Main Menu



Exclusive Forum Selection Bylaws: Enforceability and Effectiveness


On September 8, 2014, the Delaware Chancery Court upheld a newly adopted bylaw of a Delaware corporation that designated an exclusive forum outside Delaware for litigating intra-company disputes (See City of Providence v. First Citizens Bancshares, Inc., et al., C.A. No. 9795-CB (Del. Ch. 2014)).  This case is the most recent holding in a line of decisions that validate corporate actions to minimize the costs and uncertainty of multi-state litigation by establishing an exclusive forum to litigate increasingly common lawsuits arising out of M&A transactions, while still preserving stockholder rights.  The full alert is available here.

Practice Areas

Back to Page

We use cookies on our website to improve functionality and performance, analyze website traffic and enable social media features. By continuing to use our website, you agree to our use of cookies.