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Summaries and analysis of recent Delaware court decisions concerning business-related litigation.

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Showing 3 posts in Choice of Law.

Delaware Superior Court Explains Limits Of Choice Of Law In Contracts

Posted In Choice of Law

Change Capital Partners Fund I, LLC v. Volt Electrical Systems LLC, C.A. N17C-05-290 RNC (April 3, 2018)

This decision holds that a contractual provision adopting Delaware law will generally be upheld.  However, when applying Delaware law will violate the public policy of another state whose law would have applied but for the contractual choice of law, Delaware will not enforce that choice of law.  This distinguishes the Ascension case that declined to apply Delaware law to a non-compete contract that violated California law.

Delaware District Court Finds That Controlling Stockholder Claim Falls Outside Of Forum Selection Bylaw

Posted In Choice of Law

Anderson v. GTCR, LLC, C.A. No. 16-10-LPS (D. Del. Sept. 29, 2016)

Forum selection bylaws are a powerful tool for companies to avoid the burdens of multi-forum litigation.  But those bylaws only cover the claims falling within their terms.  Where, as here, the bylaw only covers fiduciary duty claims against officers and directors, the bylaw will not be enforced for a fiduciary duty claim against a controlling stockholder.

Court Of Chancery Explains Section 115

Posted In Choice of Law

Bonanno v. VTB Holdings Inc., C.A. 10681-VCN (February 8, 2016)

Section 115 of the Delaware General Corporation Law addresses forum selection provisions in corporate charters or bylaws. This decision explains how a contract may also select a forum, how to interpret such a contract and how such contractual provisions may be incorporated into other contracts.