Court Sanctions Forum Selection Arrangements and Confirms Power to Restrict Books and Records Inspections
March 2015
Publication| Corporate Transactions| Corporate & Chancery Litigation
In United Technologies Corp. v. Treppel, theDelaware Supreme Court unanimously reversedthe Court of Chancery’s ruling denying thedefendant’s request to restrict the use of informationobtained in plaintiff’s inspection ofbooks and records to actions in the Delawarecourts. The opinion sends a clear signal thatthe Delaware Supreme Court is in favor offorum selection bylaws, which have previouslybeen upheld in the Court of Chancery, andthat the Court of Chancery has broad powerto limit the nature and scope of an inspectionof books and records pursuant to Section220 of the Delaware General CorporationLaw (DGCL).