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: Delaware Business Litigation ReportCourt of Chancery Denies Jurisdiction Over Stock Appreciation Rights Suit
By Morris James LLP
Testa v. Nixon Uniform Service, Inc., C.A.3886-VCS (Del. Ch. Nov. 21, 2008)
In a novel attempt to invoke the jurisdiction of the Court of Chancery, the plaintiff tried to rely upon Section 111(a)(2) of the Delaware General Corporation Law that provides the Court of Chancery jurisdiction in disputes over stock. Here the plaintiff was really seeking money damages for the failure to be paid the full value of his SARs. The court held this was a claim for money damages that it did not have jurisdiction to decide, not a claim over ownership of stock.
Full post as published by Delaware Business Litigation Report on November 21, 2008 (boomark / email).
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