Court of Chancery Denies Answer Amendment On Public Policy Grounds
Oliver, et al. v. Boston University., et al., C.A. No. 16570-NC (Del. Ch. Jan. 28, 2005).
Plaintiff filed a motion to amend its answer to limit its liability exposure to its shareholders in a publicly traded corporation, by asserting an affirmative defense under the law of Massachusetts.
This matter involved the defendant's motion to amend its answer to assert an affirmative defense under the law of Massachusetts, limiting its monetary liability to $20,000.
The court held that permitting the defendant to limit its potential liability to shareholders of a publicly traded Delaware corporation was against the public policy of this state. The court therefore denied the defendant's motion to amend.
Authored by:
Raj Srivatsan
302-888 6831
rsrivatsan@morrisjames.com
