Del. Fee-Shifting Ban Puts Focus On Forum Selection

Law360, New York (May 30, 2014, 3:54 PM EDT) -- When a faction of the Delaware bar on Thursday approved a legislative tweak that would essentially prohibit stock corporations from imposing attorneys' fees on losing plaintiffs, practitioners' focus shifted back to a different tool to help combat a stark rise in shareholder suits: forum-selection provisions.

A Delaware Chancery Court ruling last summer upheld public companies' rights to enforce bylaws that require investors to bring litigation in the state's well-developed business courts, a victory for boards looking for a more predictable — and arguably friendlier — venue for proceedings.

Attorneys have since noted more interest in such provisions, fanned by the prospect...

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