Kaplan v. Wyatt

McNEILLY, Justice.

Jerome Kaplan, a shareholder of the Coastal Corporation (Coastal), appeals from the Court of Chancery’s decision in favor of Coastal’s Special Litigation Committee motion to dismiss Kaplan’s derivative suit. The primary issue on appeal is whether the Court of Chancery erred in its application of the guidelines for granting a corporation’s request to dismiss a derivative suit as set forth in this Court’s decision of Zapata v. Maldonado, Del.Supr., 430 A.2d 779 (1981). We conclude that the Court of Chancery correctly formulated and applied the guidelines of Zapata.

I

The factual…