October 3, 2024
On October 1, 2024, Partners Jeffrey M. Eilender and Jessica Caterina, representing the CEO and shareholder of RocketStar, Inc. (“RocketStar”), defeated an attempt to prevent a New York court from hearing an Article 78 petition for the books and records of a Delaware corporation on the grounds that only a Delaware court can hear such a claim.
The respondent had moved to dismiss the petition, arguing that the court could not assert jurisdiction over the case because it involved a Delaware corporation and would require the application of Delaware law. In its opinion, the Court adopted the reasoning in Schlam Stone's opposition papers to hold that incorporation in Delaware does not divest New York of its jurisdiction, especially where the only nexus with Delaware is the fact that the company is incorporated there. This decision further solidifies the emerging trend that you can bring an Article 78 petition to access a Delaware company’s books and records if, based on the facts of your client’s case, New York is the more appropriate forum.
Read the full decision here.