Delaware Business Litigation Report

Court Of Chancery Explains How To Prove Bad Faith

Mennen v. Wilmington Trust Company, C.A. 8432-ML (April 24, 2015)

While not a corporate case, this decision is useful in explaining how to prove a party acted in bad faith so as to be outside the exculpation provisions of a trust or Sec. 102(b)(7). Basically, if the conduct is so bad that it is only explainable by having been done in bad faith, that will establish such a claim. The examples cited by the Master are good illustrations of such conduct.

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