In response to the wasteful and burdensome trend of multiforum shareholder litigation, many companies have recently enacted forum selection bylaws designating a single jurisdiction for fiduciary duty claims and other intra-corporate litigation.
In the past, some courts outside Delaware displayed a reluctance to enforce such bylaws; however, Delaware courts have since upheld their validity as a general matter. Undeterred, some plaintiffs have continued to bring suits outside bylaw-designated forums, forcing courts outside the state to decide the issue in light of the recent Delaware decisions. On Dec. 12, the Superior Court of California for Alameda County enforced one of these bylaws, a key development in the evolving jurisprudence regarding their enforceability.
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