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Court Of Chancery Explains Expedited Procedures

Lavi v. Wideawake Deathrow Entertainment LLC, C.A. 5779-VCS (January 18, 2011)

The Delaware corporate and alternative entity laws have several provisions for expedited treatment of corporate disputes, such as over the right to inspect corporate records. Those matters are to go to trial quickly and, as this decision explains, are seldom subject to motion practice such as for summary judgment.  Thus, the better practice is to ask for a trial date, soon.

A word of caution is in order on this point, however.  When the Court calls in response to a request for a fast schedule, you had better be prepared to say why any trial is needed.  At least in some cases, the Court has been known to rule on the merits during such a call when faced with a lawyer who has no good reason to oppose inspection or a decision on entitlement to vote stock.



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