In June 2013, the Delaware Court of Chancery upheld the enforceability of forum selection bylaws in the Chevron/FedEx case. Plaintiffs in that case appealed the decision, but last week voluntarily dismissed their appeal. It was widely expected that the Delaware Supreme Court would affirm the Chancery Court’s decision. Delaware public companies waiting for the outcome of the Chevron/FedEx appeal or that have not yet determined whether to adopt forum selection bylaw provisions should give serious consideration to the adoption of a forum selection bylaw at this time. A forum selection bylaw can greatly reduce the costs and complexities associated with certain types of multi-jurisdiction litigation and provide greater certainty in outcomes, to the benefit all stockholders.
A link to our original eUpdate discussing the opinion from the Delaware Court of Chancery can be found here and a link to the June 25th opinion can be found here.
