Rutledge v. Clearway Energy Group LLC
The Delaware Supreme Court upheld corporate law changes that make equitable relief and damages unavailable for certain transactions involving controlling shareholders that satisfy a new “safe harbor” set out in the statute. Those changes were a lawful exercise of the legislature’s authority to alter the substantive standard of review for those transactions, the court held, not an unconstitutional stripping of the Chancery Court’s jurisdiction over equitable claims. The state high court also held that retroactive application of the safe harbor did not violate due process by extinguishing any vested right in a cause of action.
Related Commentary
State Court Oral Arguments to Watch for in November
Issues on the dockets include indigent defense crises in multiple states, what’s been called a “de facto repeal” of citizens’ initiative power, and a voter-approved ban on large-capacity magazines.