United Technologies Corp., a Delaware Corporation, Defendant-Below, Appellant v. Lawrence Treppel, Plaintiff-Below…

Summary

The Supreme Court of Delaware held that the Court of Chancery has statutory authority under Section 220(c) to condition a books-and-records inspection on the stockholder's use of the information in litigation filed in Delaware. Because the Court of Chancery incorrectly concluded that it lacked that authority and therefore did not exercise its discretion on the requested restriction, the judgment was reversed and remanded for consideration of the restriction in the first instance. The court identified case-specific factors relevant to that discretionary decision but did not decide whether the restriction should be imposed.