Delaware Supreme Court Building
In a recent decision, the Delaware Supreme Court affirmed a ruling of the Delaware Superior Court that Delaware has a more significant relationship than California to a directors’ and officers’ liability insurance policy (D&O policy), at least when the dispute involves a Delaware corporation and its directors and officers. This case is part of a continuing trend in the case law showing a growing tension between Delaware courts and other state courts regarding important and consequential choice of law issues. See Christopher B. Chuff, et al., “Delaware Court of Chancery Tells California To Get Off Its Lawn,” Troutman Pepper Insights, (last updated Aug. 17, 2020); Joanna J. Cline, et al., “Court of Chancery Speaks on an Increasingly Common Choice of Law Issue,” Delaware Business Court Insider, (last updated Nov. 25, 2020).
Specifically, in RSUI Indemnity v. Murdock, (Del. Mar. 3, 2021), the Supreme Court considered whether the D&O policy at issue, which insured the directors and officers of a Delaware corporation but was negotiated and issued in California, should be interpreted under Delaware or California law. Justice Gary Traynor, writing for the court, concluded that Delaware has the most significant relationship to D&O policy disputes involving Delaware companies and, therefore, the court interpreted the policy in question under Delaware law.
Background
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
