Abercrombie v. Davies

Seitz, Chancellor:

This is the decision on plaintiffs’ motion for summary judgment. Plaintiffs’' motion asks this Court to declare invalid an agreement between certain stockholders and their agents dealing with corporate stockholder and director action. Plaintiffs are not parties to the agreement which concerns a Delaware corporation of which these plaintiffs are stockholders.

In 1947, a Delaware corporation known as American Independent Oil Company (“American”) was organized to exploit a concession for oil and gas in the Kuwait-Saudi Arabian Neutral Zone in the Middle East. The three…