Will Current Financial Crisis Lead to Federalization of Corporate Law Governed Now By Delaware?
The National Law Journal's article today by Marcia Coyle, titled "Delaware Courts in Crosshairs", here, describes the perennial risk that Congress will respond to popular pressure and try to find a federal regulatory solution to the most recent round of problems now facing corporate America. The article quotes several corporate law professors, such as Gordon Smith, who posts about the article here on his blog called The Conglomerate.
Yours truly is also quoted in the article as follows:
Corporate litigator Francis G.X. Pileggi, partner in the Wilmington, Del., office of Philadelphia-based Fox Rothschild, agreed, saying, "I think there are plenty of examples where Delaware courts have taken directors to task for not fulfilling their fiduciary duties. They have to rule on the case in front of them. If the case has facts that allow them to apply the law, they do so."
