Recent Development Regarding Fee Shifting By-Laws Under ATP Tour

In ATP Tour, Inc. v. Deutscher Tennis Bund, the Delaware Supreme Court ruled that the board of a Delaware non-stock corporation may adopt a fee-shifting by-law that requires a plaintiff-stockholder to pay the corporation’s legal expenses if (i) the fee-shifting by-law is not adopted or used for an inequitable purpose and (ii) the plaintiff-stockholder that […]