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: Delaware Business Litigation ReportCourt Of Chancery Establishes Law On Double Derivative Litigation
By Edward M. McNally
Hamilton Partners LP v. Englard, C.A. 4476-VCL ( December 15, 2010)
This is an important decision dealing with the often confusing law on double derivative suits. Briefly, the decision holds: (1) there is no need for there to be jurisdiction over a parent in a double derivative suit when there is jurisdiction over the Delaware subsidiary; (2) demand futility is measured at the parent level and (3) there is a derivative claim for the breach of duties owed to the subsidiary. This last point is worth closer examination as the board of a subsidiary may act at the direction of its parent without liability. Here some very odd facts lead to this result.
Full post as published by Delaware Business Litigation Report on December 15, 2010 (boomark / email).
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