The U.S. District Court for the District of Delaware has announced that the J. Caleb Boggs Courthouse and Federal Building re-opened today, Monday, March 23, 2020, after a deep-cleaning that took place this weekend. Other than the Court’s March 19, 2020 Closure Order, all prior orders and notices relating to the COVID-19 virus remain in effect.…
Having been informed that an attorney who recently appeared before the Court has tested positive for COVID-19, the U.S. District Court for the District of Delaware has closed the J. Caleb Boggs U.S. Courthouse and Federal Building until further notice. The Court’s Case Management/Electronic Case Filing remains available. The order can be found here.…
In light of the exigent circumstances created by COVID-19, the U.S. District Court for the District of Delaware has issued standing orders regarding Court operations and access. Key points of the orders include: The District of Delaware will remain open. All case deadlines set by Federal or Local Rule or Court Order remain in effect, although…
On March 18, 2020, President Donald Trump signed into law the Families First Coronavirus Response Act (the “Act”), to provide eligible workers with guaranteed paid sick and family leave and additional resources. Employers will initially pay for the sick and family leave, but eligible employers will be reimbursed by the federal government through refundable tax credits…
In light of the fact that boards of Delaware corporations may have declared dividends before the current crisis arose, we understand that they may be reassessing whether to proceed with payment. While there are many cases indicating that the declaration of a dividend generally creates a debtor-creditor relationship between the corporation and its stockholders that cannot…
In the highly anticipated decision of Salzberg v. Sciabacucchi, No. 346, 2019 (Del. Mar. 18, 2020), the Delaware Supreme Court, reversing the Delaware Court of Chancery’s decision, confirmed the facial validity of provisions in the certificates of incorporation of Blue Apron Holdings, Inc., Stitch Fix, Inc., and Roku, Inc. requiring all claims under the Securities Act…
Melissa Lagoumis, a student at Washington & Lee University School of Law, served as an extern in the Delaware Court of Chancery under Vice Chancellor Slights. In her article she describes the life-changing challenges and rewards she experienced while working in Delaware’s esteemed Chancery Court. Melissa will join Richards, Layton & Finger in September 2020.…
The Delaware Superior Court recently sided with a non-recourse lender by enforcing full recourse against the guarantor of a multimillion-dollar loan after certain covenants were recorded on the mortgaged property without the lender’s consent. In Wilmington – 5190 Brandywine Parkway, LLC v. Acadia Brandywine Holdings, LLC, CA No. N17C-04-061 (Feb. 7, 2020), the Delaware Superior Court,…
In McElrath v. Kalanick, the Delaware Supreme Court affirmed the Chancery Court’s opinion dismissing derivative claims challenging a board’s approval of what “[b]y any reasonable measure” was found to be “a flawed transaction.” In rejecting the plaintiff’s arguments that questioned the disinterestedness and independence of a majority of the director defendants, the Court made clear that…
This publication, which highlights recent corporate and alternative entity cases and statutory developments in Delaware, continues our long tradition of providing insight into the development of Delaware law.