Delaware Chancery Court Upholds Forum Selection Bylaws

The Delaware Court of  Chancery upheld the validity of forum selection bylaws that had been adopted by the directors of Chevron and FedEx. Other companies have adopted similar provisions, which make Delaware courts the exclusive forum for lawsuits dealing with corporate governance matters and are, in the words of the law firm that represented Chevron and authored this post, a “potentially powerful tool in responding to the problem of multi-forum litigation and protecting stockholders’ interests against duplicative litigation.”