

Delaware Law and the “End of History” in Creditor Protection
What should a judge do when creditors claim that they were harmed by management and a board’s carelessness or disloyalty? If the creditors were shareholders, the judge would apply fiduciary duty doctrines to determine liability. Yet it’s unclear what legal doctrines offer creditors redress. In a new chapter, we examine how judges have struggled with that issue over much of American history. We pay special attention to the approach of judges in Delaware, the most important jurisdiction for corporate law. We trace three generations of jurisprudence that each takes a different approach to whether judges should use equitable doctrines to … Read more