Delaware Corporate Law in Bankruptcy Cases
Issues of Delaware corporate law often arise in connection with bankruptcy cases around the country, and now there is a formal procedure to certify those questions to ask the Delaware Supreme Court to address them in an authoritative manner. Professor Verity Winship has written an article on the topic which she describes as follows:
It is the only piece I know of that addresses a cutting edge issue in Delaware corporate law: how thorny issues of Delaware law are resolved when they arise in complex bankruptcy proceedings. Last fall, the Delaware legislature took the final steps to permit bankruptcy courts from across the country to certify questions of law to the Delaware Supreme Court. This piece provides a concise and timely analysis of this innovation, putting it into the context of bankruptcy certification nationwide and the Delaware experience with certification.
The article is available at this link. By way of example only, we highlighted a decision a few years ago on these pages that addresses an important issue about the fiduciary duty of an officer of a Delaware corporation prior to any definitive ruling on the issue by the Delaware Supreme Court.