Following trial in In re John Q. Hammons Hotels Inc. Shareholder Litigation, the Court of Chancery ruled in favor of defendants, finding that the merger price was fair value, that controlling stockholder John Q. Hammons did not breach his fiduciary duties, and that the third-party acquirers did not aid and abet a (nonexistent) fiduciary duty breach.

In a recent case, the Delaware Court of Chancery addressed cross-motions for summary judgment in a case involving defendants Crescent Private Capital, L.P., a Delaware limited partnership, and Crescent Gate Partners, L.L.C., a Delaware limited liability company.

This Q&A from Practical Law Company gives an overview of Delaware's unique legal system.

In Claybrook v. Autozone Texas, L.P., the Delaware Bankruptcy Court awarded costs to the defendants based in part on the court’s finding that the plaintiff-trustee failed to demonstrate a viable basis for his claims against the defendants.

The Third Circuit held that two liability insurance carriers have standing to object to their insured’s plan of reorganization because “when a federal court gives its approval to a plan that allows a party to put its hands into other people’s pockets, the ones with the pockets are entitled to be fully heard and to have their legitimate objections addressed.”

In Marcal, the Third Circuit addressed an issue of first impression under the Employee Retirement Income Security Act as amended by the Multiemployer Pension Plan Amendments Act: Can the portion of withdrawal liability attributable to post-petition services qualify as an administrative expense of the debtor’s estate?

Legislation effective for tax periods after December 31, 2010, requires non-resident sellers of Delaware real estate to report and remit an estimated state income tax on capital gains realized from the sale of that real estate.

In Airgas, Inc. v. Air Products and Chemicals, Inc., the Delaware Supreme Court reversed the ruling of the Delaware Chancery Court upholding the validity of a stockholder-proposed bylaw accelerating Airgas’s annual meeting by approximately eight months.

Delaware Bankruptcy Judge Shannon holds in the Accuride chapter 11 case that a noteholder, who gave erroneous information to the debtor in its subscription to a rights offering for new notes pursuant to a plan, was not entitled to an additional distribution to cover the difference in value between what it thought it was subscribing for and what it actually submitted to the debtor in its subscription form.