In United Technologies Corp. v. Treppel, the
Delaware Supreme Court unanimously reversed
the Court of Chancery’s ruling denying the
defendant’s request to restrict the use of information
obtained in plaintiff’s inspection of
books and records to actions in the Delaware
courts. The opinion sends a clear signal that
the Delaware Supreme Court is in favor of
forum selection bylaws, which have previously
been upheld in the Court of Chancery, and
that the Court of Chancery has broad power
to limit the nature and scope of an inspection
of books and records pursuant to Section
220 of the Delaware General Corporation
Law (DGCL).