Chancery Applied New York Substantive Law and Delaware Procedural Law

MPEG LA, L.L.C. v. Dell Global B.V., C.A. No. 7016-VCP (Del. Ch. March 6, 2013).Delaware

This case is noteworthy for purposes of Delaware corporate and commercial law, to the extent that it addresses an issue raised because the defendants sought the application of the New York Rules of Civil Procedure for purposes of the substantive law in the case.  The case involves a contract dispute and the parties selected New York substantive law as their choice of law.

The court observed that the general rule is that the law of the forum state usually applies to procedural issues.  See cases cited at footnote 8.  The only exception to that general rule is where the procedural law of the forum state is “inseparably interwoven with substantive rights.”  The court concluded that that was not the situation involved in this matter, and therefore, the court refused to apply the procedural rules of New York to the issues in this case.