Corporate
Jul. 19, 2014
Fee-shifting bylaws: coming soon to a state near you?
After a recent Delaware Supreme Court opinion, California corporations may want to consider adopting fee-shifting bylaws as a means of deterring future, nonmeritorious shareholder derivative suits. By Warren A. Koshofer
The attorney fees and related costs incurred defending intra-corporate claims of alleged breach of fiduciary duty are often daunting. Under the prevailing "America Rule," the defending members, officers or directors are generally left to shoulder the cost of their defense. The door for this to change, however, may have been opened with the Delaware Supreme Court's recent ruling in ATP Tour Inc. v. Deutscher Tennis Bund, ...
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