About This Blog
Morris James postings of significant news, original articles and legal insight related to Delaware.
Showing 6 posts from May 2018.
Self-Dealing Conduct Supporting Fiduciary-Duty Claims Was Covered by Contractual Duties Imposed in the LLC Agreement
The Delaware Limited Liability Company Act’s policy is to give the maximum effect to the principle of freedom of contract in LLC operating agreements. The act permits parties to eliminate common-law fiduciary duties, and replace them with contractual duties that are often more limited in scope than default common-law fiduciary duties. While parties may not eliminate the implied covenant of good faith and fair dealing in an operating agreement, the implied covenant only operates to imply terms essential to fill gaps necessary to meet the reasonable expectations of the parties as reflected in the express terms of the operating agreement. More ›
Delaware Super Lawyers® magazine has recognized five Morris James partners as top legal counsel in Delaware and five "Rising Stars®" attorneys. "Rising Stars®” is a recognition for lawyers who are 40 or under, or who have been practicing for 10 years or less.
Super Lawyers® selects outstanding lawyers from more than 70 practice areas throughout the United States who have attained a high degree of peer recognition and professional achievement. The selection process includes independent research, peer nominations, and peer evaluations. Only the top five percent of attorneys in each state are honored as Super Lawyers in this annual list, and the Rising Star selection is limited to only 2.5 percent of eligible attorneys, according to Super Lawyers’ website.
Morris James attorneys recognized on the 2018 Delaware Super Lawyers® list are:
P. Clarkson Collins
Jason C. Jowers
Lewis H. Lazarus
Edward M. McNally
Employment and Labor:
David H. Williams
Business Litigation Rising Stars:
Meghan A. Adams
Albert J. Carroll
Patricia A. Winston
Medical Malpractice Rising Stars:
Delaware Rejects Adequate Alternative Forum as an Independent Threshold Consideration for Forum Non Conveniens Applications
The Delaware Supreme Court recently issued an important decision clarifying Delaware’s forum non conveniens FNC law in Hupan v. Philip Morris USA, Consol. No. 526, 2016 (Del. 3/22/2018). Delaware FNC law has long permitted defendants otherwise subject to jurisdiction to seek dismissal of an action if defending it in Delaware would result in an “overwhelming hardship.” In Hupan, the court declined the plaintiffs invitation to adopt the rule followed by the federal courts and a majority of state courts, which requires the court to determine first, as a threshold consideration, that an available alternative forum exists. Instead, the court ruled that the availability of an alternative forum should be considered as part of the FNC analysis, but not as outcome determinative if such a forum is lacking. Although the court’s ruling allows for the possibility of an FNC dismissal even when the plaintiff lacks an alternative forum, the decision affords Delaware control over the use of its limited judicial resources and protection of its citizens from overwhelming hardship when the disputes and litigants have no meaningful contact with Delaware. More ›
On April 6, the Delaware Corporation Law Section of the Delaware Bar Association proposed some major and minor amendments to the Delaware Limited Liability Company Act. If introduced in and approved by the Delaware General Assembly and the governor, one of the most significant changes will involve the provisions of the act dealing with series limited liability companies (series LLCs). The proposed amendments are intended to clarify the characteristics of series LLCs and further facilitate their use. More ›
Chambers USA: America's Leading Lawyers for Business Recognizes 15 Morris James Lawyers and Issues 5 Firm Practice Rankings in the 2018 Edition
Thirteen Morris James partners have been named leaders in their respective fields by Chambers USA, and two additional partners were named “recognized practitioners” in Delaware for Corporate/M&A: Alternative Entities. Morris James also received five practice recognitions.
Clarkson Collins Jr.
Lewis H. Lazarus
Edward M. McNally
Brett D. Fallon
Carl N. Kunz III
Stephen M. Miller
Corporate/M&A: Alternative Entities
John M. Bloxom IV
Real Estate & Zoning/Land Use
Labor & Employment**
James H. McMackin III
David H. Williams
Richard K. Herrmann
Mary B. Matterer
* Recognized Practitioner
** Recognized Practice Areas
Third Circuit Dismisses Employees’ Class Action Suit and Finds Chemours’ Severance Plan is not Subject to ERISA
In developing severance plans, employers should take note of the factors courts will consider in determining whether a plan would be considered an “employee welfare benefit plan” under the Employment Retirement Security Act (ERISA). Severance benefits do not implicate ERISA unless they require the establishment and maintenance of a separate and ongoing administrative scheme, and it appears that the employer’s intention is to provide benefits on a regular and long-term basis.
On April 30, 2018, the U.S. Court of Appeals for the Third Circuit affirmed the dismissal of a lawsuit initiated by a class of former employees against Chemours Company under ERISA related to an employee severance plan(Giraradot, et al. v. The Chemours Company). More ›