ABA Section of Business Law
eSource
Delaware Supreme Court Reverses Ryan v. Lyondell, Provides Guidance on Application of Revlon and Director "Good Faith" Duties
- The Delaware Supreme Court, in a unanimous en banc opinion, has reversed the Court of Chancery's denial of a motion for summary judgment filed by directors of a target corporation, Lyondell Chemical Co., and remanded the case with directions to enter judgment in the directors' favor. Lyondell Chemical Co. v, Ryan, No. 401, 2008 (Del. Mar. 25, 2009). The case has been closely followed since the Court of Chancery issued its opinion, which some practitioners found to be overly expansive in applying Revlon principles and in construing recent decisions respectively the directors' duty of good faith.
