Professor Stephen Bainbridge‘s corporate law scholarship is often cited by Delaware’s Supreme Court and Court of Chancery in their corporate law opinions. The good professor is a friend of this blog and one of the most prolific corporate law experts in the country. He has recently published an article that argues in favor of fee-shifting bylaws. This adds to the burgeoning literature on this cutting edge issue in corporate litigation, and is must reading for anyone interested in this topic. See generally, recent law review article by Justice Ridgely of the Delaware Supreme Court, appearing on these pages. See also, recent article from Bloomberg BNA about pending Chancery case involving fee-shifting bylaws.
Supplement: Professor Bainbridge penned a follow-up article to the above piece that addresses the “public choice” issues regarding fee-shifting bylaws. More commentary, linked by the good professor, available from others here and here.