Shirvanian v. DeFrates

OPINION ON REHEARING

WANDA McKEE FOWLER, Justice.

We originally issued an opinion on January 8, 2004 in favor of the appellants, the Shirvanians, holding that the suit they brought against the appellees was a direct action — not a derivative suit — and therefore not barred by an earlier derivative suit against appellees. That decision applied Delaware law. However, while the appeal was on motion for rehearing, the Delaware Supreme Court issued an opinion clarifying when a suit is derivative in that state. Tooley v. Donaldson, Lufkin & Jenrette, Inc., 845 A.2d 1081 (Del.2004). Based on the…