law360, New York (July 2, 2013, 5:55 PM EDT) -- In a closely-watched case of first impression under Delaware law, on June 25, 2013, Chancellor Leo Strine held that the bylaw provisions of Chevron Corp. and FedEx Corp. requiring that any derivative claim, fiduciary duty claim or other stockholder claim under Delaware corporate law be exclusively heard in Delaware courts are legally valid under Delaware law.
These provisions were adopted by the boards of Chevron and FedEx in response to the costs and inefficiencies inherent in defending multiforum litigation, although Chancellor Strine premised his ruling on...