A recent decision from the Delaware Supreme Court regarding fee-shifting in corporate litigation has provoked howls of protest from the shareholder plaintiffs’ bar, an aggressive interpretation from some quarters of the defense bar, and even the specter of immediate legislative reform in Delaware.
The case, ATP Tour v. Deutscher Tennis Bund, concerned the internal organization of ATP, a non-stock Delaware membership corporation that operates a men’s tennis tour. ATP’s members include tennis pros and entities that operate professional tennis tournaments. ATP’s bylaws contain a provision that shifts attorney’s fees to unsuccessful plaintiffs in “intracorporate” litigation, including derivative lawsuits and claims by ATP’s members against the company for breach of duty.
