Fee-shifting Bylaws: Coming Soon to a State Near You?PDF
Warren Koshofer's article, "Fee-shifting Bylaws: Coming Soon to a State Near You?," was published in the Daily Journal on July 18, 2014.
From the article...
"The attorney fees and related costs incurred defending intra-corporate claims of alleged breach of fiduciary duty are often daunting. Under the prevailing "America Rule," the defending members, officers or directors are generally left to shoulder the cost of their defense. The door for this to change, however, may have been opened with the Delaware Supreme Court's recent ruling in ATP Tour Inc. v. Deutscher Tennis Bund, 534, 2013 (Del. May 8, 2014). There, the Delaware Supreme Court was asked to analyze a fee-shifting bylaw provision of ATP Tour Inc., a nonstock corporation that operates a men's professional tennis tour."
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