A short, one-page decision issued last month by a Louisiana judge could have a big impact for Delaware corporations because it was the first time an outside jurisdiction has enforced an exclusive forum provision requiring shareholder lawsuits be resolved by the Delaware Court of Chancery. Legal analysts and attorneys view the ruling as a big victory for Delaware, but caution that other jurisdictions may not be so receptive to the provisions.
“You can’t prevent someone from going to another jurisdiction and arguing that the provision doesn’t properly apply,” said Lawrence A. Hamermesh, a corporate law professor at Widener University School of Law. “It’s going to be up to the other courts in other states if they respect these provisions.”
