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Delaware District Court Explains Tolling Based on Books and Records Inspection

Norman v. Elkin, C.A. No. 06-005-LPS (D. Del. Sept. 4, 2018)

Litigation seeking to inspect a corporation’s records under Section 220 of the DGCL might toll the statute of limitations for certain claims under the right circumstances.  There are important limits to this form of tolling.  For example, it is not automatic and will only apply to claims that are the subject of the inspection demand.  This decision does a good job of explaining these limits and the factors a court will consider in determining whether inspection-based tolling should apply.  It otherwise examines and applies the law on the statute of limitations and issues of inquiry notice.