• Delaware Chancery Court in Disney Affirms Business Judgment Rule Deference; Failure to Abide by Best Practices Not Tantamount to Fiduciary Duty Breach
  • April 4, 2006
  • Law Firm: Paul, Weiss, Rifkind, Wharton & Garrison LLP - New York Office
  • On August 9, 2005, Chancellor William B. Chandler III issued the much anticipated opinion of the Delaware Court of Chancery in In re The Walt Disney Company Derivative Litigation, a matter described by the court as "something of a public spectacle." Chancellor Chandler held that each director of The Walt Disney Company fulfilled his or her obligation to act in good faith and with honesty of purpose consistent with his or her fiduciary duties under Delaware law in connection with the hiring and termination of Michael Ovitz as the President of Disney. The plaintiff has indicated its intention to appeal.