The Court of Chancery recently explained who must receive notice in order to satisfy the requirements of 6 Del. C. § 18-110, which provides a summary procedure for LLCs, similar to § 225 for corporations, to determine the proper manager of an LLC. In HREF Senior Worthington LLC v. Conroe WN LLC, C.A.
Court of Chancery Updates
Chancery Interprets Delaware Rapid Arbitration Act
By Francis Pileggi on
Posted in Court of Chancery Updates
A recent Delaware Court of Chancery decision interpreted the Delaware Rapid Arbitration Act (“DRAA”), about which there is a relative paucity of published opinions. See OBI Pharma, Inc. v. Biosion, Inc., C.A. No. 2025-0965-KSJM (Del. Ch. Sept. 26, 2025).
This short letter ruling addressed an issue regarding the appointment of a panel of…
Vice Chancellor Expresses Concern Over Reduced Civility in Delaware Bar
By Francis Pileggi on
Posted in Court of Chancery Updates
In a postscript to a recent ruling from the bench, a vice chancellor of the Court of Chancery made a thoughtful observation about her concerns regarding an apparent change in the tradition of civility among members of the Delaware Bar. In a Law.com article that discussed the observation, yours truly was quoted.
An overview of…
Chancery Rejects Relevance of Personal Data About CEO
By Francis Pileggi on
Posted in Court of Chancery Updates
A recent Delaware Court of Chancery ruling addressed the scope of discovery in connection with a dispute about a failed merger to the extent that “deeply personal” and embarrassing information about a CEO was sought, purportedly in connection with the role the CEO played in the alleged failure of his company to use contractually mandated…
Chancery Determines Proper Board Membership in § 225 Action
By Francis Pileggi on
Posted in Court of Chancery Updates
The Delaware Court of Chancery recently determined the proper composition of a board in a proceeding under DGCL § 225 styled as Rainbow Mountain Inc. v. Begeman, C.A. No. 2018-0403-PAF (Del. Ch. August 25, 2025).
This case involved a dispute among 5 siblings and their extended family over the management and ownership of Virginia…
Chancery Court lets bankruptcy admin press suit against ex-pharma D&Os
By Francis Pileggi on
Posted in Court of Chancery Updates
Frank Reynolds, who has been covering Delaware corporate decisions for various national publications for over 40 years, prepared this article.
The Court of Chancery recently refused to dismiss most of the unique Caremark claims a bankruptcy administrator brought against former Teligent Inc. directors and officers who allegedly wrecked their pharmaceutical company by failing to monitor…
Delaware Computer Crime Counterclaim Dismissed for Lack of Extraterritorial Effect
By Francis Pileggi on
Posted in Court of Chancery Updates
This article was prepared by Keith Walter, a partner in the Delaware Office of Lewis Brisbois.
In Sarwal v. Nephrosant, Inc., C.A. No. 2023-0222-BWD (Del. Ch. Aug. 28, 2025), the Court of Chancery addressed a counterclaim brought under the Delaware Computer Related Offenses Act in an action in which the plaintiff sought advancement and indemnification…
Chancery Explains Nuances of § 273 Dissolution Requirements
By Francis Pileggi on
Posted in Court of Chancery Updates
A recent Delaware Court of Chancery decision is a gem for those seeking the latest iteration of Delaware law on the requirements of DGCL § 273 regarding judicial dissolution of a joint venture corporation. In the matter styled: In Re Petition for Dissolution of M7 Energy Development Corporation and Convergent Innovation Technology Holdings, Inc.…
Chancery Awards Fees for Breach of Forum Selection Clause
By Francis Pileggi on
Posted in Court of Chancery Updates
A recent Delaware Court of Chancery decision awarded fees incurred to defend a lawsuit that was filed in a forum contrary to the forum selection clause of the parties’ agreement, as well as the fees incurred in connection with enforcing the forum selection clause. In Namdar v. Fried, C.A. No. 2024-0535-JTL (Del. Ch. June…
Chancery Clarifies Requirements to Bar Claims Based on Extra-Contractual Statements
By Francis Pileggi on
Posted in Court of Chancery Updates
Helpful reminders about the requirements for limiting the ability to make claims based on extra-contractual statements are featured in the pithy letter ruling from the Court of Chancery in Park7 Student Housing LLC, v. PR III/Park7 SH Holdings, LLC, C.A. No. 2025-0167-MTZ (Del. Ch. June 20, 2025). The Court reiterates the well-established rules of…