Litigation

North Carolina Court Applies Delaware Demand Futility Test

By Francis G.X. Pileggi

Courtesy of Mack Sperling of the North Carolina Business Litigation Blog, is a decision summarized here, in which a North Carolina court applied the "demand futility" test under Delaware law because the suit filed in North Carolina was against a Delaware corporation. According to some commentators, it is a rising trend that Delaware law is being applied by courts outside of Delaware in light of some plaintiffs showing an increasing tendency to "try their luck" with non-Delaware judges applying Delaware law. See, e.g., article arguing that Delaware may be losing such cases to other jurisdictions, referenced here. For a Delaware case discussing the Aronson demand futility standard, see, e.g., here.

Full post as published by Delaware Corporate and Commercial Litigation Blog on October 25, 2010 (boomark / email).