Fee Shifting Bylaws in Delaware: The Facts on the Ground (Part 6)
The fee shifting bylaw adopted by and challenged in Kastis v. Carter was, apparently, adopted not primarily to have an effect on the federal cause of action. At the hearing, this colloquy occurred.
- MR. GRANT: But I think, principally, they would be interested in depositions and ask the question, why did you adopt this bylaw?
- THE COURT: Okay.
- MR. GRANT: And I think they would find out that this Kastis litigation is not the principal reason. I think they'll find out that there's securities litigation in the Eastern District of Pennsylvania which is really the central reason for adoption of the bylaw.
- THE COURT: I see. Okay.
Primary materials, including the hearing transcript, in Kastis v. Carter can be found at the DU Corporate Governance web site.