Chancery Court May Defer to Legislature on Fee-Shifting

December 10, 2014

Delaware Business Court Insider
By Jeff Mordock

A former stockholder’s lawsuit against an airplane repair company could give the Delaware Court of Chancery an opportunity to provide corporations with much-needed guidance on fee-shifting bylaws. But corporate law analysts caution that the court could forgo speaking out on the issue in favor of letting the legislative process take its course.

“My expectation is that if there is a process going on in the legislature or in the marketplace that is likely to resolve the issue, the Chancery Court will not be eager to weigh in through an opinion,” said Jill E. Fisch, a corporate law professor at the University of Pennsylvania Law School.

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