Delaware Real Estate Law Update: Commercial Loan Insurance Requirements Now Enforceable
On July 27, 2010, Governor Markell signed into law House Bill 371, which corrected a long standing problem for lenders making commercial loans in Delaware.
Judge Stark Sworn in as Judge for the District of Delaware
On August 16, 2010, Leonard P. Stark was sworn in as a U.S. District Court Judge for the District of Delaware.
Chancery Court Analysis of Rights Plan with a 20% Trigger: Yucaipa American Alliance Fund II, L.P. v. Riggio et al.
In Yucaipa v. Riggio, the Delaware Court of Chancery confirmed in a post-trial decision that a board's decision to adopt and maintain a stockholder rights plan triggered upon the acquisition of beneficial ownership of more than 20% of the company's shares is subject to Unocal review, even where the board "grandfathers" an existing significant stockholder from the operation of the plan.
Delaware Real Estate Law Update
Delaware Real Estate law information pertaining to changes for leasehold mortgages, private transfer fees, and homeowners' association authority to regulate demolition.
Delaware Real Estate Law Update: Changes for Leasehold Mortgages
On July 23, 2010, Governor Markell signed into law a bill that clarifies a long-standing ambiguity in Delaware law regarding leasehold mortgages.
Delaware Real Estate Law Update: Delaware Prohibits Private Transfer Fees
On July 27, 2010, Governor Markell signed into law Senate Bill 322 prohibiting the charging of so-called private transfer fees on the transfer of real property.
Delaware Real Estate Law Update: Homeowners’ Association Authority to Regulate Demolition
The Delaware Court of Chancery has recently held that where a restrictive covenant requires homeowners’ association approval of changes or alterations to buildings in a development, such approval is not required for a homeowner to demolish the homeowner’s house where no replacement structure is planned.
Recent Delaware Corporate Law Decisions
During the past few months, several cases in the Delaware courts have raised important issues for Delaware corporations and their advisors.
Prizm Group, Inc. v. Anderson – Court of Chancery Holds that Unsecured Promissory Note Not Valid Consideration for Issuance of Stock of a Delaware Corporation Under Pre-August 2004 DGCL
In Prizm Group, Inc. v. Anderson, C.A. No. 4060-VCP (Del. Ch. May 10, 2010), Prizm Group, Inc., a Delaware corporation, sought a declaration that Mark E. Anderson, who was issued common stock of Prizm in exchange for an unsecured promissory note, had failed to provide valid consideration for the shares and that the shares were void ab initio or voidable at the election of Prizm.
King v. VeriFone Holdings, Inc. and Baca v. Insight Enterprises, Inc. – Court of Chancery Dismisses Books and Records Actions Filed After Derivative Actions
In two recent decisions, the Court of Chancery dismissed books and records actions under 8 Del. C. § 220 (“Section 220”) that were filed after the plaintiffs had filed derivative actions.