Del. Draws Line In The Sands Of Discovery

Law360, New York (April 26, 2013, 6:22 PM EDT) -- When one director sues other directors, do the defendant-directors have the benefit of the attorney-client privilege to shield internal communications with counsel from discovery? That was one issue before the Delaware Court of Chancery in the fast-moving litigation contesting a proposed recapitalization of Morgans Hotel Group Co. Kalisman, et al. v. Friedman, et al., C.A. No. 8447-VCL, (Del. Ch. Apr. 17, 2013).

In resolving the issue, the court carefully drew the line to allow discovery of communications between counsel and a special committee that the plaintiff-director...
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