Law School Case Briefs

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Parfi Holding AB v. Mirror Image Internet, Inc.

Supreme Court of Delaware (2002) | 817 A.2d 149; 2002 Del. LEXIS 679; 2002 WL 31477125

4 min read

TL;DR: Minority stockholders sued a controlling stockholder for breach of fiduciary duty. The court held these claims, arising from corporate law, were not subject to a broad arbitration clause in the stock purchase agreement because the duties existed independently of the contract.

Legal Significance: Establishes that general, broad arbitration clauses in contracts do not, by themselves, waive a stockholder's right to litigate distinct breach of fiduciary duty claims in court. Such duties are statutory and exist independently of the contract creating the stockholder relationship.

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