Many legal publications and the mainstream press follow decisions of the Delaware Court of Chancery. One of the more astute members of the cognoscenti is Alison Frankel of Thomson Reuters who often writes about the First State’s corporate decisions. She recently penned an article entitled: “Delaware Judges: Will Plaintiffs Never Learn,” regarding a recent decision in South v. Baker, highlighted on these pages, and other recent cases, in which the Delaware Court of Chancery found that a plaintiff and his lawyer in a derivative case acted disloyally to the extent that they did not adequately represent those on whose behalf they were acting as representatives and fiduciaries. She noted that this is just the latest in a string of recent cases from the court which is frequently reminding litigants and their attorneys that high standards will be maintained, and cases (or their representatives) who fail to meet the standard will be shown the courthouse doors. In my view, the court is not announcing new standards in these cases. Rather, it is underscoring and adding an exclamation point to longstanding standards of excellence.
Ms. Frankel also published a recent article that commented on a separate decision of the court, in Seibold v. Camulos, also featured here, in which the court suggested that the parties may not have focused on a financial analysis of the litigation when determining the manner in which they litigated a dispute involving a few million dollars.
LexisNexis graciously republished this post on their Corporate and Securities Law site.