An Introduction to the Law of Corporations: Cases and Materials
Tooley v. Donaldson Lufkin, & Jenrette, Inc.
In Tooley, the court was asked to determine whether shareholder litigation is direct or derivative. Rather than rely on a more traditional, and cumbersome, "special injury" test, the court in Tooley announced a new, simpler test for determining whether a stockholder action is direct or derivative. Since Tooley other jurisdictions, like New York, have abandoned their own versions of the special injury in favor of specifically adopting Delaware's Tooley standard.
Delaware Supreme Court
845 A.2d 1031
This book, and all H2O books, are Creative Commons licensed for sharing and re-use. Material included from the American Legal Institute is reproduced with permission and is exempted from the open license.