Legal Alert - Delaware Legislature Rejects Fee-Shifting Bylaws for Stock Corporations
By John S. Delikanakis
On June 24, Delaware’s Governor signed Senate Bill No. 75 into law and closed the door on the tantalizing prospect of fee shifting (“loser pays”) bylaws for Delaware stock corporations. The full text of the bill can be read here. The heavily negotiated bill is a blunt, legislative reaction to the Delaware Supreme Court’s May 8, 2014 decision in ATP Tour, Inc. v. Deutscher Tennis Bund, 91 A.3d 554 (Del 2014) permitting fee-shifting bylaws for non-stock corporations and discussed in an earlier Legal Alert. See Fee Shifting Bylaw Facially Valid Under Delaware Law here.