Justia Delaware Supreme Court Opinion Summaries

Articles Posted in May, 2012
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Central Laborers instituted this action under Section 220 of the Delaware General Corporation Law, Del. Code Ann. tit. 8, section 220, to compel News Corp. to produce its books and records related to its acquisition of Shine. The court held that Section 220 permitted a stockholder to inspect books and records of a corporation if the stockholder complied with the procedural requirements of the statute and then showed a proper purpose for the inspection. Section 220 required a stockholder seeking to inspect books and records to establish that such stockholder had complied with the form and manner of making demand for inspection of such documents. Central Laborers had not made that showing. Because Central Laborers' Inspection Demand did not satisfy the procedural requirements of Section 220, it did not establish its standing to inspect the books and records of News Corp. On that basis alone, and without reaching the issue of proper purpose, the court affirmed the judgment. View "Central Laborers Pension Fund v. News Corp." on Justia Law

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Acting as settlors, Wilbert and Genevieve Gore signed two separate trust instruments in 1972 - the May Instrument and the October Instrument - both purporting to transfer the same property into the Pokeberry Trust. Susan Gore, one of their daughters, claimed that the earlier May Instrument controlled while the other four siblings contended that the settlors never intended the May Instrument to be final and enforceable. The Vice Chancellor rejected Susan's claims and she, along with her children, appealed. The court found none of Susan's claims had merit and affirmed the judgment. View "Otto, et al v. Gore, et al.; Gore v. Gore, et al; Otto v. Gore, et al." on Justia Law

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RAA appealed from a final judgment of the Superior Court that dismissed its complaint pursuant to Rule 12(b)(6). RAA's complaint alleged that Savage told RAA, one of several potential bidders for Savage, at the outset of their discussions that there was "no significant unrecorded liabilities or claims against Savage," but then during RAA's due diligence into Savage, Savage disclosed three such matters, which caused RAA to abandon negotiations for the transactions. The complaint contended that had RAA known of those matters at the outset, it never would have proceeded to consider purchasing Savage. Therefore, according to RAA, Savage should be liable for the entirety of RAA's alleged $1.2 million in due diligence and negotiation costs. The court held that, under Paragraphs 7 and 8 of the non-disclosure agreement (NDA), RAA acknowledged that in the event no final "Sale Agreement" on a transaction was reached, Savage would have no liability, and could not be sued, for any allegedly inaccurate or incomplete information provided by Savage to RAA during the due diligence process. The court also held that RAA could not rely on the peculiar-knowledge exception to support its claims. Finally, the court held that, when Savage and RAA entered into the NDA, both parties knew how the non-reliance clauses had been construed by Delaware courts. Accordingly, the court affirmed the judgment. View "RAA Management, LLC v. Savage Sports Holdings, Inc." on Justia Law

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The court reviewed the Superior Court's denial of a motion to suppress stemming from a traffic stop. Because the officer lacked reasonable suspicion, the court reversed the trial judge's denial of the motion to suppress drugs discovered in defendant's bag. Defendant's continued detention constituted an impermissible seizure, and the questioning itself violated even the limited rights possessed by a probationer. Accordingly, the court reversed the judgment. View "Murray v. State" on Justia Law

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Defendant was found guilty on four charges related to the sexual assault of two minors. At issue was the use of out-of-court statements in criminal prosecutions. The court found that, in this case, the inadmissible comments were made in court, when the interviewer explained the protocol used for interviewing children about sexual abuse. The interviewer offered her opinion that the protocol made it "very obvious when [children] are being truthful." Therefore, that was impermissible vouching and required reversal. View "Richardson v. State" on Justia Law