Court Of Chancery Explains Priority Rule In Merger Litigation

Dias v. Purches, C.A. 7199-VCG (March 5, 2012)

It is often thought that the jurisdiction where suit is first-filed will obtain priority over later filed actions.  As this decision makes clear, that is not true when the litigation involves a representative action and Delaware corporate law applies.  For in that case, the Delaware courts will apply the doctrine of forum non conveniens that gives only slight weight to where the first suit was filed.  More important in class or derivative actions is Delaware's interest in applying its corporate law to Delaware entities.

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