California Court of Appeal Upholds Exclusive Forum Bylaw

On December 21, 2018, the California Court of Appeal decided Drulias v. 1st Century Bancshares, Inc., No. H045049 (Cal. Ct. App. 6th Dist. Dec. 21, 2018), in which it upheld the enforceability of forum-selection bylaws for corporations incorporated in Delaware that designated the Delaware Court of Chancery as the exclusive forum for stockholder litigation. California, thus, joins a growing number of states—such as Illinois, Texas and New York—that have recognized the validity of exclusive forum bylaws. The court’s opinion is available here.