Delaware Court of Chancery Issues Guidelines for Attorneys
The Delaware Court of Chancery has issued Guidelines to Help Lawyers Practicing before the Court. Chancery Court Guidelines.pdf This guidance may be particularly helpful to attorneys unfamiliar with the level of civility expected of the Delaware Bar. The guidelines also include advice on "best practice, which are informative even for seasoned practioners. Here are some excerpts from the new guidelines:
Will Delaware's Medical Marijuana Law Go Up In Smoke?
Delaware legalized marijuana for medicinal uses in May 2010. The law provides that Delaware residents with certain specific medical conditions will be able to legally purchase marijuana at "compassion centers" in the State. While the law is now technically in effect, there are no compassion centers to make a purchase. That's because the Delaware Department of Health and Social Services has not yet issued the needed regulations. The law requires the DHSS to issue the regulations by July 1, 2012.
Employees’ Secret Tape Recordings
Can an employee lawfully make a secret tape recording of a conversation that she has with her supervisor, a coworker, or customer that occurs in the workplace? Not in Delaware. Delaware is an “all-party consent State,” which means that a private conversation cannot be recorded without the consent of all of the parties participating in the conversation. This applies to telephone calls as well as to in-person conversations. Some states, such as Maryland, are “one-party consent States,” which means that only one of the parties involved must consent to the recording. (Think Linda Tripp, for example.)
Chancery Court Decision Provides Insight Into Drafting Enforceable Forum Selection Clauses
The Delaware Court of Chancery is nationally respected for its consistent and conscientious decisions in cases involving complex business issues. As a result, many legal practitioners recommend that contracting parties include a forum selection clause requiring that any disputes arising from a given contract be heard by a court of competent jurisdiction in the State of Delaware, including the Court of Chancery. A recent case in the Delaware Court of Chancery provides insight into the effective enforcement of a forum-selection clause.
'Cat's-paw' decision has broader implications (pdf).
What is the "cat's-paw' theory, and why should Delaware employers care?
A recent decision from the Third U.S. Circuit Court of Appeals (which
includes Delaware) helps explain.
Disaster preparedness in the wake of Delaware's recent disasters
Many Delaware residents experienced their first earthquake this summer.
On the heels of the earthquake came hurricanes Irene and Lee, which left
a path of destruction in the form of flooding and power outages
throughout the region. How, as an HR professional, do you advise
management to handle these crises ― whether they're fleeting or result in
a more drastic or lasting impact?
Court Denies Preliminary Injunction Based on Insufficient Record
While the Court of Chancery will frequently enjoin parties from engaging in unfair competitive activities, the standard for obtaining preliminary injunctive relief remains high. It is important for parties seeking injunctive relief to be able to provide the court with specific, admissible evidence of unfair competitive activities. Generalized allegations normally will be insufficient to allow the court to grant relief. Take for example a recent case involving the purchaser of a company’s assets who sought to enforce a noncompete against one of the company’s former employees.
Social-Networking-Policy Fever Continues in Delaware
Employees of Delaware’s capital may soon be subject to a social-networking policy. The City of Dover has proposed a new policy on employees’ on-duty and off-duty use of social-media sites, such as Facebook, Twitter, and YouTube, reports The News Journal.
Delaware's Workplace Fraud Act to Expand Again?
Delaware’s Workplace Fraud Act , passed in July 2009, currently prohibits employers in the construction services industry from misclassifying employees as independent contractors. An employer who misclassifies its employees—intentionally or unintentionally—may be subject to civil penalties of up to $5,000 per misclassified employee; restitution obligations; stop-work orders; debarment from public contracts; and civil suit by the aggrieve employee(s).
Using Survival Clauses in Employment Contracts to Shorten Employer Liability
A recent Court of Chancery opinion, addressing survival clauses in transactional contracts, provides guidance on the use of contractual statutes of limitations in employment contracts. In the case of GRT, Inc. v. Marathon GTF Technology, Ltd., the Court ruled on a contract governing a joint venture between two businesses in the natural gas industry. The Plaintiff, an investor, contracted with the Defendant to build a testing facility to allow the Plaintiff to conduct research related to new technologies. Because the testing facility involved the Defendant’s proprietary technology, the Plaintiff was not permitted to inspect the facility until the contract establishing the joint venture had been executed. In order to protect the Plaintiff’s investment, the parties’ contract included a Survival Clause.
